exam questions

What is the amount of coverage that would be available for detached garage under the coverage B-other structures of a homeowners policy?

10% of coverage A

In order to qualify for supplemental income benefits, an employee must have an impairment rating of at least

15%

If an auto policy had split limits of 30/60/25, how much will the policy pay for property damage in a single accident?

25,000

The commissioner of insurance issues a cease and desist order and immediately receives a request for the changes to be reviewed in a hearing. within how many days must the hearing be held?

30 days

how long is the waiting period after the application has been accepted before flood coverage goes into effect?

30 days

Which of the following is the basic auto liability required for bodily injury or death to any one person in any one accident?

30,000

The Insurance Commissioner may examine the affairs of any insurer as often as necessary but not less frequently than once every

5 years

what percentage of continuing education hours must be in a classroom setting?

50%

If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?

50,000

The commissioner of insurance issues a cease and desist order to an agent. if the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

60 days

The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to

90 days

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

Which of the following is another term for an authorized insurer?

Admitted

Dwelling policy coverage C- personal property will cover all of the following except?

Animals and birds

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Authorized

Which of the following would provide coverage for loss of income when a insured rental dwelling is rendered uninhabitable because of a covered loss?

Coverage D

In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

First name insured

An employee who refuses to cooperate with services provided by the Rehabilitation Commission will

Lose entitlement to supplemental income benefits

The causes of loss insured against in an insurance policy are known as

Perils

Who might receive dividends from a mutual insurer?

Policyholders

The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called

Pro Rata liability

Which type of liability insurance may an insured reject in writing?

Uninsured motorist coverage

What type of liability would a person who owns wild animals have?

absolute

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

which of the following types of valuation works best for property whose value does not fluctuate much?

agreed value

With respect to the business of insurance, a hazard is

any condition or exposure that increases the possibility of loss.

Termination of an in-force insurance policy prior to the expiration date shown in the policy is known as

cancellation

Which of the following is a statutory defense?

comparative negligence

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

concealment

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

Which of the following coverages in the dwelling policy would provide protection to contents damaged by fire?

coverage C

A beauty parlor burns to the ground. What type of loss is this to the owner?

direct

All of the following are exclusions that apply in all three types of dwelling policies except?

fire or lighting

Events or conditions that increase the chances of an insured loss occurring are referred to as

hazards

The policy conditions define

how parties to the contract must act following a loss

Regarding workers compensation, employees who have reached maximum medical improvement will be entitled to

impairment income benefits

Under a DP_1 form, coverage C -persona; property is

limited to covering a servants property while at the insured location

An employee who refuses services or refuses to cooperate with services provided by the Rehabilitation Commission will

lose entitlement to supplemental income benefits

Which of the following would be covered under the Utility services- Time element endorsement?

loss of business income arising from loss of utility service caused by an insured peril

which of the following coverages in dwelling and homeowners policies is for indirect losses?

loss of use

Individuals who are entitled to purchase auto liability insurance but unable to obtain it in the normal market

may apply for coverage from the Texas Automobile Insurance Plan Association

An insurance contract must contain all of the following to be considered legally binding

offer and acceptance, consideration, competent parties

which of the following liability policies is usually written on a "claims-made" form?

professional liability insurance

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 Federal Fair Credit Reporting Act

regulates consumer reports

In a dwelling policy, which of the following other structures would be covered?

rented to a neighbor for use as a private garage

Which method of loss valuation is contrary to the basic concept of indemnity?

replacement cost

In property insurance, actual cash value is defined as which of the following?

replacement cost at the time of the loss, less depreciation

For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property this id defined as

robbery

property insurance that provides 100,000 coverage for a building and 50,000 coverage for personal property at a single location is called

specific coverage

A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?

stated amount

All of the following are unfair claims settlement practices EXCEPT

suggesting negotiations in setting the claim.

The income benefit received by an employee who is disabled but has not attained maximum medical improvement is classified as

temporary

Under a businessowners policy, the inspections and surveys condition specifies all of the following EXCEPT

the insurer does not have the right to inspect the insured's property and operations.

Under Vicarious liability an insured may be held responsible for the acts of other family members or independent contractors engaged by the insured to perform work.

true

When does a business need to purchase a liquor liability policy?

when it is in the business of manufacturing, distributing, serving or furnishing alcoholic beverages.

Which of the following types of insurance would be covered under the terrorism risk insurance act (TRIA)?

workers compensation insurance