Texas 1

Package policies allow for lower deductibles

A Homeowners policy is a personal package policy. All of the following are advantages of a personal package policy, EXCEPT:

The strict or absolute liability standard

A common carrier under a Motor Truck Cargo policy is held to which of the following liability standards when handling cargo?

Malfeasance

A legal term describing an intentional act that is illegal or morally wrong, and contributes to the injury of another person is:

Speculative

A risk where both profit and loss are possible is known as:

Executory

Andrew Daniels has paid a premium to an insurance company for a Homeowners policy, and the policy was issued. Later, a fire occurred, and Andrew's home suffered damage. In this situation, both Andrew and his insurance company are required to perform certain duties because an insurance policy is a(n) ______ contract.

A Bid Bond

As a promise from the surety that if the principal is the low bidder and is awarded the contract, the principal will enter into the contract and provide required performance and other bonds.

demurrage

Compensation payable for the delaying a vessel carrying freight:

Which of the following dwelling forms provides broad perils coverage for personal property?

DP-2 and DP-3 only.

Personal Injury

Homeowner policies typically provide coverage for all of the following, EXCEPT:

Concealment

If an insured conceals a material fact, makes false statements or engages in a fraudulent act, he or she is guilty of:

Consideration

In a contract, something of value exchanged between the parties is referred to as:

The Inchmaree clause

Ocean marine coverage for losses to the insured vessel caused by bursting boilers, latent defects in the vessel and negligence of the master or crew members are addressed by which of the following?

Commercial property insurance

On December 31st of each year, the Texas Department of Insurance computes the reinsurance reserves for all unexpired risks of domestic, foreign and alien insurers doing business in Texas. All of the following types of insurance are EXEMPT from these calculations, EXCEPT:

Bodily injury caused by the negligence of the insured employer

Part One of the standard workers' compensation policy covers all of the following, EXCEPT:

Protection of funds handled by employees

Surety bonds guarantee the fulfillment of specific obligations. Each of the following may be the subject of a surety bond, EXCEPT

a 'time deductible' of 72-hours

The insured has sustained a loss of income from a covered peril under his Business owners policy. What deductible applies to "loss of income" coverage?

A FAIR Plan is created in a state:

To provide coverage in the residual insurance market of any state that was created to provide insurance to insureds who are "high risk" and cannot obtain insurance in the usual markets.

The Commercial Property Conditions form

Which "conditions" form in a complete Commercial Property policy specifies the coverage territory

The "Insurance Under Two or More Coverages" condition

Which of the following Commercial Property conditions is meant to prevent "over indemnification" of the insured?

The Legal Liability form

Which of the following Commercial Property coverage forms provides coverage when the insured is negligent and causes damage to property that was in their care, custody and control?

Determining the proximate cause of the injury or illness

Which of the following is NOT a method of determining causation of injuries under a workers' compensation claim?

Appeal bond

Which of the following is NOT a type of "fiduciary" bond?

General Average Loss

Which of the following is a type of "voluntary loss" taken to save the property from further loss?