age 1 of 46
MS Property & Casualty FINAL EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Milton argued with his insurer over a third party claim. They
disagreed as to whether Milton was engaged in a business
pursuit and therefore not covered under his homeowner's policy.
The terms of the exclusion were ambiguous, and could be
interpreted in Milton's favor. Who will likely prevail, Milton or
his insurer? .......Answer.........Milton, because ambiguities in policy
language are interpreted in favor of the party that did not
draft the contract.
Norma advises an insurance applicant that Policy A would be in
his best interests, but Norma has no basis for making this
,age 2 of 46
recommendation. Policy A may or may not be suitable for the
applicant. An agent is required to do all of the following
EXCEPT: .......Answer.........Submit a signed affidavit to the
applicant that the proposed policy is most suitable
Samantha has a life insurance license in Missouri and wants to
sell life insurance part-time in Texas. Which of the following
describes what she can or cannot do given her licenses?
.......Answer.........After submitting an application and application
fee, she will then have the same rights and privileges as a
resident license holder under the principle of reciprocity.
Which of the following licensees works for a person who is
licensed as a property and casualty agent and explains
coverage, describes insurance products and quotes premium
rates? .......Answer.........Insurance service representative
,age 3 of 46
Steven was having lunch with a group of agents when he made
some false statements about a competitor's financial condition in
order to hurt their reputation. In this case, Steven has committed
which of the following acts? .......Answer.........Defamation
Which of the following protects policyholders and claimants of
impaired or insolvent insurers that cannot pay their claims or
benefits? .......Answer.........Texas Property and Casualty Insurance
Guaranty Association
Janet has been continuously licensed as an agent in Texas for
the past 25 years. Her friend Steven is a nonresident licensee in
Texas and every year completes his state's continuing education
requirements. When they ask you for advice on meeting the
Texas continuing education requirements, you inform them that:
.......Answer.........Neither Steve nor Janet needs to comply with
Texas's continuing education requirements
, age 4 of 46
Which of the following statements BEST describes the transfer of
risk via an insurance contract? .......Answer.........Not all risks are
transferable via insurance contracts
Angela cannot obtain a homeowners insurance policy from a
licensed insurance company in Texas. From which entity will she
likely be able to obtain coverage? .......Answer.........Fair Housing
Plan
Kent stated on his application for property insurance that the
roof of the building being insured had been recently replaced.
In fact, the replacement occurred 12 years ago. Kent made a
false statement of a material fact, which is also known as a
.......Answer.........Misrepresentation
The Texas Department of Insurance receives a written complaint
about an insurer that prompts an investigation. The Department
MS Property & Casualty FINAL EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Milton argued with his insurer over a third party claim. They
disagreed as to whether Milton was engaged in a business
pursuit and therefore not covered under his homeowner's policy.
The terms of the exclusion were ambiguous, and could be
interpreted in Milton's favor. Who will likely prevail, Milton or
his insurer? .......Answer.........Milton, because ambiguities in policy
language are interpreted in favor of the party that did not
draft the contract.
Norma advises an insurance applicant that Policy A would be in
his best interests, but Norma has no basis for making this
,age 2 of 46
recommendation. Policy A may or may not be suitable for the
applicant. An agent is required to do all of the following
EXCEPT: .......Answer.........Submit a signed affidavit to the
applicant that the proposed policy is most suitable
Samantha has a life insurance license in Missouri and wants to
sell life insurance part-time in Texas. Which of the following
describes what she can or cannot do given her licenses?
.......Answer.........After submitting an application and application
fee, she will then have the same rights and privileges as a
resident license holder under the principle of reciprocity.
Which of the following licensees works for a person who is
licensed as a property and casualty agent and explains
coverage, describes insurance products and quotes premium
rates? .......Answer.........Insurance service representative
,age 3 of 46
Steven was having lunch with a group of agents when he made
some false statements about a competitor's financial condition in
order to hurt their reputation. In this case, Steven has committed
which of the following acts? .......Answer.........Defamation
Which of the following protects policyholders and claimants of
impaired or insolvent insurers that cannot pay their claims or
benefits? .......Answer.........Texas Property and Casualty Insurance
Guaranty Association
Janet has been continuously licensed as an agent in Texas for
the past 25 years. Her friend Steven is a nonresident licensee in
Texas and every year completes his state's continuing education
requirements. When they ask you for advice on meeting the
Texas continuing education requirements, you inform them that:
.......Answer.........Neither Steve nor Janet needs to comply with
Texas's continuing education requirements
, age 4 of 46
Which of the following statements BEST describes the transfer of
risk via an insurance contract? .......Answer.........Not all risks are
transferable via insurance contracts
Angela cannot obtain a homeowners insurance policy from a
licensed insurance company in Texas. From which entity will she
likely be able to obtain coverage? .......Answer.........Fair Housing
Plan
Kent stated on his application for property insurance that the
roof of the building being insured had been recently replaced.
In fact, the replacement occurred 12 years ago. Kent made a
false statement of a material fact, which is also known as a
.......Answer.........Misrepresentation
The Texas Department of Insurance receives a written complaint
about an insurer that prompts an investigation. The Department
