Exam review

All of the following reasons may be grounds for cancellation of an auto policy in place for more than 60 days EXCEPT

Vehicle operator reaching age 75

Homeowners policies consider all of the following insured locations EXCEPT

a strawberry patch owned by the insured

In a personal auto policy (PAP)a covered auto includes all of the following EXCEpt

A van used in the delivery business

Which of the following is NOT a classification of a hazard?

speculative

Which of the following is NOT an indicator of a competent party?

business; profession

How long would a windstorm and hail insurance policy be in effect if issued by the Texas Windstorm Insurance Association?

1 year

Unless reappointed by the Governorhow long is a Commissioner's term in office?

2 years

Which of the following would be eligible for Homeowners Coverage F- Medical Payments in the event of injury at the insured's premises ?

A full-time maid

Which of the following may appoint agents and perform underwriting responsibilities on behalf of an insurer?

A managing general agent

A property and liability insurer may write business on all of the following EXCEPT

A person's life

Which of the following is indicated on a certificate of insurance?

Amounts and types of insurance

A producer CANNOT act as an agent of an insurer without which of the following

An appointment by the insurer

Which of these would be covered by the medical payments coverage in a personal auto policy?

An insured slams a hand in a car door while getting in, breaking the hand.

In a DP-1, if the insured elects to apply Coverage B to a detached garage, Coverage A will

Be reduced by 10%

If the State Insurance Department believes that an agent may be in violation of an insurance law or regulation, what may be issued?

Cease and desist order

An insured believes that his insurer is not properly fulfilling its obligations regarding his policyWhat section of the policy will give the insured more information about specific duties of the insurer?

Conditions

Which of the following is NOT a duty of the Commissioner?

Develop insurance rates

If a fire erupts in the kitchen and spreads to the upstairs bedroom, resulting in the destruction of furniture, what type loss has occurred?

Direct

Which of the following terms describes a vehicle that has been leased or rented?

Hired

All of the following are factors in the determination of actual cash value EXCEPT

Insurance premium paid

Which of the following is NOT true regarding the automatic increase in insurance endorsement in dwelling policies?

It does not require additional premium

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

An insured is at fault in an auto accident out of state. How will the insurer respond?

It will adjust the benefit to the minimum limits for the other state

An insurance company that is owned by the policyholders is called a

Mutual insurer

An insured has extended coverage on her dwelling that includes coverage for vandalism and malicious mischief. One evening, she is sitting in her living room when she hears a crash and the sound of glass breaking . She runs to the door and discovers a brick has been thrown through her glass door. To inform her insurer of a possible claim, she fills out a form detailing the events leading to the loss . What is the name of the form?

Notice of Claim form

The Commissioner would have grounds to discipline a producer for

Obtaining a license in order to write a policy for family members and associates only

An insurer may cancel a homeowners insurance policy that has been in effect for more than 60 days for any of the following reasons EXCEPT

The insured submits a claim against the policy

Which of the following entities is considered the principal?

The insurer issuing a policy

If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true?

The insurer will be reimbursed for the excess costs by the NFIP

An insured is injured while driving his own car. Which of the following coverages will pay for the loss?

medical payments

The declarations section in a homeowners policy provides all of the following information EXCEPT

policy exclusions

The exact, direct, uninterrupted cause of loss is the

proximate cause

An insured has a personal umbrella with a $2,000 self-insured retention (SIR)Assuming no other policy is involved, how much would the umbrella pay after a $12,000 personal injury liability claim?

10,000

Policy limits are the maximum amount an insured may collect, or for which an insured is protected under the terms of the

Policy

An insured has a maximum limit of coverage available under her liability policy during a policy year, regardless of the number of claims made or the number of accidents limits are restored at the policy anniversary. What type of limit does this insured have?

aggregate limit

The transfer of a legal right or interest in an insurance policy is called

assignment

Which of the following components is NOT part of a policy structure?

benefits

In order to start coverage before a policy is issued, insurers can issue a(n)

binder

For an additional premium, the extended coverages written on the basic form dwelling policy would cover which of the following?

riot

An insurer's right to take possession of property after having paid for the loss is referred to as the right to

salvage

What is the waiting period for transportation expenses coverage for a loss other than theft of a covered vehicle?

24 hours

Which of the following components is NOT part of a policy structure?

Benefits

What is a sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage that is neither expected nor intended called?

accident

An insurance policy form that lists specific covered perils provides

named peril coverage

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be a

representation

An insured has $5,000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000the second passenger's total $6,500 and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage?

15,200

How many continuing education hours must be completed on the subject of ethics every license renewal period?

3

The Commissioner of Insurance must evaluate an insurer's financial condition and its ability to comply with state every

5 years

Which of the following best describes a rebate?

A producer returning part of her commission to her client, as an inducement to buy

In order to obtain insurance through the Texas Automobile Insurance Plan Association , the applicant must provide proof that they have been rejected by

At least 2 auto insurers

To determine the actual cash value of an insured property, what must be deducted from the current replacement cost?

Depreciated value

Loss valuation is best described as the process of

Determining the premium charged and the amount of insurance required on a specific property

An insured was involved in an accident that was caused by a tire blowing out. The insured was severely injured and incurred medical expenses of $100,000The insured brought a recovery action against the manufacturers of the auto and the tiresThe court held that the tire was the cause of the accidentWho is required to pay for this loss?

Manufacturing of the tire

What term includes losses caused by continuous or repeated exposure to conditions resulting in injury to persons damage to property that is neither intended nor expected?

Occurrence

Which of the following is consideration on the part of an insurer?

Paying a claim

Each of the following may be insured under an HO-3 homeowners policy EXCEPT

The owner-occupant of a condominium unit.

If an insurance policy has the additional coverage provision, how does it affect the policy premium?

There is no additional premium

Which of the following documents notifies the insurer of events that may lead to a possible claim?

notice of claim

Prior to paying a claimant under a professional liability policy , the insurer must

obtain the consent of the insured

An insured intentionally did not disclose a material fact on an application for insurance. This would be considered

concealment

Under Coverage Cand at the request of an insured, the personal property of a guest or residence employee is covered

coverage c

An insured has $5,000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000The first passenger's total $4,000the second passenger's total $6,500and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage ?

5,000 limit per person

An insurer filed a new policy form and endorsements with the Commissioner 60 days ago. The insurer has not heard back from the CommissionerWhat can the insurer assume?

The form has been approved

Which of the following would NOT be covered by uninsured motorist coverage?

The insured causes a head-on collision with the car of an uninsured motorist.

In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT

A van used in the delivery business

Which of the following is covered under a dwelling policy?

coverage c