TEXAS PROPERTY AND CASUALTY
EXAM 2026 ACTUAL EXAM SCRIPT
COMPLETE QUESTIONS AND
VERIFIED ANSWERS GRADE A+
◉ An insured relocated to another state for work. However, she still
owns and insures a house in this state, but has had no one living in it for
3 months. She is also storing some furniture and clothes in the house.
From an insurance standpoint, the insured's house is considered Answer:
Unoccupied
Unoccupancy refers to an insured structure in which no people have
been living or working within the required period of time, but the
structure contains contents.
◉ Individuals in the business of selling construction equipment and
mobile equipment should insure with a/an Answer: Equipment dealers
coverage form
An equipment dealer's coverage form covers a dealer's stock in trade
consisting primarily of mobile agricultural equipment and construction
equipment. It also covers property of others in the dealer's care, custody,
or control. It excludes coverage for autos, motorcycles, aircraft, and
watercraft.
, ◉ All of the following are true regarding deposit premium Answer: It
must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time
the policy is issued that may be adjusted by the audit based on actual
exposures.
◉ Which of the following is NOT an essential element of an insurance
contract? Answer: counteroffer
◉ To purchase insurance, the policyowner must have financial interest
in the property being insured. This is known as Answer: Insurable
Interest
The insured must have an insurable interest in the person or property
covered by an insurance policy. In property insurance, this means the
insured would incur a financial loss if the insured property was
damaged.
EXAM 2026 ACTUAL EXAM SCRIPT
COMPLETE QUESTIONS AND
VERIFIED ANSWERS GRADE A+
◉ An insured relocated to another state for work. However, she still
owns and insures a house in this state, but has had no one living in it for
3 months. She is also storing some furniture and clothes in the house.
From an insurance standpoint, the insured's house is considered Answer:
Unoccupied
Unoccupancy refers to an insured structure in which no people have
been living or working within the required period of time, but the
structure contains contents.
◉ Individuals in the business of selling construction equipment and
mobile equipment should insure with a/an Answer: Equipment dealers
coverage form
An equipment dealer's coverage form covers a dealer's stock in trade
consisting primarily of mobile agricultural equipment and construction
equipment. It also covers property of others in the dealer's care, custody,
or control. It excludes coverage for autos, motorcycles, aircraft, and
watercraft.
, ◉ All of the following are true regarding deposit premium Answer: It
must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time
the policy is issued that may be adjusted by the audit based on actual
exposures.
◉ Which of the following is NOT an essential element of an insurance
contract? Answer: counteroffer
◉ To purchase insurance, the policyowner must have financial interest
in the property being insured. This is known as Answer: Insurable
Interest
The insured must have an insurable interest in the person or property
covered by an insurance policy. In property insurance, this means the
insured would incur a financial loss if the insured property was
damaged.
