pass Insurance exam !!!
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Warranty
Which of the following types of insurance would be covered under the Terrorism Risk Insurance Act (TRIA)?
Workers compensation insurance
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Which of the following would modify the original insurance contract by either adding or removing coverage?
Endorsements
Which of the following is true of dwelling policy coverage?
Exclusions apply to all three policy forms.
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
Occurrence
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?
Other insurance
An insured has a policy with an insurance company that became insolvent. The policy has $1,600 of unearned premium. How much of this premium will the insured be able to recover from the Texas Property and Casualty Insurance Guaranty Association?
$1,600
In insurance, an offer is usually made when
An applicant submits an application to the insurer.
Participation in the Texas Automobile Insurance Plan Association is required for
Auto liability insurers.
If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for
30 days.
An insurer may cancel a personal auto policy if the policy has been in effect for at least how many days?
60 days
which of the following is a statutory defense?
Comparative negligence. Many states, by statute, require that damages be apportioned based upon the degree of negligence of each party in an accident.
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
When an individual obtains an insurance license for the primary purpose of writing insurance on themselves, or for members of their immediate family, or business, this is called
Controlled business.
In the split limit coverage in personal auto policies, which limit indicates the maximum amount the policy will pay for bodily injury per person?
First limit
The pro rata liability clause is designed to protect the principle of
Indemnity.
Persons covered under an insurance policy, whether named or not, are known as the
Insureds.
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage.
Which of the following would NOT be considered causes for flood conditions covered by the National Flood Insurance Program?
Landslides
The insured's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this property?
Market value
The Federal Fair Credit Reporting Act
Regulates consumer reports.
A Certificate of Insurance is a written document that
Shows the types and amounts of insurance issued to the insured.
An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have?
Specific
A license may NOT be denied, suspended, or revoked if the licensee
Submits an unsigned insurance policy application.
The insured rented a car while her regular vehicle was being repaired after an accident. The rented car is considered a
Temporary substitute.
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays
The excess over the self-insured retention.
Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?
The insured damages a rented garage when he failed to stop in time.
Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?
The insured is injured while driving his motorcycle on his resident premises.