TEXAS PROPERTY AND CASUALTY LICENSING EXAM 2025 ACTUAL
EXAM COMPLETE 106 QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% GUARANTED TO PASS) / ALREADY GRADED A+
Property vs Casualty: What is considered property? -CORRECT ANSWERStructure &
Personal Property
Property vs Casualty: What is considered casualty? -CORRECT ANSWERNon-property
losses. Legal liability to others. 3rd Party
Risk -CORRECT ANSWERuncertainty of financial loss
Pure Risk -CORRECT ANSWERChance of Loss
Speculative Risk -CORRECT ANSWERChance of Loss or Gain (Gamble)
Insurance (covers which type of risk?) -CORRECT ANSWERPure Risk Only
How does the law of large numbers apply in insurance? -CORRECT ANSWERActuaries use
the law of large numbers to estimate claims
What is the law of large numbers? -CORRECT ANSWERas the number of a similar loss
exposure increases, the more accurate claims can be predicted from the group.
What is a peril? -CORRECT ANSWERcause of loss
, What is a hazard? -CORRECT ANSWERthings that increase the chance of a peril happening
Three types of hazards -CORRECT ANSWERPhysical: visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause -CORRECT ANSWERFirst cause in an unbroken chain of events
Elements of a legal contract (CALC) -CORRECT ANSWERC - Competent parties (18/Right
frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? -CORRECT ANSWERInformation believed to be true.
What is misrepresentation? -CORRECT ANSWERInformation that is not true. False
information.
What is material misrepresentation? -CORRECT ANSWERInformation that is not true but
would have caused the insurer not to issue the policy. (4 prev spd tix)
What is fraud? -CORRECT ANSWERAn all out effort by one party to deceive and cheat the
other.
What is warranty? -CORRECT ANSWERGuarantee that an insured will or will not do
something
EXAM COMPLETE 106 QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% GUARANTED TO PASS) / ALREADY GRADED A+
Property vs Casualty: What is considered property? -CORRECT ANSWERStructure &
Personal Property
Property vs Casualty: What is considered casualty? -CORRECT ANSWERNon-property
losses. Legal liability to others. 3rd Party
Risk -CORRECT ANSWERuncertainty of financial loss
Pure Risk -CORRECT ANSWERChance of Loss
Speculative Risk -CORRECT ANSWERChance of Loss or Gain (Gamble)
Insurance (covers which type of risk?) -CORRECT ANSWERPure Risk Only
How does the law of large numbers apply in insurance? -CORRECT ANSWERActuaries use
the law of large numbers to estimate claims
What is the law of large numbers? -CORRECT ANSWERas the number of a similar loss
exposure increases, the more accurate claims can be predicted from the group.
What is a peril? -CORRECT ANSWERcause of loss
, What is a hazard? -CORRECT ANSWERthings that increase the chance of a peril happening
Three types of hazards -CORRECT ANSWERPhysical: visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause -CORRECT ANSWERFirst cause in an unbroken chain of events
Elements of a legal contract (CALC) -CORRECT ANSWERC - Competent parties (18/Right
frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? -CORRECT ANSWERInformation believed to be true.
What is misrepresentation? -CORRECT ANSWERInformation that is not true. False
information.
What is material misrepresentation? -CORRECT ANSWERInformation that is not true but
would have caused the insurer not to issue the policy. (4 prev spd tix)
What is fraud? -CORRECT ANSWERAn all out effort by one party to deceive and cheat the
other.
What is warranty? -CORRECT ANSWERGuarantee that an insured will or will not do
something
