Beep Boop

Question 1

The section of an insurance policy that indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy.

Answer 1

Conditions

Question 2

What are some examples of conditions?

Answer 2

Inspections, changes to policy, liberalization clause, and return of premium.

Question 3

The section of the policy that lists parties to the contract, effective and renewal dates, promise from the insurer to pay claims, and perils.

Answer 3

Insuring Agreement

Question 4

Explain how to calculate coinsurance

Answer 4

Find the percentage of the agreed amount the insured was supposed to pay. The insurer will only pay this same percentage toward a partial loss.

Question 5

What coverage is included automatically in DP-2 and DP-3 but may be attached by endorsement to a basic form dwelling policy?

Answer 5

Additional Living Expense

Question 6

Which forms of dwelling Coverage would pay replacement cost for the dwelling?

Answer 6

DP-2 and DP-3

Question 7

How much is the standard deductible for all property coverage?

Answer 7

$250 (does not apply to fair rental value, additional living expense, and fire department service charge)

Question 8

Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss?

Answer 8

30 days

Question 9

In an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply ____

Answer 9

Automatically

Question 10

What percent of coverage A will the insurer pay out in total for damaged trees?

Answer 10

5% (max $500 per tree)

Question 11

How does the mobile home endorsement affect the other coverage of law or ordinance in a homeowners policy?

Answer 11

It removes the coverage.

Question 12

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

Answer 12

Specific Coverage

Question 13

What is a notice of claim form?

Answer 13

A form or statement from an insured to an insurer, informing the insurer that events leading to a possible claim have occurred.

Question 14

Who and what are covered by RCBAP?

Answer 14

The entire building, all units, improvements within unites, and personal property owned in common. It is owed exclusively by the unit owner (landlord) and does not protect personal property of the individual owners (renter)

Question 15

Which homeowners form is designed for individuals that own and reside in a condo?

Answer 15

HO-6

Question 16

When do transportation expense payments begin in the event of theft?

Answer 16

After 48 hours

Question 17

What is another word for deductible in property insurance?

Answer 17

self-insured retention

Question 18

How long do liability, Medical Payments, and Uninsured coverages apply to a newly added vehicle?

Answer 18

14 days

Question 19

How long does comp/collision coverage last for new vehicles added to a liability only policy?

Answer 19

4 Days

Question 20

How much will an auto policy pay for bail bond required due to a covered accidnet?

Answer 20

$250

Question 21

What’s the limit an auto policy will pay for defense fees?

Answer 21

Up to a reasonable limit (so potentially anything)

Question 22

How much will and auto policy pay for transportation expenses?

Answer 22

$20 per day up to $600

Question 23

A flat tire that occurs for a cause other than vandalism is considered:

Answer 23

A road hazard and is specifically excluded from physical damage coverage.

Question 24

Medical coverage pays out per ___

Answer 24

Person

Question 25

When a vehicle travels from one state to another, what happens to the limits of liability?

Answer 25

The do not change

Question 26

If an agent wishes to contest a cease and desist order, how many days after the order was issued does the agent have to make the request?

Answer 26

30 days

Question 27

When does a flood policy go into effect?

Answer 27

30 days after application and payment

Question 28

When does an endorsement for a flood policy go into effect?

Answer 28

at 12:01 am on the 5th day after request date

Question 29

In Texas, how much of a licensee’s total volume of premiums in a year must be other than controlled business?

Answer 29

25%

Question 30

What must an insurer do before the 15th business day after receipt of notice of claim?

Answer 30

1. Acknowledge receipt of claim
2. Begin investigation of claim
3. Request all statements, forms, and items that the insurer believes will be required from the claimant

Question 31

What are the TX liability minimums?

Answer 31

30/60/25

Question 32

What is the required TX minimum for PIP?

Answer 32

$2,500

Question 33

If the insurer requires a signed, sworn proof of loss, the insured must provide within how many days?

Answer 33

60 Days

Question 34

What type of hazard is it when wet leaves are on a sidewalk?

Answer 34

Physical hazard

Question 35

When an insurer transfers exposure to another insurer, it’s called?

Answer 35

Reinsurance

Question 36

When an insurance company becomes authorized to do business in this state, what is it considered?

Answer 36

Authorized/admitted

Question 37

What type of a contract is it when only one party is bound to future performance?

Answer 37

Unilateral

Question 38

A producer/agent’s powers that are stated in his/her agency contract, are said to be which type of power?

Answer 38

Express

Question 39

When an insurance policy is not clear, the court will usually interpret in favor of the insured. What type of contract does this describe?

Answer 39

Contract of Adhesion

Question 40

The Named Insured is found in what part of the policy?

Answer 40

Declarations

Question 41

Which liability doctrine establishes that a manufacturer of a product will be held liable for bodily injury or property damage arising from the use of their product, whether the product was defective?

Answer 41

Strict liability

Question 42

What type of negligence is it called when damages are reduced in proportion to the degree of negligence?

Answer 42

Comparative

Question 43

What is the maximum amount payable per term, regardless the number of claims?

Answer 43

Aggregate limit

Question 44

As an additional coverage, HO policies will pay up to _____ of a loss assessment.

Answer 44

$1000

This applies to a covered loss of property that’s owned collectively by members of a HOA