TEXAS INSURANCE LICENSE EXAM
2025 QUESTIONS AND ANSWERS
Unless otherwise stated by the policy, property covered by the Building and Personal Property
Coverage Form is valued on what basis? - ANS Actual cash value
Under a Commercial General Liability policy, all of the following statements about the
supplemental extended reporting period are correct, except: - ANS The insurer may cancel
the SERP after the insured pays the premium
Which of the following statements is correct regarding PIP coverage in Texas? - ANS PIP
coverage covers insureds and their guests without regard to fault or to coordination of benefits
Which of the following statements regarding types of property loss is incorrect? - ANS Direct
losses include additional living expenses
What is the maximum amount supplementary payments coverage provided by a Business Auto
policy will pay for the cost of bail bonds related to a covered accident? - ANS $2,000
Under a Business Auto policy, which of the following statements about towing coverage
provided under the policy's physical damage coverage is correct? - ANS Labor must be
performed at the place of disablement to be covered
Commercial Crime insurance policies are typically able to cover losses resulting from all of the
following, except: - ANS The mysterious disappearance of property
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, An insured with a Personal Auto policy on their car is using a non-owned auto to run errands.
Under the insured's policy, liability coverage for use of the non-owned auto is: -
ANS Provided on an excess basis
After unintentionally running a red light, L causes an accident with T. T's sedan is badly
damaged, and T's arm is broken. A few months after the accident, T brings a suit against L,
asking for damages for medical costs incurred for the broken arm and other injuries sustained
in the accident. Under Part A of L's Personal Auto policy, supplementary payments in
connection with the insurer's defense will: - ANS Be paid in addition to the policy's liability
limits
All of the following are common law defenses against negligence, except: - ANS Statute of
limitations
Under Coverage C - Household Personal Property on a Farm Property policy, coverage is
provided for: - ANS Furniture in the dwelling
Which of the following must participate in a Workers' Compensation Assigned Risk Plan? -
ANS Insurers that are authorized to write Workers' Compensation in the voluntary market
A company that sells mobile equipment has its stock protected under an Equipment Dealers
Floater. Records of the company's business, including itemized inventories and sales records,
must be retained for at least how long after the policy ends? - ANS 3 years
Which is true of Coverage C of the Dwelling Policy? - ANS Coverage C provides coverage for
the personal property of a guest
After a building loss, the insured on a Businessowners policy incurs extra expenses to minimize
the suspension of business. Extra expense coverage is provided during the period of restoration
and for up to: - ANS 12 months after the direct physical loss
J owns a home protected by a property insurance policy. A severe windstorm creates an
opening in the roof that exposes the upstairs guest suite in J's home and causes rain damage to
the carpet. In order to collect claim payments from the carrier for the damaged roof and carpet,
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
2025 QUESTIONS AND ANSWERS
Unless otherwise stated by the policy, property covered by the Building and Personal Property
Coverage Form is valued on what basis? - ANS Actual cash value
Under a Commercial General Liability policy, all of the following statements about the
supplemental extended reporting period are correct, except: - ANS The insurer may cancel
the SERP after the insured pays the premium
Which of the following statements is correct regarding PIP coverage in Texas? - ANS PIP
coverage covers insureds and their guests without regard to fault or to coordination of benefits
Which of the following statements regarding types of property loss is incorrect? - ANS Direct
losses include additional living expenses
What is the maximum amount supplementary payments coverage provided by a Business Auto
policy will pay for the cost of bail bonds related to a covered accident? - ANS $2,000
Under a Business Auto policy, which of the following statements about towing coverage
provided under the policy's physical damage coverage is correct? - ANS Labor must be
performed at the place of disablement to be covered
Commercial Crime insurance policies are typically able to cover losses resulting from all of the
following, except: - ANS The mysterious disappearance of property
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 1
, An insured with a Personal Auto policy on their car is using a non-owned auto to run errands.
Under the insured's policy, liability coverage for use of the non-owned auto is: -
ANS Provided on an excess basis
After unintentionally running a red light, L causes an accident with T. T's sedan is badly
damaged, and T's arm is broken. A few months after the accident, T brings a suit against L,
asking for damages for medical costs incurred for the broken arm and other injuries sustained
in the accident. Under Part A of L's Personal Auto policy, supplementary payments in
connection with the insurer's defense will: - ANS Be paid in addition to the policy's liability
limits
All of the following are common law defenses against negligence, except: - ANS Statute of
limitations
Under Coverage C - Household Personal Property on a Farm Property policy, coverage is
provided for: - ANS Furniture in the dwelling
Which of the following must participate in a Workers' Compensation Assigned Risk Plan? -
ANS Insurers that are authorized to write Workers' Compensation in the voluntary market
A company that sells mobile equipment has its stock protected under an Equipment Dealers
Floater. Records of the company's business, including itemized inventories and sales records,
must be retained for at least how long after the policy ends? - ANS 3 years
Which is true of Coverage C of the Dwelling Policy? - ANS Coverage C provides coverage for
the personal property of a guest
After a building loss, the insured on a Businessowners policy incurs extra expenses to minimize
the suspension of business. Extra expense coverage is provided during the period of restoration
and for up to: - ANS 12 months after the direct physical loss
J owns a home protected by a property insurance policy. A severe windstorm creates an
opening in the roof that exposes the upstairs guest suite in J's home and causes rain damage to
the carpet. In order to collect claim payments from the carrier for the damaged roof and carpet,
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
