Texas Property and Casualty License Practice Exam

Which of the following is typically found on the declarations page of an insurance policy?

1. Coverage limits

2. Exclusions

3. Claim procedures

4. Policy procedures

The correct answer is: Coverage limits

The declarations page of an insurance policy is a crucial component that provides a summary of the policy's key details. Among these details, coverage limits are prominently displayed. Coverage limits refer to the maximum amount an insurance company will pay for a covered loss or occurrence, and this information is essential for the policyholder to understand their financial protections. The declarations page typically includes other important information as well, such as the names of the insured parties, the policy number, the effective dates of coverage, and the premium amount. However, the specific mention of coverage limits is what confirms the policyholder’s understanding of the maximum financial support they can receive in the event of a claim. The other components, such as exclusions, claim procedures, and policy procedures, while important, are generally found in the body of the policy rather than the declarations page. Exclusions detail what is not covered by the policy; claim procedures outline how to file a claim, and policy procedures generally refer to the rules governing the policy. Hence, coverage limits are the key detail typically highlighted on the declarations page, making it vital for anyone reviewing their insurance policy.