Texas Property and Casualty License Practice Exam

What must the insured do after a loss, according to standard duties?

1. Notify the government of the loss

2. Provide a proof of loss or sworn statement within 91 days

3. File for a tax exemption

4. Wait for an investigator to contact them

The correct answer is: Provide a proof of loss or sworn statement within 91 days

After experiencing a loss, the insured is required to provide proof of loss or a sworn statement within a specific time frame, which is typically outlined in the insurance policy. This duty is crucial because it allows the insurer to understand the nature and extent of the claim, evaluate the validity of the loss, and process the claim efficiently. Providing this documentation within 91 days ensures that all information is presented in a timely manner, helping both the insured and insurer in resolving the claim and determining the appropriate compensation for the loss. In contrast, notifying the government of the loss is not typically a requirement of standard insurance duties, as insurance claims are primarily a matter between the insured and the insurer. Filing for a tax exemption is unrelated to the claims process and usually pertains to different tax considerations. Additionally, while waiting for an investigator to contact the insured might happen in some cases, it is not a duty that the insured can rely on; rather, they must take proactive steps to notify their insurer, provide necessary documentation, and facilitate the claims process.