Property and Casualty Texas State Exam

Which of the following best defines a fiduciary?

A person in a position of trust that must act in the best interest of another

Which of the following best defines Fiduciary?

A person in position of trust to act in the best interest of another

What is the minimum number of underwriters required to form a Texas a LLyods?

10

What year was the McCarran-Ferguson act enacted?

1945

A new agent must complete at__ least hours of continuing education within 24 months of initial licensure?

24 Hours

How much of a producers books of business must be written on something other than what he controls or has an interest in?

25%

How many days notice before the expiration days of the policy does an insurer have to give the insured before not renewing policy?

30 Days

The additional coverage of the commercial building and business form protects from further loss up to how many days

30 Days

The insurance commissioner must give how many days notice prior to holding a hearing

30 Days

The minimum split of liability required by Texas law are

30/60/25

The most common of extra expense funds during the first three months following a direct loss is

40/80/100

____ of continuing education must be completed in the classroom or classroom equivalent

50%

How many days in advance must an insurer in Texas file a policy form with the commission for approval?

60 Days

How many days in advance must an insurer in Texas file a policy form with the commissioner's approval?

60 Days

What is the length of time for "MINI" tail under the basic extended reporting period of a CGL?

60 Days, for "MINITAIL" and Five years for "MIDTAIL"

Personal injury protection pays for what percentage of the loss of income?

80%

A temporary agent's license is valid for what time

90 Days

Which of the following determines the rate of a unit of insurance?

Actuary

Which of the following liability limits are given in addition to the applicable limits of liability stated in the policy?

Additional (supplementary) payments

What type of insurance company is domiciled in England but conducts business in the United States ?

Alien

A certificate of ____ permits an insurance company to transact business in Texas

Authority

How are coverage D and coverage E paid in both the broad and special form under the dwelling program?

Coverage D and E are paid up to 20% for both combined, not each separately of the dwelling coverage amount

The part of a contract that states an insured shall never profit from loss is known as

Indemnity

An underwriter is viewing a map to determine the nature of the general area in which the insured's property is located is known as

Inspection Report

The responsibility for the insured to prevent further loss under reasonable conditions is listed under

Insuring Clause

A domestic insurance company in Texas is considered a company that

Is incorporated and formed in Texas

Which of the following may not charge fees for insurance advice?

Legal Reserve Agents

Boats of what length require Yacht coverage?

Longer than 26 feet

The part of the condition section of the policy that states covered property losses are settled as to the type of coverage that the insured purchased is which of the following?

Loss settlement provisions

Which of the following are considered to be professional liability insurance?

Malpractice and errors and omissions

Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

Misrepresentation

The name of the financial responsibility law in Texas is

Motor Vehicle Safety Responsibility Law

Which type of insurance company allows the policy owner to elect a governing body?

Mutual

Does the payment of Supplementary Benefits in CGL reduce the liability limits of a CGL?

Never

Personal injury protection and medical payments are considered to be what type of coverage?

No Fault

A decision made by the insured or insurer to not continue coverage after the current policy has expired is

Non renewal

If a loss occurs, the first step an insured must take to file a successful claim is

Notice Of Claim

A policy that will cover any specific immediate losses unless they are excluded in the policy coverage is a

Open Peril

The face amount of Surety bond is called the

Penalty

E is a professional musician who owns a vintage guitar with a current value of $20,000. E should properly insure this guitar

Personal Article Floaters

The settlement for liquidated demand loss does not cover which of the following?

Personal Property

Which of the following exposure is the most likely cause for a commercial general liability policy to pay a loss on the behalf of an insured business?

Premises

The clause in a mobile home policy that will pay the insured up to $500 without deductible, to take property out of harm's way of impending peril is called

Property Removed

An unbroken chain of events that begins negligence and leads to loss is known as

Proximate Cause

What must the insured do in order for the damage caused by hit and run to be covered

Report Incident to Police

The deductible that must be paid in an umbrella policy is known as

Self Insured Retention

Which of the following is not allowed under the risk manager license?

Selling Insurance

To terminate an agent's appointment the insurer must

Send termination notice to the Texas Department of Insurance

Insurance recovering losses in car accident from another insurance company is called

Subrogation

Which of the following bonds guarantees performance?

Surety

Which of the following insurer would an agent in Texas write a high-risk insurance policy?

