Texas All Lines Adjuster License Exam

Under the standard fire policy, which condition suspends coverage while it lasts?

1. APaying the premium late by one day
2. BRenting a storage unit
3. CAdding a smoke detector
4. DAn increased hazard the insured controlsCorrect

Why: The standard fire policy suspends liability while the hazard is increased by any means within the control or knowledge of the insured. Coverage resumes when the condition ends.New York Insurance Law § 3404, Fire insurance contract; standard policy provisions; permissible variations (standard fire policy text)

Which term means the cause of a loss, such as fire or hail?

1. AExposure
2. BPerilCorrect
3. CHazard
4. DRisk

Why: The California guide defines peril simply as cause of loss; a hazard is a circumstance that increases the likelihood or severity of loss.Commercial Insurance Guide