TEXAS P&C EXAM - QUICK REFERENCE CHEAT SHEET
Must-Memorize Facts for Exam Day
🔢 CRITICAL NUMBERS TO MEMORIZE
Texas Auto Liability Minimums
25/50/20 - $25,000 bodily injury per person - $50,000 bodily injury per accident
- $20,000 property damage per accident
Homeowners Coverage Percentages
• Coverage A (Dwelling): Base amount you choose
• Coverage B (Other Structures): 10% of Coverage A
• Coverage C (Personal Property): 50% of Coverage A
• Coverage D (Loss of Use): 20-30% of Coverage A
Coinsurance Formula
(Amount Carried ÷ Amount Required) × Loss = Payment - Amount Required = Property
Value × Coinsurance % (usually 80%)
Workers Compensation Limits (Part B - Employers Liability)
$100,000 / $500,000 / $100,000 - $100k bodily injury by accident (each accident) -
$500k bodily injury by disease (policy limit) - $100k bodily injury by disease (each
employee)
CGL Typical Limits
• Per Occurrence: $1 million
• General Aggregate: $2 million
• Products-Completed Ops Aggregate: $2 million
Surety Bonds
• Bid Bond Penalty: 10-20% of bid amount
• Performance Bond: 100% of contract price
• Payment Bond: 100% of contract price
• Miller Act: Federal projects over $150,000
⏰ TIME PERIODS - MEMORIZE ALL!
Days What It Means
3 days Workers comp waiting period before benefits begin
, Days What It Means
7 days If disability exceeds 7 days, workers comp paid retroactively
from day 1
10 days • Life insurance free look period (Texas)• Cancellation notice
for nonpayment• Premium finance company notice before
cancellation
15 days Texas insurers must acknowledge claims within 15 days
30 days • NFIP (flood) waiting period• Medicare supplement free look
(Texas)• Notice before nonrenewal• Crime insurance
discovery period (minimum)
60 days • Replacement policy notice• Vacancy provision (coverage
restricted after 60 days)• First 60 days = insurer can cancel for
any reason
91 days Temporary emergency license duration
🏠 HOMEOWNERS POLICIES - KNOW THE DIFFERENCES
Policy Dwelling Personal Property Who It’s For
HO-3 Open Perils Named Perils Most common (80% of
policies)
HO-5 Open Perils Open Perils High-value homes
HO-6 Walls-in Named Perils Condo owners
HO-8 Named Perils Named Perils Older homes
(ACV)
🏢 COMMERCIAL PROPERTY FORMS
Form Type Coverage
CP 10 10 Basic 11 named perils (most
restrictive)
CP 10 20 Broad More named perils
CP 10 30 Special Open perils (MOST
COMPREHENSIVE)
🚗 AUTO COVERAGE - QUICK REFERENCE
Collision: Covers YOUR vehicle when you hit something (regardless of fault)
Comprehensive: Covers YOUR vehicle from fire, theft, vandalism, hail, animals, glass
UM/UIM (Texas): Optional but must be REJECTED IN WRITING PIP: Optional in Texas
(required in no-fault states)
Must-Memorize Facts for Exam Day
🔢 CRITICAL NUMBERS TO MEMORIZE
Texas Auto Liability Minimums
25/50/20 - $25,000 bodily injury per person - $50,000 bodily injury per accident
- $20,000 property damage per accident
Homeowners Coverage Percentages
• Coverage A (Dwelling): Base amount you choose
• Coverage B (Other Structures): 10% of Coverage A
• Coverage C (Personal Property): 50% of Coverage A
• Coverage D (Loss of Use): 20-30% of Coverage A
Coinsurance Formula
(Amount Carried ÷ Amount Required) × Loss = Payment - Amount Required = Property
Value × Coinsurance % (usually 80%)
Workers Compensation Limits (Part B - Employers Liability)
$100,000 / $500,000 / $100,000 - $100k bodily injury by accident (each accident) -
$500k bodily injury by disease (policy limit) - $100k bodily injury by disease (each
employee)
CGL Typical Limits
• Per Occurrence: $1 million
• General Aggregate: $2 million
• Products-Completed Ops Aggregate: $2 million
Surety Bonds
• Bid Bond Penalty: 10-20% of bid amount
• Performance Bond: 100% of contract price
• Payment Bond: 100% of contract price
• Miller Act: Federal projects over $150,000
⏰ TIME PERIODS - MEMORIZE ALL!
Days What It Means
3 days Workers comp waiting period before benefits begin
, Days What It Means
7 days If disability exceeds 7 days, workers comp paid retroactively
from day 1
10 days • Life insurance free look period (Texas)• Cancellation notice
for nonpayment• Premium finance company notice before
cancellation
15 days Texas insurers must acknowledge claims within 15 days
30 days • NFIP (flood) waiting period• Medicare supplement free look
(Texas)• Notice before nonrenewal• Crime insurance
discovery period (minimum)
60 days • Replacement policy notice• Vacancy provision (coverage
restricted after 60 days)• First 60 days = insurer can cancel for
any reason
91 days Temporary emergency license duration
🏠 HOMEOWNERS POLICIES - KNOW THE DIFFERENCES
Policy Dwelling Personal Property Who It’s For
HO-3 Open Perils Named Perils Most common (80% of
policies)
HO-5 Open Perils Open Perils High-value homes
HO-6 Walls-in Named Perils Condo owners
HO-8 Named Perils Named Perils Older homes
(ACV)
🏢 COMMERCIAL PROPERTY FORMS
Form Type Coverage
CP 10 10 Basic 11 named perils (most
restrictive)
CP 10 20 Broad More named perils
CP 10 30 Special Open perils (MOST
COMPREHENSIVE)
🚗 AUTO COVERAGE - QUICK REFERENCE
Collision: Covers YOUR vehicle when you hit something (regardless of fault)
Comprehensive: Covers YOUR vehicle from fire, theft, vandalism, hail, animals, glass
UM/UIM (Texas): Optional but must be REJECTED IN WRITING PIP: Optional in Texas
(required in no-fault states)
