Personal lines Property & Casualty
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Risk - CORRECT ANSWER - Chance or Uncertainty of a Loss
Peril - CORRECT ANSWER - Possible cause of a loss
2 Years - CORRECT ANSWER - The Commissioner of insurance is appointed by the
governor for a term of ______ ending on February 1 of each odd-numbered year?
5 Years - CORRECT ANSWER - The Commissioner of insurance MUST have ________
of experience in business or government.
$50,000 - CORRECT ANSWER - The Commissioner of insurance must provide a
__________ surety bond. (A surety bond guarantees performance)
$500,000 - CORRECT ANSWER - The Commissioner of insurance requires state fees in
excess of _____________ to be submitted by electronic transfer.
15 Days - CORRECT ANSWER - The Commissioner of insurance requires that persons
must respond to commissioner inquires within_______ ?
20 Days - CORRECT ANSWER - Response from alleged violator must be within ______
of receipt?
14 Days - CORRECT ANSWER - Department must send notice of violation within _____
of finding?
,$25,000 - CORRECT ANSWER - Maximum penalty for insurance code violations?
18 Years Old - CORRECT ANSWER - Minimum age for a license?
5 years - CORRECT ANSWER - The waiting period to reapply if license is denied or
revoked?
90 Days - CORRECT ANSWER - An Emergency License is valid for up to ___?
90 Days - CORRECT ANSWER - An Emergency license may be renewed an additional
____?
90 Days - CORRECT ANSWER - A temporary license is valid for up to ___?
2 years - CORRECT ANSWER - Business entity agent licenses are renewed every ______
after the license is issued?
1 Year - CORRECT ANSWER - If the license is expired for more than _______ all
requirements for a new license (including the exam) must be met?
90 Days - CORRECT ANSWER - If a license has been expires for _________ or less, it
may be renewed by paying the renewal fee plus a 50% penalty.
90 Days - CORRECT ANSWER - A license expired more than ______ but less than one
year cannot be renewed; a new license maybe issued with no exam upon payment of license fee
& penalty fee?
Monthly Basis - CORRECT ANSWER - Change in address, felony convictions, or
administrative actions must be reported to the commissioner on a __________?
,24 Hours - CORRECT ANSWER - Total continuing education requirements?
2 Hours - CORRECT ANSWER - Ethics & consumer protection continuing education
requirement?
3 hours - CORRECT ANSWER - Flood insurance requires _____ certification course?
4 years - CORRECT ANSWER - Continuing education records must be kept for _____?
25% - CORRECT ANSWER - At least ____ of annual premiums must be derived from
persons other than the applicant, applicants family, & applicants business associates.
60 Days - CORRECT ANSWER - Approval of Rate & forms must be filed _____ before
use?
30 Days - CORRECT ANSWER - Binders must be replaced by the insurance policy
within ____?
$15 million - CORRECT ANSWER - Surplus lines insurer's capital & surplus must be at
least ______?
30 Days - CORRECT ANSWER - Suspected fraudulent acts must be reported to the
commissioner or law enforcement within _____?
10 Days - CORRECT ANSWER - ______ in advance for Homeowners Insurance
cancellation?
6 months - CORRECT ANSWER - Texas FAIR (Fair Access to Insurance requirements)
provides residential property insurance when coverage is unavailable in other markets or when
there has been no insurance on the property in the past ______?
, 30 Days - CORRECT ANSWER - _________ in advance for a Nonrenewal?
$60,000 - CORRECT ANSWER - Bodily injury or death of 2 or more people _____?
$25,000 - CORRECT ANSWER - Property damage per accident?
30/60/25 - CORRECT ANSWER - Minimum liability in Texas ($30,000 per person for
bodily injury, $60,000 per accident for bodily injury, $25,000 for property damage of others)
$30,000 - CORRECT ANSWER - Bodily injury or death of any 1 person?
$2,500 - CORRECT ANSWER - Minimum PIP limits?
30 days - CORRECT ANSWER - Claims must be paid within ____ after proof of claim?
3 years - CORRECT ANSWER - Covers expenses incurred within _______ of accident?
90 days - CORRECT ANSWER - Commercial auto policy may be cancelled for ANY
reason within the first _______ of the policy?
60 Days - CORRECT ANSWER - ______- in advance for a nonrenewal commercial auto
insurance policy?
10 days - CORRECT ANSWER - _____- in advance to cancel a commercial auto
insurance policy?
