Texas Insurance FREE Sample Exam — Fixed Set

An insured is deciding between forms and wants coverage that looks to the year the injury happens, even if claims emerge years later. Which form identity matches that preference?

The occurrence form

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The claims-made form

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The medical payments form

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The reporting-endorsement form

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While a tenant is away, a landlord’s agent enters the leased apartment without permission or emergency justification to show it to prospective renters. Which Coverage B offense is implicated?

Slogan infringement

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Malicious prosecution

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Quality failure exclusion

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Wrongful entry into a premises that another occupies

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An insurer groups many similar small liability losses that have occurred but have not been individually reported and holds one combined estimate for them. That combined estimate is an example of

A separate case reserve for each claimant

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A bulk reserve

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A full release of the group

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A high-low settlement range

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A masked person uses a weapon to take cash directly from a store clerk, while another person secretly picks a customer’s pocket with no confrontation. The first taking, contrasted with secret taking without force, is best defined as which of the following?

Burglary

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Robbery

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Mysterious disappearance

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Embezzlement

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A cleaning company knows a client slipped on a freshly mopped floor in March but gives the insurer no notice until the client files suit the following January, reasoning that notice is only due once a lawsuit exists. What is wrong with that reasoning?

Nothing, because the duties condition is triggered only by a suit

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The January notice is timely because it preceded the trial date

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The duty attaches at the occurrence and, if a claim develops, the insured must notify as soon as practicable rather than waiting for suit papers

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The company should have notified the client's health insurer instead about the slip and fall, because the client's own health insurer is the party the duties condition requires the company to notify

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One person insured under a homeowners policy deliberately damages covered property, while another insured on the same policy is innocent and files the claim. Standard intentional loss wording is written to apply based on the acts of which person?

Only the named insured's acts can ever matter, never any other insured's conduct.

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An act of any insured under the policy can trigger the intentional loss exclusion as the standard wording frames it.

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Intentional acts are excluded only when committed by a guest.

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Intentional loss applies only when both insureds acted together.

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A client says flood pricing should be the same for every house on the street. Which reply best explains current NFIP pricing?

Each house is rated on its own risk, so elevation, distance to water, and rebuilding cost can make premiums differ house by house

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Every house on a street is legally required to pay the same premium, whether or not the insurer has already made a partial payment on some other part of the same claim

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Premiums differ only because agents charge different commissions

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Premiums are random and cannot be explained

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A tenant is legally responsible for negligent damage the tenant causes to a landlord’s building. That responsibility supports the tenant having an insurable interest in what sense?

The tenant becomes owner of the building

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Responsibility eliminates the need for the landlord's own policy

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The landlord loses all interest in the building

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The tenant faces financial loss if the building is damaged through the tenant's responsibility

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A project owner asks, after a covered loss has already occurred and been paid, whether the property insurer will now add a waiver of subrogation protecting the contractor whose negligence caused that loss. What is the realistic answer?

The contractor can add the waiver without the insurer

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The waiver becomes unnecessary because the loss is paid

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Yes, waivers are routinely added retroactively after losses, based on the facts presented and recorded when the claim was submitted for review, and under the terms and conditions stated in the applicable policy form

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A waiver of subrogation is arranged before the loss, typically by endorsement for an additional charge; an insurer will not ordinarily surrender an existing recovery right after the loss

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Which conviction falls within the guideline’s list of serious offenses because it involves a breach of a position of trust?

An overdue library fine

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A first speeding ticket

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A felony involving moral turpitude or breach of fiduciary duty

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A misdemeanor littering conviction

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A lender files a claim under a mortgage guaranty policy after a borrower defaults, and later seeks prompt payment damages for slow claim handling. What is the correct response?

Those damages do not arise under the prompt payment law, because mortgage guaranty insurance is excepted from its provisions

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The prompt payment law covers mortgage guaranty insurance only for loans under $100,000

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The damages apply, but at half the usual interest rate

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The lender recovers the damages, because mortgage guaranty claims are the law's central subject

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A member insurer with large Texas premiums asks for its maximum regular assessment exposure for the year. Which cap applies?

Assessments are capped at five percent of net direct written premiums

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There is no cap on assessments in any year

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Assessments during a calendar year generally may not exceed two percent of the insurer's net direct written premiums for the preceding calendar year in the lines assessed

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Assessments are capped at one percent of the insurer's surplus

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Texas Insurance FREE Sample Exam — Fixed Set

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