Texas Property and Casualty License Practice Exam

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Prepare for the Texas Property and Casualty License Exam. Utilize flashcards and multiple-choice questions, each equipped with hints and detailed explanations. Maximize your study efficiency today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the maximum amount of coverage for customized equipment under collision coverage unless endorsed?

$1,000
$2,000
$1,500
$750

The correct answer is: $1,500

The maximum amount of coverage for customized equipment under collision coverage, unless specifically endorsed, is $1,500. This limit is set to protect the insured from potential losses involving modifications or enhancements made to a vehicle, such as custom paint jobs, sound systems, or specialized equipment. Under standard auto insurance policies, collision coverage typically protects against damage to the insured vehicle resulting from a collision, but it usually has limitations when it comes to customized parts unless the policy is specifically endorsed to increase the coverage limits. In this case, knowing that the maximum standard limit is $1,500 helps you understand the coverage structure and how to approach additional endorsements, should you desire protection beyond that limit.