10 Days - CORRECT ANSWER - _______ in advance for a personal auto cancellation
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Risk - CORRECT ANSWER - Chance or Uncertainty of a Loss
Peril - CORRECT ANSWER - Possible cause of a loss
2 Years - CORRECT ANSWER - The Commissioner of insurance is appointed by the
governor for a term of ______ ending on February 1 of each odd-numbered year?
5 Years - CORRECT ANSWER - The Commissioner of insurance MUST have ________
of experience in business or government.
$50,000 - CORRECT ANSWER - The Commissioner of insurance must provide a
__________ surety bond. (A surety bond guarantees performance)
$500,000 - CORRECT ANSWER - The Commissioner of insurance requires state fees in
excess of _____________ to be submitted by electronic transfer.
15 Days - CORRECT ANSWER - The Commissioner of insurance requires that persons
must respond to commissioner inquires within_______ ?
20 Days - CORRECT ANSWER - Response from alleged violator must be within ______
of receipt?
14 Days - CORRECT ANSWER - Department must send notice of violation within _____
of finding?
,$25,000 - CORRECT ANSWER - Maximum penalty for insurance code violations?
18 Years Old - CORRECT ANSWER - Minimum age for a license?
5 years - CORRECT ANSWER - The waiting period to reapply if license is denied or
revoked?
90 Days - CORRECT ANSWER - An Emergency License is valid for up to ___?
90 Days - CORRECT ANSWER - An Emergency license may be renewed an additional
____?
90 Days - CORRECT ANSWER - A temporary license is valid for up to ___?
2 years - CORRECT ANSWER - Business entity agent licenses are renewed every ______
after the license is issued?
1 Year - CORRECT ANSWER - If the license is expired for more than _______ all
requirements for a new license (including the exam) must be met?
90 Days - CORRECT ANSWER - If a license has been expires for _________ or less, it
may be renewed by paying the renewal fee plus a 50% penalty.
90 Days - CORRECT ANSWER - A license expired more than ______ but less than one
year cannot be renewed; a new license maybe issued with no exam upon payment of license fee
& penalty fee?
Monthly Basis - CORRECT ANSWER - Change in address, felony convictions, or
administrative actions must be reported to the commissioner on a __________?
,24 Hours - CORRECT ANSWER - Total continuing education requirements?
2 Hours - CORRECT ANSWER - Ethics & consumer protection continuing education
requirement?
3 hours - CORRECT ANSWER - Flood insurance requires _____ certification course?
4 years - CORRECT ANSWER - Continuing education records must be kept for _____?
25% - CORRECT ANSWER - At least ____ of annual premiums must be derived from
persons other than the applicant, applicants family, & applicants business associates.
60 Days - CORRECT ANSWER - Approval of Rate & forms must be filed _____ before
use?
30 Days - CORRECT ANSWER - Binders must be replaced by the insurance policy
within ____?
$15 million - CORRECT ANSWER - Surplus lines insurer's capital & surplus must be at
least ______?
30 Days - CORRECT ANSWER - Suspected fraudulent acts must be reported to the
commissioner or law enforcement within _____?
10 Days - CORRECT ANSWER - ______ in advance for Homeowners Insurance
cancellation?
6 months - CORRECT ANSWER - Texas FAIR (Fair Access to Insurance requirements)
provides residential property insurance when coverage is unavailable in other markets or when
there has been no insurance on the property in the past ______?
, 30 Days - CORRECT ANSWER - _________ in advance for a Nonrenewal?
$60,000 - CORRECT ANSWER - Bodily injury or death of 2 or more people _____?
$25,000 - CORRECT ANSWER - Property damage per accident?
30/60/25 - CORRECT ANSWER - Minimum liability in Texas ($30,000 per person for
bodily injury, $60,000 per accident for bodily injury, $25,000 for property damage of others)
$30,000 - CORRECT ANSWER - Bodily injury or death of any 1 person?
$2,500 - CORRECT ANSWER - Minimum PIP limits?
30 days - CORRECT ANSWER - Claims must be paid within ____ after proof of claim?
3 years - CORRECT ANSWER - Covers expenses incurred within _______ of accident?
90 days - CORRECT ANSWER - Commercial auto policy may be cancelled for ANY
reason within the first _______ of the policy?
60 Days - CORRECT ANSWER - ______- in advance for a nonrenewal commercial auto
insurance policy?
10 days - CORRECT ANSWER - _____- in advance to cancel a commercial auto
insurance policy?
10 Days - CORRECT ANSWER - _______ in advance for a personal auto cancellation
