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TEXAS PROPERTY AND CASUALTY
LICENSING EXAM 2025 UPDATED ACTUAL
EXAM WITH CORRECT SOLUTIONS.
The policy provision found in property insurance policies that
prevents the insured from collecting twice for the same loss is
called
A) Subrogation
B) Consent to settle loss
C) Right of salvage
D) Appraisal - correct answer- A) Subrogation
When insureds accept loss payment from the insurance
company, they must transfer their rights to recovery to the
insurer. This prevents the insured from collecting twice for the
same loss, and allows the insurer to indemnify the insurance
company.
For a contract to be enforceable by law, the purpose of the
contract must be
A) For financial gain
B) For the benefit of the general public
C) Of pure intent
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D) Legal and not against public policy - correct answer- D)
Legal and not against public policy
The purpose of a contract must be legal and not against public
policy for the contract itself to be enforceable by law (or legal)
Greg owns several buildings, each at a different location and
insured on a separate policy. What type of coverage does Greg
have?
A) Special
B) Specific
C) Schedule
D) Blanket - correct answer- B) Specific
Specific insurance provides a specific amount of coverage for
each property. A blanket insurance policy provides coverage for
more than one property with a single limit of coverage.
Which coverage form would provide coverage for all incoming
and outgoing shipments?
A) Mail coverage
B) Annual transit
C) Trip transit - correct answer- B) Annual transit
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Which of the following forms provides the broadest coverage
under an employee theft coverage form?
A) Name schedule
B) Individual
C) Blanket position
D) Position schedule - correct answer- C) Blanket position
Blanket position bond covers all employees in all positions on a
per employee basis.
Which professional liability form provides form coverage for
liability arising out of malpractice, error, or mistakes made in
rendering professional services?
A) Medical malpractice
B) Physicians, surgeons, and dentists malpractice
C) Lawyers professional liability
D) Directors liability - correct answer- B) Physicians, surgeons,
and dentists malpractice
The physicians, surgeons and dentists malpractice form
provides coverage for liability arising out of malpractice, error,
TEXAS PROPERTY AND CASUALTY
LICENSING EXAM 2025 UPDATED ACTUAL
EXAM WITH CORRECT SOLUTIONS.
The policy provision found in property insurance policies that
prevents the insured from collecting twice for the same loss is
called
A) Subrogation
B) Consent to settle loss
C) Right of salvage
D) Appraisal - correct answer- A) Subrogation
When insureds accept loss payment from the insurance
company, they must transfer their rights to recovery to the
insurer. This prevents the insured from collecting twice for the
same loss, and allows the insurer to indemnify the insurance
company.
For a contract to be enforceable by law, the purpose of the
contract must be
A) For financial gain
B) For the benefit of the general public
C) Of pure intent
,2 | Page
D) Legal and not against public policy - correct answer- D)
Legal and not against public policy
The purpose of a contract must be legal and not against public
policy for the contract itself to be enforceable by law (or legal)
Greg owns several buildings, each at a different location and
insured on a separate policy. What type of coverage does Greg
have?
A) Special
B) Specific
C) Schedule
D) Blanket - correct answer- B) Specific
Specific insurance provides a specific amount of coverage for
each property. A blanket insurance policy provides coverage for
more than one property with a single limit of coverage.
Which coverage form would provide coverage for all incoming
and outgoing shipments?
A) Mail coverage
B) Annual transit
C) Trip transit - correct answer- B) Annual transit
, 3 | Page
Which of the following forms provides the broadest coverage
under an employee theft coverage form?
A) Name schedule
B) Individual
C) Blanket position
D) Position schedule - correct answer- C) Blanket position
Blanket position bond covers all employees in all positions on a
per employee basis.
Which professional liability form provides form coverage for
liability arising out of malpractice, error, or mistakes made in
rendering professional services?
A) Medical malpractice
B) Physicians, surgeons, and dentists malpractice
C) Lawyers professional liability
D) Directors liability - correct answer- B) Physicians, surgeons,
and dentists malpractice
The physicians, surgeons and dentists malpractice form
provides coverage for liability arising out of malpractice, error,
