Exams / Texas Property and Casualty Insurance License / Tex. Ins. Code §862.053
Tex. Ins. Code §862.053 — what it says, and how the exam tests it
This section is cited by 2 of our practice questions and is tested on the Texas Property and Casualty Insurance License.
The text
Sec. 862.053. FIRE INSURANCE: TOTAL LOSS OF REAL PROPERTY. (a) A fire insurance policy, in case of a total loss by fire of property insured, shall be held and considered to be a liquidated demand against the company for the full amount of such policy. This subsection does not apply to personal property. (b) An insurance company shall incorporate verbatim the provisions of Subsection (a) in each fire insurance policy issued as coverage on real property in this state. (c) The commissioner shall require compliance with this section. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.220, eff. Sept. 1, 2003.
Public record. Read the full, current section at the official source: tcss.legis.texas.gov
How it comes up on the exam
Practice questions written from this section — answers and explanations are in the drill.
- Under Texas law, when a fire insurance policy covers real property and the property is a total loss by fire, the policy is treated as which of the following?
drill Texas Statutes and Rules Pertinent to Property and Casualty Insurance → - Under Tex. Ins. Code §862.053, the total-loss-as-liquidated-demand provision does NOT apply to which type of property?
drill Texas Statutes and Rules Pertinent to Property and Casualty Insurance →