Tx State Property And Casualty License Certification Exam Practice Questions With Answer

Stock Insurers {Ans: Owned by stockholders/shareholders For profit company}Part D (personal auto policy) {Ans: Damage to your auto}Part A (personal auto policy) {Ans: Liability}Punitive Damages {Ans: To punish the wrongdoer due to gross negligence}Foreign {Ans: Another state}What is a tort? {Ans: A civil wrong}Terrorism Risk Insurance Act {Ans: has to be certified by sec of state, sec of treasury, and attorney general as an eligible act not the president. Will not pay more than 100 billion in aggregate.}Termination of Appointment {Ans: If an agency contract has been in place for two years or longer agent is entitled to a 6 months advanced notice. Reason for termination must be provided}What is the definition of liability? {Ans: Individual or organizations maybe held responsible for action resulting in bodily injury or property damage to others.}What are the four major parts to an insurance policy structure? (DICE) {Ans: D - Declarations Page (First Page) I - Insuring Agreement (Insurers promise to pay) C - Conditions (Rules) E - Exclusions (Not covered)}What are the two types of termination of a policy? {Ans: Cancellation - occurs when the insured/insurer cancels the contract before the end