TX-PC06 General Lines - Property & Casualty Study Guide
Qs & Ans.
Who receives the broadest coverage of all people listed in the policy?
named insured
In property insurance, who is listed as Additional Insured?
a mortgagee or leinholder
When a person is restored to the same financial condition as before the loss, this is called?
indemnity
If a person with a property policy is given an amount of money after a loss which will buy
another property of equal value, this would be called?
Indemnity
When the insurer considers depreciation in the settling of a loss, this is known as?
Principal of Indemnity
What does it mean to be a Named Insured in a property policy?
anyone listed in the policy
What is the principle that requires the insured to suffer financially in the event of a loss in order
to obtain insurance and collect claim payment?
Insurable Interest
,Insurable interest must exist when?
at the time of loss
Exposure to the same harmful conditions over a period of time leading to a loss
occurrence
What is it called when a policy is ended before the expiration date?
cancellation
What is it called when a policy is ended at the expiration date?
non-renewal
What is a written or verbal agreement showing certain amounts of coverage are in force on a
specified date as temporary proof of insurance?
binder
What is a policy form used to revise coverage in an in-force property or casualty policy?
endorsement
,What is a claims dispute resolution method designed to settle a question of coverage?
arbitration
What is a claims dispute resolution method designed to settle a question about the amount of
claim payout?
appraisal
What condition applies when the insured and the insurer can't agree on the value of a loss?
appraisal
Who is the current Commissioner of Insurance in Texas (in 2025)?
Cassie Brown
How does a person become the Commissioner of Insurance?
he/she is appointed by the Governor
Which of these is a power of the Commissioner of Insurance in Texas?
a. makes and sets insurance laws
b. prosecutes insurance violations
c. enforces insurance rules and law
, d. sentences violators to jail or prison
c. enforces insurance rules and law
Who approves insurance company endorsements?
Texas Commissioner of Insurance
Who is not allowed to request information about fraudulent claims?
insured
How often does the Texas Department of Insurance examine the books and records of each
admitted insurer?
once every 5 years
A required fund set up by the insurer for the protection of its policyholders
reinsurance reserves
What is a domestic insurer?
An insurer whose home office is in Texas or is incorporated in Texas.
What is a foreign insurer?
Qs & Ans.
Who receives the broadest coverage of all people listed in the policy?
named insured
In property insurance, who is listed as Additional Insured?
a mortgagee or leinholder
When a person is restored to the same financial condition as before the loss, this is called?
indemnity
If a person with a property policy is given an amount of money after a loss which will buy
another property of equal value, this would be called?
Indemnity
When the insurer considers depreciation in the settling of a loss, this is known as?
Principal of Indemnity
What does it mean to be a Named Insured in a property policy?
anyone listed in the policy
What is the principle that requires the insured to suffer financially in the event of a loss in order
to obtain insurance and collect claim payment?
Insurable Interest
,Insurable interest must exist when?
at the time of loss
Exposure to the same harmful conditions over a period of time leading to a loss
occurrence
What is it called when a policy is ended before the expiration date?
cancellation
What is it called when a policy is ended at the expiration date?
non-renewal
What is a written or verbal agreement showing certain amounts of coverage are in force on a
specified date as temporary proof of insurance?
binder
What is a policy form used to revise coverage in an in-force property or casualty policy?
endorsement
,What is a claims dispute resolution method designed to settle a question of coverage?
arbitration
What is a claims dispute resolution method designed to settle a question about the amount of
claim payout?
appraisal
What condition applies when the insured and the insurer can't agree on the value of a loss?
appraisal
Who is the current Commissioner of Insurance in Texas (in 2025)?
Cassie Brown
How does a person become the Commissioner of Insurance?
he/she is appointed by the Governor
Which of these is a power of the Commissioner of Insurance in Texas?
a. makes and sets insurance laws
b. prosecutes insurance violations
c. enforces insurance rules and law
, d. sentences violators to jail or prison
c. enforces insurance rules and law
Who approves insurance company endorsements?
Texas Commissioner of Insurance
Who is not allowed to request information about fraudulent claims?
insured
How often does the Texas Department of Insurance examine the books and records of each
admitted insurer?
once every 5 years
A required fund set up by the insurer for the protection of its policyholders
reinsurance reserves
What is a domestic insurer?
An insurer whose home office is in Texas or is incorporated in Texas.
What is a foreign insurer?
