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InsTX-PCRM92 Property and Casualty Risk
Manager (English) Exam Questions & Answers
VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR
InsTX-PCRM92 Property and Casualty Risk Manager (English) Exam
Exam Overview & Coverage Summary
The InsTX-PCRM92 exam is a specialized Texas licensing examination for individuals seeking to
operate as Risk Managers . It is administered by Pearson VUE for the Texas Department of
Insurance .
Based on the official content outline from Pearson VUE, the exam covers the following
weighted domains :
Domain Percentage
Insurance Regulation 7%
General Insurance 7%
Property and Casualty Insurance Basics 9%
Risk Management 20%
Auto Insurance 11%
Commercial Package Policy (CPP) 15%
Businessowners Policy 5%
Workers Compensation Insurance 12%
Other Coverages & Topics 14%
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Exam Details:
• Exam Code: InsTX-PCRM92
• Number of Questions: 100
• Time Limit: 2 hours
• Passing Score: 70% (as per standard Texas insurance exam guidelines)
Practice Exam Questions
Note: The following questions are designed based on the Texas Department of Insurance exam
content outline. While they may not be verbatim actual test questions, they cover the key
concepts and areas tested on the InsTX-PCRM92 exam .
Domain 1: Risk Management
1. Which step in the risk management process involves evaluating the potential severity and
frequency of potential losses and reviewing the effectiveness of current risk treatments?
A) Risk Identification
B) Risk Analysis
C) Risk Treatment Selection
D) Monitoring and Review
Answer: B) Risk analysis is the second step in the risk management process where the risk
manager evaluates the potential severity and frequency of identified loss exposures. This
includes understanding the organization's existing risk treatments and insurance policies .
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2. A manufacturing company decides to install a sprinkler system in its warehouse to reduce
the potential for fire damage. This is an example of which risk management technique?
A) Avoidance
B) Retention
C) Reduction
D) Transfer
Answer: C) Risk reduction (or loss prevention/control) involves actions taken to decrease the
frequency or severity of losses. Installing a sprinkler system is a classic example of loss
prevention .
3. A construction company enters into a contract that requires a subcontractor to be
responsible for any injuries to the subcontractor's employees. This is an example of:
A) Risk Retention
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B) Risk Sharing
C) Contractual Transfer
D) Duplication
Answer: C) Contractual transfer is a risk financing technique where the financial consequences
of a risk are shifted to another party through a legal agreement .
4. Which of the following is considered a pure risk?
A) Investing in the stock market
B) Opening a new business
C) The risk of a fire damaging a warehouse
D) Developing a new product
Answer: C) Pure risk involves only the possibility of loss or no loss (e.g., fire, theft, or natural
disaster). Speculative risk involves the possibility of either a loss or a gain .
InsTX-PCRM92 Property and Casualty Risk
Manager (English) Exam Questions & Answers
VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR
InsTX-PCRM92 Property and Casualty Risk Manager (English) Exam
Exam Overview & Coverage Summary
The InsTX-PCRM92 exam is a specialized Texas licensing examination for individuals seeking to
operate as Risk Managers . It is administered by Pearson VUE for the Texas Department of
Insurance .
Based on the official content outline from Pearson VUE, the exam covers the following
weighted domains :
Domain Percentage
Insurance Regulation 7%
General Insurance 7%
Property and Casualty Insurance Basics 9%
Risk Management 20%
Auto Insurance 11%
Commercial Package Policy (CPP) 15%
Businessowners Policy 5%
Workers Compensation Insurance 12%
Other Coverages & Topics 14%
,Page 2 of 126
Exam Details:
• Exam Code: InsTX-PCRM92
• Number of Questions: 100
• Time Limit: 2 hours
• Passing Score: 70% (as per standard Texas insurance exam guidelines)
Practice Exam Questions
Note: The following questions are designed based on the Texas Department of Insurance exam
content outline. While they may not be verbatim actual test questions, they cover the key
concepts and areas tested on the InsTX-PCRM92 exam .
Domain 1: Risk Management
1. Which step in the risk management process involves evaluating the potential severity and
frequency of potential losses and reviewing the effectiveness of current risk treatments?
A) Risk Identification
B) Risk Analysis
C) Risk Treatment Selection
D) Monitoring and Review
Answer: B) Risk analysis is the second step in the risk management process where the risk
manager evaluates the potential severity and frequency of identified loss exposures. This
includes understanding the organization's existing risk treatments and insurance policies .
,Page 3 of 126
2. A manufacturing company decides to install a sprinkler system in its warehouse to reduce
the potential for fire damage. This is an example of which risk management technique?
A) Avoidance
B) Retention
C) Reduction
D) Transfer
Answer: C) Risk reduction (or loss prevention/control) involves actions taken to decrease the
frequency or severity of losses. Installing a sprinkler system is a classic example of loss
prevention .
3. A construction company enters into a contract that requires a subcontractor to be
responsible for any injuries to the subcontractor's employees. This is an example of:
A) Risk Retention
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B) Risk Sharing
C) Contractual Transfer
D) Duplication
Answer: C) Contractual transfer is a risk financing technique where the financial consequences
of a risk are shifted to another party through a legal agreement .
4. Which of the following is considered a pure risk?
A) Investing in the stock market
B) Opening a new business
C) The risk of a fire damaging a warehouse
D) Developing a new product
Answer: C) Pure risk involves only the possibility of loss or no loss (e.g., fire, theft, or natural
disaster). Speculative risk involves the possibility of either a loss or a gain .
