Texas Property and Casualty Exam 2026-2027
Questions and Answers Graded A+
____ is uncertainty of loss
risk
____ is a transfer of risk from the insured to the insurer
insurance
____ risk means there is no chance of gain. It is insurable.
pure
____ risk means there is a chance of a loss or a gain. It is not insurable.
speculative
a ____ is something that increases the risk.
hazard
,the principle of _____ governs property and casualty policies. It states that the
purpose of the policy is to restore the insured financially to where they were prior
to the loss
indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy
to provide coverage.
insurable interest
the law of _____ _____ is used to predict the likelihood of loss
large numbers
____ ____ ____ is replacement cost minus depreciation.
actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit.
Negligence
_______ is the failure to act as a reasonable person would in the same set of
circumstances
negligence
,an _____ happens over a period of time
Occurrence
a _____ may be oral or written
binder
a _____ provides coverage until the policy is issued. it includes all coverages
provided by the policy.
binder
a ____ is a literal truth
warranty
a _______ is a substantial truth. in insurance, statements of the
applicant/policyowner are _______ - true to the best of their knowledge
representation
______ is an omission of a material fact.
concealment
, the insurer has the right to sue a negligent third party for damages paid to an
insured under the concept of ______
subrogation
four parts of a policy
DICE (declarations, insuring agreement, conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period
declarations
the ____ __ ____ are found on the declaration page of the policy
limits of liability
the _______ _______ describes the coverages provided
insuring agreement
the _______ list the obligations of both parties, the insurer and the insured
conditions
Questions and Answers Graded A+
____ is uncertainty of loss
risk
____ is a transfer of risk from the insured to the insurer
insurance
____ risk means there is no chance of gain. It is insurable.
pure
____ risk means there is a chance of a loss or a gain. It is not insurable.
speculative
a ____ is something that increases the risk.
hazard
,the principle of _____ governs property and casualty policies. It states that the
purpose of the policy is to restore the insured financially to where they were prior
to the loss
indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy
to provide coverage.
insurable interest
the law of _____ _____ is used to predict the likelihood of loss
large numbers
____ ____ ____ is replacement cost minus depreciation.
actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit.
Negligence
_______ is the failure to act as a reasonable person would in the same set of
circumstances
negligence
,an _____ happens over a period of time
Occurrence
a _____ may be oral or written
binder
a _____ provides coverage until the policy is issued. it includes all coverages
provided by the policy.
binder
a ____ is a literal truth
warranty
a _______ is a substantial truth. in insurance, statements of the
applicant/policyowner are _______ - true to the best of their knowledge
representation
______ is an omission of a material fact.
concealment
, the insurer has the right to sue a negligent third party for damages paid to an
insured under the concept of ______
subrogation
four parts of a policy
DICE (declarations, insuring agreement, conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period
declarations
the ____ __ ____ are found on the declaration page of the policy
limits of liability
the _______ _______ describes the coverages provided
insuring agreement
the _______ list the obligations of both parties, the insurer and the insured
conditions
