Property and Casualty Exam – Texas | Study
Guide Updated Exam 2026 WITH Recent Newest
Verified And Well Analyzed Exam Questions
(Actual Exam 2026-2027) Correct Detailed &
Verified ANSWERS (100% Accurate Solutions)
ALREADY GRADED A+||NEWEST VERSION Of
The Exam Guarantee Pass!!
____ ____ ____ is replacement cost minus depreciation. - ANSWERS-actual cash
value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - ANSWERS-Negligence
_______ is the failure to act as a reasonable person would in the same set of
circumstances - ANSWERS-negligence
an _____ happens over a period of time - ANSWERS-Occurrence
a _____ may be oral or written - ANSWERS-binder
a _____ provides coverage until the policy is issued. it includes all coverages provided
by the policy. - ANSWERS-binder
a ____ is a literal truth - ANSWERS-warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner
are _______ - true to the best of their knowledge - ANSWERS-representation
,______ is an omission of a material fact. - ANSWERS-concealment
the insurer has the right to sue a negligent third party for damages paid to an insured
under the concept of ______ - ANSWERS-subrogation
four parts of a policy - ANSWERS-DICE (declarations, insuring agreement, conditions,
and exclusions)
the ______ list the named insured, policy limits, and premium and policy period -
ANSWERS-declarations
the ____ __ ____ are found on the declaration page of the policy - ANSWERS-limits of
liability
the _______ _______ describes the coverages provided - ANSWERS-insuring
agreement
the _______ list the obligations of both parties, the insurer and the insured -
ANSWERS-conditions
the ______ list the perils that are not covered - ANSWERS-exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide
coverage, the claim will go to _____ - ANSWERS-arbitration
in _____ each party pays for one and a half persons involved - ANSWERS-arbitration
in arbitration there are _____ arbitrators - ANSWERS-three
the cancellation provisions are found in the ________ section of the policy -
ANSWERS-conditions
,the insured must promptly tell the insurer about a ______ - ANSWERS-claim
the other insurance clause is also known as the ____-____ _____ _______ -
ANSWERS-pro-rata liability clause
_____-____ does not mean equal, it is proportionate - ANSWERS-pro-rata
the _____ _____ _____ act protects consumers against the circulation of inaccurate or
obsolete personal or financial information. - ANSWERS-fair credit reporting act
____ is uncertainty of loss - ANSWERS-risk
____ is a transfer of risk from the insured to the insurer - ANSWERS-insurance
____ risk means there is no chance of gain. It is insurable. - ANSWERS-pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - ANSWERS-
speculative
a ____ is something that increases the risk. - ANSWERS-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 -
ANSWERS-indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to
provide coverage. - ANSWERS-insurable interest
the law of _____ _____ is used to predict the likelihood of loss - ANSWERS-large
numbers
, the ____-____-____ act requires that a customer be given out a privacy notice at the
time the customer relationship is initially established and thereafter annually. -
ANSWERS-gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only - ANSWERS-terrorism
risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils
insured against - ANSWERS-dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an
endorsement known as a _____ ______ ______ for an additional premium charge -
ANSWERS-personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and
flood but not _____ - ANSWERS-wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a
_____ _____ - ANSWERS-private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - ANSWERS-
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on - ANSWERS-
freezing of plumbing
the _____ on which the insured dwelling sits on is not insurable - ANSWERS-land
_____ _____, also known as the automatic increase endorsement, must be added to a
DP policy by endorsement - ANSWERS-inflation guard
Guide Updated Exam 2026 WITH Recent Newest
Verified And Well Analyzed Exam Questions
(Actual Exam 2026-2027) Correct Detailed &
Verified ANSWERS (100% Accurate Solutions)
ALREADY GRADED A+||NEWEST VERSION Of
The Exam Guarantee Pass!!
____ ____ ____ is replacement cost minus depreciation. - ANSWERS-actual cash
value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - ANSWERS-Negligence
_______ is the failure to act as a reasonable person would in the same set of
circumstances - ANSWERS-negligence
an _____ happens over a period of time - ANSWERS-Occurrence
a _____ may be oral or written - ANSWERS-binder
a _____ provides coverage until the policy is issued. it includes all coverages provided
by the policy. - ANSWERS-binder
a ____ is a literal truth - ANSWERS-warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner
are _______ - true to the best of their knowledge - ANSWERS-representation
,______ is an omission of a material fact. - ANSWERS-concealment
the insurer has the right to sue a negligent third party for damages paid to an insured
under the concept of ______ - ANSWERS-subrogation
four parts of a policy - ANSWERS-DICE (declarations, insuring agreement, conditions,
and exclusions)
the ______ list the named insured, policy limits, and premium and policy period -
ANSWERS-declarations
the ____ __ ____ are found on the declaration page of the policy - ANSWERS-limits of
liability
the _______ _______ describes the coverages provided - ANSWERS-insuring
agreement
the _______ list the obligations of both parties, the insurer and the insured -
ANSWERS-conditions
the ______ list the perils that are not covered - ANSWERS-exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide
coverage, the claim will go to _____ - ANSWERS-arbitration
in _____ each party pays for one and a half persons involved - ANSWERS-arbitration
in arbitration there are _____ arbitrators - ANSWERS-three
the cancellation provisions are found in the ________ section of the policy -
ANSWERS-conditions
,the insured must promptly tell the insurer about a ______ - ANSWERS-claim
the other insurance clause is also known as the ____-____ _____ _______ -
ANSWERS-pro-rata liability clause
_____-____ does not mean equal, it is proportionate - ANSWERS-pro-rata
the _____ _____ _____ act protects consumers against the circulation of inaccurate or
obsolete personal or financial information. - ANSWERS-fair credit reporting act
____ is uncertainty of loss - ANSWERS-risk
____ is a transfer of risk from the insured to the insurer - ANSWERS-insurance
____ risk means there is no chance of gain. It is insurable. - ANSWERS-pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - ANSWERS-
speculative
a ____ is something that increases the risk. - ANSWERS-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 -
ANSWERS-indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to
provide coverage. - ANSWERS-insurable interest
the law of _____ _____ is used to predict the likelihood of loss - ANSWERS-large
numbers
, the ____-____-____ act requires that a customer be given out a privacy notice at the
time the customer relationship is initially established and thereafter annually. -
ANSWERS-gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only - ANSWERS-terrorism
risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils
insured against - ANSWERS-dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an
endorsement known as a _____ ______ ______ for an additional premium charge -
ANSWERS-personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and
flood but not _____ - ANSWERS-wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a
_____ _____ - ANSWERS-private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - ANSWERS-
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on - ANSWERS-
freezing of plumbing
the _____ on which the insured dwelling sits on is not insurable - ANSWERS-land
_____ _____, also known as the automatic increase endorsement, must be added to a
DP policy by endorsement - ANSWERS-inflation guard
