TEXAS P&C EXAM - QUICK REFERENCE CHEAT SHEET
Must-Memorize Facts for Exam Day
CRITICAL NUMBERS TO MEMORIZE
Texas Auto Liability Minimums
25/50/20 - $25,000 bodily injury per person - $50,000 bodily injury per accident
- $20,000 property damage per accident
Homeowners Coverage Percentages
Coverage A (Dwelling): Base amount you choose
Coverage B (Other Structures): 10% of Coverage A
Coverage C (Personal Property): 50% of Coverage A
Coverage D (Loss of Use): 20-30% of Coverage A
Coinsurance Formula
(Amount Carried ÷ Amount Required) × Loss = Payment - Amount Required = Property
Value × Coinsurance % (usually 80%)
Workers Compensation Limits (Part B - Employers Liability)
$100,000 / $500,000 / $100,000 - $100k bodily injury by accident (each accident) - $500k
bodily injury by disease (policy limit) - $100k bodily injury by disease (each employee)
CGL Typical Limits
Per Occurrence: $1 million
General Aggregate: $2 million
Products-Completed Ops Aggregate: $2 million
Surety Bonds
Bid Bond Penalty: 10-20% of bid amount
Performance Bond: 100% of contract price
Payment Bond: 100% of contract price
Miller Act: Federal projects over $150,000
TIME PERIODS - MEMORIZE ALL!
Days What It Means
3 days Workers comp waiting period before benefits begin
7 days If disability exceeds 7 days, workers comp paid
, Days What It Means
retroactively from day 1
10 days • Life insurance free look period (Texas)• Cancellation
notice for nonpayment• Premium finance company
notice before cancellation
15 days Texas insurers must acknowledge claims within 15
days
30 days • NFIP (flood) waiting period• Medicare supplement
free look (Texas)• Notice before nonrenewal• Crime
insurance discovery period (minimum)
60 days • Replacement policy notice• Vacancy provision
(coverage restricted after 60 days)• First 60 days =
insurer can cancel for any reason
91 days Temporary emergency license duration
HOMEOWNERS POLICIES - KNOW THE DIFFERENCES
Policy Dwelling Personal Property Who It’s For
HO-3 Open Perils Named Perils Most common
(80% of policies)
HO-5 Open Perils Open Perils High-value homes
HO-6 Walls-in Named Perils Condo owners
HO-8 Named Perils Named Perils Older homes
(ACV)
COMMERCIAL PROPERTY FORMS
Form Type Coverage
CP 10 10 Basic 11 named perils (most
restrictive)
CP 10 20 Broad More named perils
CP 10 30 Special Open perils (MOST
COMPREHENSIVE)
AUTO COVERAGE - QUICK REFERENCE
Collision: Covers YOUR vehicle when you hit something (regardless of fault)
Comprehensive: Covers YOUR vehicle from fire, theft, vandalism, hail, animals, glass
UM/UIM (Texas): Optional but must be REJECTED IN WRITING PIP: Optional in Texas
(required in no-fault states)
Must-Memorize Facts for Exam Day
CRITICAL NUMBERS TO MEMORIZE
Texas Auto Liability Minimums
25/50/20 - $25,000 bodily injury per person - $50,000 bodily injury per accident
- $20,000 property damage per accident
Homeowners Coverage Percentages
Coverage A (Dwelling): Base amount you choose
Coverage B (Other Structures): 10% of Coverage A
Coverage C (Personal Property): 50% of Coverage A
Coverage D (Loss of Use): 20-30% of Coverage A
Coinsurance Formula
(Amount Carried ÷ Amount Required) × Loss = Payment - Amount Required = Property
Value × Coinsurance % (usually 80%)
Workers Compensation Limits (Part B - Employers Liability)
$100,000 / $500,000 / $100,000 - $100k bodily injury by accident (each accident) - $500k
bodily injury by disease (policy limit) - $100k bodily injury by disease (each employee)
CGL Typical Limits
Per Occurrence: $1 million
General Aggregate: $2 million
Products-Completed Ops Aggregate: $2 million
Surety Bonds
Bid Bond Penalty: 10-20% of bid amount
Performance Bond: 100% of contract price
Payment Bond: 100% of contract price
Miller Act: Federal projects over $150,000
TIME PERIODS - MEMORIZE ALL!
Days What It Means
3 days Workers comp waiting period before benefits begin
7 days If disability exceeds 7 days, workers comp paid
, Days What It Means
retroactively from day 1
10 days • Life insurance free look period (Texas)• Cancellation
notice for nonpayment• Premium finance company
notice before cancellation
15 days Texas insurers must acknowledge claims within 15
days
30 days • NFIP (flood) waiting period• Medicare supplement
free look (Texas)• Notice before nonrenewal• Crime
insurance discovery period (minimum)
60 days • Replacement policy notice• Vacancy provision
(coverage restricted after 60 days)• First 60 days =
insurer can cancel for any reason
91 days Temporary emergency license duration
HOMEOWNERS POLICIES - KNOW THE DIFFERENCES
Policy Dwelling Personal Property Who It’s For
HO-3 Open Perils Named Perils Most common
(80% of policies)
HO-5 Open Perils Open Perils High-value homes
HO-6 Walls-in Named Perils Condo owners
HO-8 Named Perils Named Perils Older homes
(ACV)
COMMERCIAL PROPERTY FORMS
Form Type Coverage
CP 10 10 Basic 11 named perils (most
restrictive)
CP 10 20 Broad More named perils
CP 10 30 Special Open perils (MOST
COMPREHENSIVE)
AUTO COVERAGE - QUICK REFERENCE
Collision: Covers YOUR vehicle when you hit something (regardless of fault)
Comprehensive: Covers YOUR vehicle from fire, theft, vandalism, hail, animals, glass
UM/UIM (Texas): Optional but must be REJECTED IN WRITING PIP: Optional in Texas
(required in no-fault states)
