TEXAS PERSONAL LINES INSURANCE EXAM QUESTIONS WITH
CORRECT ANSWERS 2025/2026
How does the mobilehome endorsement affect the other coverage of law or ordinance in a
homeowners policy? - CORRECT ANSWER -
In insurance, an offer is usually made when - CORRECT ANSWER -An applicant submits an
application to the insurer
Under a personal auto policy, in which of the following locations would a vehicle primarily
garaged in California be covered - CORRECT ANSWER -Any other state
In a personal auto policy, the medical payments coverage is similar to - CORRECT ANSWER -
accident insurance, because it pays medical expenses regardless of fault
The Federal Fair Credit Reporting Act - CORRECT ANSWER -Regulates consumer reports
For a contract to be enforceable by law, the purpose of the contract must be - CORRECT
ANSWER -Legal and not against public policy
In the personal auto policy, owned trailers being towed by an insured auto are automatically
covered for - CORRECT ANSWER -UM coverage
The amount an insurer will pay under Coverage D(loss of use) depends on - CORRECT ANSWER -
The amount of coverage on the dwelling
An insured's house is damaged by a fire and is uninhabitable. AS a result, the insured has to rent
an apartment until repairs are made. A dwlling insurance policy will pay for the expense of
renting the apartment. Which type of broad or special form coverage does the insured have? -
CORRECT ANSWER -coverage E - additional living expense
, All of the following are supplemental payments included in the liability section of a personal
auto policy EXCEPT - CORRECT ANSWER -Up to $100 for the cost to secure the release of a
vehicle from an impoundment lot following a covered accident
Payment for medical expenses, loss of wages, funeral expenses, - CORRECT ANSWER -special-
special damages are tangible damages that can be specifically measured in dollar amounts (such
as out of pocket expenses for medical, miscellaneous expenses, and loss of wages)
A policy that insures all property at multiple locations for a single amount is referred to as -
CORRECT ANSWER -Blanket
All of the following statements describe the concept of strict liability EXCEPT - CORRECT
ANSWER -It is imposed on defendants engaged in hazardous activities
All of the following are conditions commonly found in the insurance policy EXCEPT - CORRECT
ANSWER -Insuring Agreement
What type of information would be found in a policy's insuring agreement? - CORRECT ANSWER
-Renewal Dates
An insurance contract must contain all of the following to be considered legally binding EXCEPT -
CORRECT ANSWER -Beneficiary's consent
In forming an insurance contract, when does acceptance usually occur? - CORRECT ANSWER -
When an insurer's underwriter approves coverage
The other insurance provision that limits the liability of the insurer to a portion of the loss no
greater than the amount the insurer bears to all the insurance covering the property is called -
CORRECT ANSWER -Pro Rata liability
CORRECT ANSWERS 2025/2026
How does the mobilehome endorsement affect the other coverage of law or ordinance in a
homeowners policy? - CORRECT ANSWER -
In insurance, an offer is usually made when - CORRECT ANSWER -An applicant submits an
application to the insurer
Under a personal auto policy, in which of the following locations would a vehicle primarily
garaged in California be covered - CORRECT ANSWER -Any other state
In a personal auto policy, the medical payments coverage is similar to - CORRECT ANSWER -
accident insurance, because it pays medical expenses regardless of fault
The Federal Fair Credit Reporting Act - CORRECT ANSWER -Regulates consumer reports
For a contract to be enforceable by law, the purpose of the contract must be - CORRECT
ANSWER -Legal and not against public policy
In the personal auto policy, owned trailers being towed by an insured auto are automatically
covered for - CORRECT ANSWER -UM coverage
The amount an insurer will pay under Coverage D(loss of use) depends on - CORRECT ANSWER -
The amount of coverage on the dwelling
An insured's house is damaged by a fire and is uninhabitable. AS a result, the insured has to rent
an apartment until repairs are made. A dwlling insurance policy will pay for the expense of
renting the apartment. Which type of broad or special form coverage does the insured have? -
CORRECT ANSWER -coverage E - additional living expense
, All of the following are supplemental payments included in the liability section of a personal
auto policy EXCEPT - CORRECT ANSWER -Up to $100 for the cost to secure the release of a
vehicle from an impoundment lot following a covered accident
Payment for medical expenses, loss of wages, funeral expenses, - CORRECT ANSWER -special-
special damages are tangible damages that can be specifically measured in dollar amounts (such
as out of pocket expenses for medical, miscellaneous expenses, and loss of wages)
A policy that insures all property at multiple locations for a single amount is referred to as -
CORRECT ANSWER -Blanket
All of the following statements describe the concept of strict liability EXCEPT - CORRECT
ANSWER -It is imposed on defendants engaged in hazardous activities
All of the following are conditions commonly found in the insurance policy EXCEPT - CORRECT
ANSWER -Insuring Agreement
What type of information would be found in a policy's insuring agreement? - CORRECT ANSWER
-Renewal Dates
An insurance contract must contain all of the following to be considered legally binding EXCEPT -
CORRECT ANSWER -Beneficiary's consent
In forming an insurance contract, when does acceptance usually occur? - CORRECT ANSWER -
When an insurer's underwriter approves coverage
The other insurance provision that limits the liability of the insurer to a portion of the loss no
greater than the amount the insurer bears to all the insurance covering the property is called -
CORRECT ANSWER -Pro Rata liability
