TX Personal Lines

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?

$14,000

A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss?

$30,000

What is proof of loss?

A sworn statement that must usually be furnished by the insured to an insurer before any loss under a policy can be paid.

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

Additional Coverage

What is covered by the condominium unit owners endorsement?

Alterations, appliances, fixtures

A vehicle fleeing a hit-and-run accident is considered what type of insured?

An uninsured vehicle

Under a personal auto policy, in which location would a vehicle primarily garaged in California be covered?

Any other state

T/F: The insuring agreement can be found in the insurance policy?

FALSE

T/F: Notifying the insured in the event of financial difficulty a duty of the insurer found in property policy conditions?

False

T/F: Rowboats and canoes are not covered under the dwelling policy as personal property?

False - they are covered!

What is not covered by the condominium unit owners endorsement?

Furniture in the building

Persons covered under an insurance policy, whether named or not, are known as the

Insureds

Which of the following would be named on the declarations page of a property or liability policy? a) First named insured b) Beneficiaries c) All insureds d) Additional insureds

first named insured

What type of compensatory damages will pay for pain and suffering and disfigurement?

general

What must be met in order for the total amount of a partial loss to be paid?

home must be insured for at least 80% of value on the date of loss.

what type of information would be found in a policy's insuring agreement

renewal dates NOT policy limits, insurer's address, or location of premises

Losses that result from the freezing of a plumbing system while the dwelling is vacant would be excluded under a homeowners policy unless . . .

the insured had drained the plumbing system.

When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy,

the loss reimbursement is paid to the mortgagee

Proof of loss must be in what format

written

Insurable interest in a property policy must be proven

at time of loss

How long must producer maintain records of continuing education course completion?

4 years

Producers must maintain completion of CE courses for how long?

4 years from the date of completion.

What are the special form dwelling policy coverages for Coverage A and Coverage C?

Coverage A is for all-risk perils and Coverage C is for the broad form perils.

Which of the following does the term proximate cause refer to?

Negligence that leads to an injury

A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called?

Proof of loss

The all-risk coverage applies to what?

Property insured under Coverage A and B only.

Duties of the insurer in property policy conditions include . . .

Provide advance notice of cancellation; return any premiums to the insured; pay covered losses.

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

Which act created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry?

TRIA

A homeowner sells his house to a friend. The friend wants to keep the homeowner's current policy in effect. Under the assignment provision, what is required?

The homeowner will need to get written consent from the insurer before the policy can be reassigned.

Name an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums.

T/F: In the event of a total loss, the coinsurance clause does not operate and the face amount of the policy is paid.

True

Explain the difference between uninsured and underinsured.

Uninsured - having no insurance to include hit and run. Underinsured - carries less than the minimum requirements.

Would fire damage to the insured's rowboat stored in the attached garage be covered under the dwelling policy?

Yes

Who are insureds?

any person covered under a policy, whether named or not.

Name conditions commonly found in the insurance policy.

appraisal, cancellation and nonrenewal, and subrogation