Texas Insurance Practice Exam Questions and Answers Already Graded A

Texas Insurance Practice Exam Questions and Answers Already Graded A Subrogration may follow which of the following events? ✔✔An insured collects from her insurance company for damages caused by a third party Medical payments coverage under a BOP applies to expenses incurred by non-insureds for bodily injury and reported to the insurer within: ✔✔One year after the accident Claims expenses covered under Section II - Personal Liability of the standard Homeowners forms do NOT pay for which of the following? ✔✔Loss of the insured's earnings subject to a pre-determined limit of $300 per day Which statement best describes "defense" coverage under the Section II - Liability coverage of the Businessowners policy? ✔✔Defense costs are not subject to a limit Under an aircraft policy what is NOT a covered territory usually covered (unless endorsed) while the aircraft is in flight? ✔✔Costa Rico Under a standard Equipment Breakdown policy, the full replacement cost will be paid on the claim, if the equipment is repaired within what time period following the loss? ✔✔24 months When a licensee in Texas receives an inquiry from the Insurance Department regarding their insurance transactions, he or she must respond in writing: ✔✔Not later than the 15th day after the date the inquiry is received The sprinkler leakage coverage of a Commercial Property form does not provide coverage for: ✔✔damage to growing crops from malfunctioning sprinklers Under the appraisal clause in a commercial inland form, which of the following is true? ✔✔the insurer still retains its right to deny the claim entirely All of the following statements are true regarding state Guaranty Associations, Except: ✔✔The fund assists insurers in gaining new insurance business by allowing them to advertise their membership in the Guaranty Association. The Personal Inland Marine coverage form that covers clothing, cameras and other portable property worn or carried by tourists and travelers is known as a: ✔✔Personal Effects floater. Each of the following is a feature of Business Income Coverage, EXCEPT ✔✔Monetary deductibles. . The limits of the Employers' Liability section of a standard workers' compensation policy are: ✔✔Listed on the Information page.. The term "time element coverage" is used when the amount of loss depends on: ✔✔The time it takes to repair, rebuild or restore damaged property. Under a personal automobile policy with uninsured motorists coverage, a disagreement between an insurance company and an insured on the amount of a loss can be settled by: ✔✔Arbitration Aaron purchases a Homeowners insurance policy for $700,000 with a 4% deductible. A few months later, a heavy hailstorm destroys his roof, porch, and windows, causing $50,000 in damages. How much should Aaron expect to receive from the insurance company to pay for the damages? ✔✔$22,000 A Personal Umbrella policy will cover an insured for an "occurrence" or "offense" that occurs ✔✔Anywhere in the world. The NAIC Model Unfair Claim Settlement Practice Act provides for a financial penalty of _________ for each violation of the Act. ✔✔$1,000 If a building insured under a BOP has been vacant or unoccupied beyond _____ the insurer can send the insured a notice of cancellation. ✔✔60 days Risk retention and purchasing groups are used to provide which of the following types of coverage? ✔✔Products Liability insurance.. The Now Company carries a special BOP policy with a liability limit of $500,000. The company is involved in an accident causing $200,000 bodily injury damage and $200,000 property damage. The total amount collectible under the policy is: ✔✔$400,000 Which of the following would be covered under an