Texas All Lines Practice Test Questions |Test Bank| +450 Question and Answers 2023 Graded A+

Texas All Lines Practice Test Questions |Test Bank| +450 Question and Answers 2023 Graded A+

Which of the following is found in the declarations page of an insurance policy? {{Correct Ans- The name of the insured party

Which of the following best defines the principle of indemnity? {{Correct Ans- After a loss, the insured should be restored to his approximate financial condition before the loss

What is a reserve, in insurance terms? {{Correct Ans- A pool of collected premiums that the insurer sets aside to pay claims

Insurance policies are unilateral contracts. This means: {{Correct Ans- only one party has an obligation to perform.

All of the following pieces of information can be found in the Conditions section of an insurance policy, EXCEPT: {{Correct Ans- causes of loss that are not covered.

Which section of an insurance policy is designed to OMIT certain risks from coverage? {{Correct Ans- Exclusions

In which section of an insurance policy might you find the following statement? "Damage to insured property must be reported within 15 days of the damaging occurrence." {{Correct Ans- Conditions

If an adjuster needs to find clarification about what actually constitutes a collision, in which section of an insurance policy would she find that information? {{Correct Ans- Definitions

Which of the following is NOT a characteristic of insurance contracts? {{Correct Ans- Universal

In an insurance policy, the summary of what the insurer will do in the event of a covered loss is called: {{Correct Ans- Insuring agreement

Which of the following would you find in the Conditions section of an insurance policy? {{Correct Ans- The insured's duty after a loss

When an insurer buys insurance to reduce its exposure to loss, this is called: {{Correct Ans- Re-insurance

Mark incurred $8,000 damage to his car in an accident. He received $8,000 from his insurance company and $4,000 from the other driver. By receiving a profit from the loss, Mark could be in violation of: {{Correct Ans- the principle of indemnity.

The fee paid by the insured in exchange for an insurance policy is called a: {{Correct Ans- Premium

Arlene's house suffered structural damage in an earthquake last year, but her policy does not cover earthquake damage, so Arlene never got it fixed. When a tornado rips through her neighborhood, it causes some roof damage totaling $2,000, and Arlene sees an opportunity in the situation. She files a claim for the roof damage, but also claims that the tornado caused the structural damage to her house that was actually caused by the earthquake last year. Which of the following statements is true? {{Correct Ans- Arlene has just committed soft fraud.