TEXAS GENERAL LINES PROPERTY &
CASUALTY INSURANCE EXAM 2026 Q&AS +
VERIFIED RATIONALES
This premium study bank features verified multiple-choice
questions, italicized answer keys, and bolded rationales tailored
specifically to the Texas General Lines Property & Casualty
Insurance Exam. The comprehensive layout covers foundational
insurance principles, personal auto policies, commercial
liabilities, and Texas-specific TDI insurance codes. It is
strategically formatted to mirror high-ranking study guides on
major digital marketplaces to guarantee student academic
success.
1. Under Texas insurance law, the Texas
Department of Insurance (TDI) is headed by the
Commissioner of Insurance. How is the
Commissioner appointed?
A) Elected by popular vote for a 4-year term
B) Appointed by the Governor for a 2-year term
C) Appointed by the State Senate for a 4-year
term
D) Elected by the State Legislature annually
Answer: B) Appointed by the Governor for a 2-
year term
Rationale: The Texas Insurance Commissioner
is appointed by the Governor of Texas and
, confirmed by the Texas Senate for a specific
two-year term, expiring on February 1 of each
odd-numbered year.
2. The Commissioner of Insurance must examine
the financial condition of each authorized
domestic insurer at least once every how many
years?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
Answer: C) 5 years
Rationale: Texas law dictates that the Texas
Department of Insurance must conduct a
financial examination of every domestic
insurance company licensed in the state at least
once every 5 years.
3. An agent receives a cease-and-desist order
from the Commissioner for an unfair trade
practice. Within how many days must the agent
request a hearing if they wish to contest the
order?
A) 10 days
B) 15 days
, C) 30 days
D) 45 days
Answer: C) 30 days
Rationale: A person who is affected by a cease-
and-desist order has the right to contest it by
filing a written request for a hearing within 30
days of receiving the order.
4. What is the maximum administrative penalty the
Commissioner can assess against an individual
or entity for a single violation of the Texas
Insurance Code?
A) $1,000
B) $5,000
C) $25,000
D) $50,000
Answer: C) $25,000
Rationale: The Texas Department of Insurance
may impose an administrative penalty up to a
maximum of $25,000 per violation for any
infraction of the state's insurance laws.
5. To obtain a Texas General Lines Property and
Casualty license, an applicant must be at least
how old?
A) 16 years old
, B) 18 years old
C) 21 years old
D) 25 years old
Answer: B) 18 years old
Rationale: An applicant must be at least 18
years of age to be eligible for an insurance
agent license in the state of Texas.
6. How many hours of Continuing Education (CE)
must a licensed Texas General Lines Property
and Casualty agent complete during each 2-
year licensing cycle?
A) 12 hours
B) 24 hours
C) 30 hours
D) 40 hours
Answer: B) 24 hours
Rationale: Texas agents must complete 24
hours of continuing education every two years
to maintain and renew their active insurance
license.
7. Out of the total Continuing Education hours
required for a Texas agent, how many hours
must cover the topic of ethics or consumer
protection?
CASUALTY INSURANCE EXAM 2026 Q&AS +
VERIFIED RATIONALES
This premium study bank features verified multiple-choice
questions, italicized answer keys, and bolded rationales tailored
specifically to the Texas General Lines Property & Casualty
Insurance Exam. The comprehensive layout covers foundational
insurance principles, personal auto policies, commercial
liabilities, and Texas-specific TDI insurance codes. It is
strategically formatted to mirror high-ranking study guides on
major digital marketplaces to guarantee student academic
success.
1. Under Texas insurance law, the Texas
Department of Insurance (TDI) is headed by the
Commissioner of Insurance. How is the
Commissioner appointed?
A) Elected by popular vote for a 4-year term
B) Appointed by the Governor for a 2-year term
C) Appointed by the State Senate for a 4-year
term
D) Elected by the State Legislature annually
Answer: B) Appointed by the Governor for a 2-
year term
Rationale: The Texas Insurance Commissioner
is appointed by the Governor of Texas and
, confirmed by the Texas Senate for a specific
two-year term, expiring on February 1 of each
odd-numbered year.
2. The Commissioner of Insurance must examine
the financial condition of each authorized
domestic insurer at least once every how many
years?
A) 1 year
B) 3 years
C) 5 years
D) 7 years
Answer: C) 5 years
Rationale: Texas law dictates that the Texas
Department of Insurance must conduct a
financial examination of every domestic
insurance company licensed in the state at least
once every 5 years.
3. An agent receives a cease-and-desist order
from the Commissioner for an unfair trade
practice. Within how many days must the agent
request a hearing if they wish to contest the
order?
A) 10 days
B) 15 days
, C) 30 days
D) 45 days
Answer: C) 30 days
Rationale: A person who is affected by a cease-
and-desist order has the right to contest it by
filing a written request for a hearing within 30
days of receiving the order.
4. What is the maximum administrative penalty the
Commissioner can assess against an individual
or entity for a single violation of the Texas
Insurance Code?
A) $1,000
B) $5,000
C) $25,000
D) $50,000
Answer: C) $25,000
Rationale: The Texas Department of Insurance
may impose an administrative penalty up to a
maximum of $25,000 per violation for any
infraction of the state's insurance laws.
5. To obtain a Texas General Lines Property and
Casualty license, an applicant must be at least
how old?
A) 16 years old
, B) 18 years old
C) 21 years old
D) 25 years old
Answer: B) 18 years old
Rationale: An applicant must be at least 18
years of age to be eligible for an insurance
agent license in the state of Texas.
6. How many hours of Continuing Education (CE)
must a licensed Texas General Lines Property
and Casualty agent complete during each 2-
year licensing cycle?
A) 12 hours
B) 24 hours
C) 30 hours
D) 40 hours
Answer: B) 24 hours
Rationale: Texas agents must complete 24
hours of continuing education every two years
to maintain and renew their active insurance
license.
7. Out of the total Continuing Education hours
required for a Texas agent, how many hours
must cover the topic of ethics or consumer
protection?
