TEXAS PROPERTY AND CASUALTY
EXAM 2026 ACTUAL TEST PAPER
WITH ACCURATE SOLUTIONS
GRADE A+
◉ which of the following terms is used to describe an empty building
that is not being used?. Answer: Vacant
◉ An insurance company takes possession of a damaged auto it has
covered. when the company becomes the legal owner of the auto, it is
exercising the right of?. Answer: Salvage
◉ all of the following are property coverage forms EXCEPT?
a) special
b)basic
c)broad
d)base. Answer: base
◉ which of the following legal principles allows insurance companies to
collect from a negligent third party damages it paid to an insured?.
Answer: Subrogation
◉ transferring is a method of handling risk. which of the following best
describes the concept of transfer?. Answer: purchasing insurance
,◉ the insured has a named peril policy that covers hail, fire, wind, and
lightning. which one of the following events would be covered?.
Answer: A roof that is damaged in an electrical storm
◉ (TRIPRA) the federal govt's share of compensation that exceeds the
insurer's TRIPRA deductible is. Answer: 80%
◉ why do ins. policies usually define who is considered an insured
under the policy?. Answer: to specify who is covered in addition to the
named insured
◉ the federal govt. is not obligated under the TRIA to make payments
for any portion of losses that exceed how much annually?. Answer: $100
BILLION
◉ in the insurance business, the insurance comp. is also known as the?.
Answer: principle
◉ an insurance company that sells insurance only to people who meet
specific membership requirements is known as what kind of ins. comp?.
Answer: Fraternal
◉ what is the actual cause of a loss?. Answer: peril
◉ the purpose of insurance is to. Answer: Transfer risk
, ◉ a warranty is a statement made by the applicant regarding the risk to
be insured. which of the following statements is NOT true about
warranties?. Answer: A warranty must be refer to a material fact
◉ all of the following are basic ways in which underwriters assign rates
EXCEPT?
a) manual (class) rating
b) judgement rating
c) application rating
d) experience (merit) rating. Answer: c) application rating
◉ Bob has a liability policy in the amount of 300/500/100 how much
coverage does he have per occurrence for property damage liability?.
Answer: 100,000
◉ an insurance binder is best described as. Answer: temporary, short-
term evidence of coverage.
◉ an insured owns a pet lion that is caged on the homeowner's property.
the owner takes great care to warn neighbors of the possible danger by
posting signs, fencing the yard, and locking the cage at all times. when a
neighbor's child manages to open the cage and is bitten, what type of
liability would apply to the lion owner?. Answer: Absolute liability
◉ which of the following risks are insurable?
a) pure
EXAM 2026 ACTUAL TEST PAPER
WITH ACCURATE SOLUTIONS
GRADE A+
◉ which of the following terms is used to describe an empty building
that is not being used?. Answer: Vacant
◉ An insurance company takes possession of a damaged auto it has
covered. when the company becomes the legal owner of the auto, it is
exercising the right of?. Answer: Salvage
◉ all of the following are property coverage forms EXCEPT?
a) special
b)basic
c)broad
d)base. Answer: base
◉ which of the following legal principles allows insurance companies to
collect from a negligent third party damages it paid to an insured?.
Answer: Subrogation
◉ transferring is a method of handling risk. which of the following best
describes the concept of transfer?. Answer: purchasing insurance
,◉ the insured has a named peril policy that covers hail, fire, wind, and
lightning. which one of the following events would be covered?.
Answer: A roof that is damaged in an electrical storm
◉ (TRIPRA) the federal govt's share of compensation that exceeds the
insurer's TRIPRA deductible is. Answer: 80%
◉ why do ins. policies usually define who is considered an insured
under the policy?. Answer: to specify who is covered in addition to the
named insured
◉ the federal govt. is not obligated under the TRIA to make payments
for any portion of losses that exceed how much annually?. Answer: $100
BILLION
◉ in the insurance business, the insurance comp. is also known as the?.
Answer: principle
◉ an insurance company that sells insurance only to people who meet
specific membership requirements is known as what kind of ins. comp?.
Answer: Fraternal
◉ what is the actual cause of a loss?. Answer: peril
◉ the purpose of insurance is to. Answer: Transfer risk
, ◉ a warranty is a statement made by the applicant regarding the risk to
be insured. which of the following statements is NOT true about
warranties?. Answer: A warranty must be refer to a material fact
◉ all of the following are basic ways in which underwriters assign rates
EXCEPT?
a) manual (class) rating
b) judgement rating
c) application rating
d) experience (merit) rating. Answer: c) application rating
◉ Bob has a liability policy in the amount of 300/500/100 how much
coverage does he have per occurrence for property damage liability?.
Answer: 100,000
◉ an insurance binder is best described as. Answer: temporary, short-
term evidence of coverage.
◉ an insured owns a pet lion that is caged on the homeowner's property.
the owner takes great care to warn neighbors of the possible danger by
posting signs, fencing the yard, and locking the cage at all times. when a
neighbor's child manages to open the cage and is bitten, what type of
liability would apply to the lion owner?. Answer: Absolute liability
◉ which of the following risks are insurable?
a) pure
