CHAPTER 1. Property and Casualty Exam
Texas Terms & Definitions
Covered in this Exam
This Exam Contains 80 Terms & Complete Definitions, focusing on fundamental
insurance concepts, contract law, policy provisions, risk management, and
essential Texas-specific laws, covering everything from basic terminology (like
speculative vs. pure risk,) to specific statutes such as the Jones Act or Motor
Carrier Act. It's the foundational part of the exam, building up to more detailed
state regulations in subsequent sections, testing your understanding of core P&C
principles and how they apply in Texas (Ultimate Guide for YR. 2026/2027)
Quiz_________________?
INSURANCE -
Answer☑️
The method of spreading the risk of a financial loss among a large
number of people. When spreading the risk reduces the financial
impact of an individual loss.
Quiz_________________?
INSURANCE COMPANY -
Answer☑️
entity that agrees to indemnify (make financially whole again)
Insureds against covered losses
Quiz_________________?
PROPERTY -
Answer☑️
,Various types of insurance designed to insure property from
financial loss. D.H.C.I.O.C
1.Dwelling
2.Homeowners
3.Commerical Property
4.Inland marine
5.Ocean marine
6.Crime
Quiz_________________?
Actuaries -
Answer☑️
1.insurance statistician: a statistician who calculates insurance
premiums, risks, dividends, and annuity rates
Quiz_________________?
CASULTY INSURANCE -
Answer☑️
Protects you against liabilty for BODILY INJURY (BI) and
PROPERTY DAMAGE (PD)
Quiz_________________?
LIABILITY OR CASUALTY COVERAGE -
Answer☑️
Will pay for accidental damage you cause to another person or
their property. There are three parties to Liability insurance
contract.
1.you
2.your insurance company
3.the injured party
, Quiz_________________?
PERSONAL LINES INSURANCE -
Answer☑️
Property and casualty insurance for an individual. Policies include
Property and Casualty coverages.
Quiz_________________?
COMMERCIAL LINES INSURANCE -
Answer☑️
Refers to property and casualty insurance to cover a BUSINESS
as opposed to personal lines
Quiz_________________?
PURCHASING INSURANCE -
Answer☑️
The money you pay in exchange for insurance coverage is known
as the CONSIDERATION. It is also the PREMIUM, and the
statements you make in the application along with the payment of
the initial premium are part of the consideration.
Quiz_________________?
DEDUCTIBLE -
Answer☑️
Portion of covered loss that is not paid by the insurance
company.The company will pay for the remaining portion up to the
policy limits. The higher the deductible, the lower premium.
Quiz_________________?
BINDER -
Texas Terms & Definitions
Covered in this Exam
This Exam Contains 80 Terms & Complete Definitions, focusing on fundamental
insurance concepts, contract law, policy provisions, risk management, and
essential Texas-specific laws, covering everything from basic terminology (like
speculative vs. pure risk,) to specific statutes such as the Jones Act or Motor
Carrier Act. It's the foundational part of the exam, building up to more detailed
state regulations in subsequent sections, testing your understanding of core P&C
principles and how they apply in Texas (Ultimate Guide for YR. 2026/2027)
Quiz_________________?
INSURANCE -
Answer☑️
The method of spreading the risk of a financial loss among a large
number of people. When spreading the risk reduces the financial
impact of an individual loss.
Quiz_________________?
INSURANCE COMPANY -
Answer☑️
entity that agrees to indemnify (make financially whole again)
Insureds against covered losses
Quiz_________________?
PROPERTY -
Answer☑️
,Various types of insurance designed to insure property from
financial loss. D.H.C.I.O.C
1.Dwelling
2.Homeowners
3.Commerical Property
4.Inland marine
5.Ocean marine
6.Crime
Quiz_________________?
Actuaries -
Answer☑️
1.insurance statistician: a statistician who calculates insurance
premiums, risks, dividends, and annuity rates
Quiz_________________?
CASULTY INSURANCE -
Answer☑️
Protects you against liabilty for BODILY INJURY (BI) and
PROPERTY DAMAGE (PD)
Quiz_________________?
LIABILITY OR CASUALTY COVERAGE -
Answer☑️
Will pay for accidental damage you cause to another person or
their property. There are three parties to Liability insurance
contract.
1.you
2.your insurance company
3.the injured party
, Quiz_________________?
PERSONAL LINES INSURANCE -
Answer☑️
Property and casualty insurance for an individual. Policies include
Property and Casualty coverages.
Quiz_________________?
COMMERCIAL LINES INSURANCE -
Answer☑️
Refers to property and casualty insurance to cover a BUSINESS
as opposed to personal lines
Quiz_________________?
PURCHASING INSURANCE -
Answer☑️
The money you pay in exchange for insurance coverage is known
as the CONSIDERATION. It is also the PREMIUM, and the
statements you make in the application along with the payment of
the initial premium are part of the consideration.
Quiz_________________?
DEDUCTIBLE -
Answer☑️
Portion of covered loss that is not paid by the insurance
company.The company will pay for the remaining portion up to the
policy limits. The higher the deductible, the lower premium.
Quiz_________________?
BINDER -