Surplus Lines

Which regulatory body governs Texas LLoyd insurers

Texas Insurance Code

What is the official name for the joint underwriting association

Texas Medical Liability Insurance Underwriting Association

Rebating is determining the price of which of the following

The cost of unit of Insurance

When a community required to do so has agreed to adopt flood control measures set forth, that community is then eligible for

The emergency program

Which of the following is not included in the insuring clause?

The name of Insured

Under coverage B, Medical payments in a Personal Auto Policy, how long a period can an insured collect benefits from the date of an accident?

Three Years (3)

The coverage of medical payments will pay up to how many years?

Three years

Business written only on a producers property or interests is known as

Controlled Business

What is the automatic limit of coverage b medical payments in the pap?

$1,000

If an insured has a policy split limit liability of 25/40/15 what is the maximum amount the insurer will pay for property?

$15,000

Property damage may be written on uninsured/under insured motorist coverage with deductible of

$250

The maximum aggregate limit of Medical professional liability insurance through the JUA is

$3,000,000

The maximum the Texas property and casualty guaranty association will pay per claim is

$300,000

The medical payments will pay what limit, per person, for medical and funeral expenses?

$500

The standard deductible for dwelling policy is

$500

What is the alcohol concentration required to quality as intoxicated in Texas?

0.08

The best explanation of when business income coverage normally begins and ends is which of the following?

BI starts 72 hours after covered loss occurs and ends when the damage caused by the covered peril should have been repaired or replaced

Which of the following provides for the property of customers?

Bailee customers policy

All the details of which party is responsible for shipped property while in transit is typically indicated in a written contract called the

Bill Of Laden

If local police refuse to let a business owner gain access to his business due to safety concerns for a couple weeks, the owner is entitled to business income because of which additional expenses

Civil Authority

The clause that states an insured must pay a certain amount of partial losses if they do not carry the minimum specified amount of replacement cost value is known as

Coinsurance/Insurance to Value

The phrase "transacting business" includes

Collecting premiums

Which type of fidelity bond would cover a maximum amount for a single loss regardless of the number of employees involved?

Commercial Blanket

Which of the following are types of surety bonds?

Contracts, Federal and Court

Which of the following is a term for money awarded to an individual when a negligent party is liable for loss?

Damages

N just purchased a HO-4 policy to insure his apartment. If n wants to find the description of property insured as well as any endorsements, N should look at

Declarations

Which of the following is not a form of coverage available under commercial building and business personal property form?

Earthquake

A change made by an insurer on an auto policy that deletes benefits after a policy has been issued is known as

Endorsement

How often must an insurance agent license normally be renewed?

Every two years

K has a property policy and would like to know which type of property is not protected against loss under the policy. The part of the contract that K should read is the:

Exclusions

In the flood program which entity specifies the flood control measure that certain communities must adopt

FEMA

What is the definition of a FAIR plan?

Fair Access To Insurance Requirements

Inland marine forms which have been pre-approved for sale by a department of insurance are referred to as

Filed Forms

Which of the following type of loss must occur before liquidated demand is put in place to settle the loss?

Fire

Cyber risk insurance that covers both customers and legal settlements would be known as

First party response and third party defense

An insurance company organized under New York laws and licensed to do business in Texas is considered a

Foreign Company

What is an organization that solicits insurance only to its members?

Fraternal Benefit Society

Which of the following homeowners forms pays for loss on a functional replacement cost basis?

HO-8

In order to be an eligible surplus plus line insurer in Texas , an Insurance company must

Have at least $15 million dollars in capital and surplus

An event or mindset that greatly increases the change that a peril will actually occur is known as

Hazard

What kind of insurance is usually written through surplus lines insurers

High Risk

Which of the following insurance coverage does the Texas property and casualty guaranty association cover

Homeowners Insurance

How many authorized insurers in Texas must reject coverage on a property before it is eligible for the FAIR plan

Two (2)

To obtain insurance through the Texas Automobile Insurance Policy Association an applicant and his agent must certify that the applicant has been rejected for insurance by how many licensed insurers

Two Insurers

Which of the following statements are CORRECT regarding umbrella policies?

Umbrellas must be purchased separately and in addition to general liability and auto coverage

How long does an insurance company appointment remain in force

Until terminated

In homeowner policy the vandalism and malicious mischief peril will not cover loss of residence dwelling if it is

Vacant for 60 or more consecutive days

What is required of an agent whose license has been revoked?

Wait at least five years before applying for a new license

A foreign insurance company conducting Insurance business in Texas

Was formed under the laws of another state