2025 Newest Property and Casualty Exam Prep Test Bank
with 300 Questions and Correct Answers/ Property and
Casualty License Test 2025-2026/ P & C Exam
When does the Texas Property and Casualty Insurance Guarantee Association pay
covered claims?
A) When an Admitted Insurer fails to pay the claim within 6 months
B) When an Admitted Insurer becomes insolvent
C) When an Admitted Insurer fails to pay the claim within 3 months
D) Never, they sell policies, they do not pay claims - ANSWER-B) When an
Admitted Insurer becomes insolvent
If a Producer/Agent makes a false statement which is derogatory towards the
financial condition of another in the business with the intent to injure the person or
company engaged in the business of insurance. This is known as?
A) Disparagement
B) Defamation
C) Intimidation
D) Twisting - ANSWER-B) Defamation
The Department of Insurance may issue a temporary agent's license, valid for
______ days.
A) 120
B) 180
C) 30
D) 60 - ANSWER-B) 180
pg. 1
,Which of the following is not included in the Personal Effects and Property of
Others Extension under the Building and Personal Property Coverage Form?
A) Personal effects owned by the insured
B) Loss by theft of personal effects
C) Personal effects owned by any partner or member of the insured
D) Personal property of others in the insured's care - ANSWER-B) Loss by theft of
personal effects
Under the Building and Personal Property Coverage Form of the Commercial
Package policy, a limit of ___________ is provided for business personal property
temporarily away from the premises.
A) $2,500
B) $15,000
C) $10,000
D) $5,000 - ANSWER-C) $10,000
Which of the following is incorrect in a commercial property policy?
A) Changes in the terms of the policy can be made only by endorsement issued by
the insurer
B) The insurer has the obligation to inspect the property
C) The first named insured is the payee of any return premiums
D) The insurer may examine or audit the insured's books any time during the
policy period, or within 3 years after the policy ends - ANSWER-B) The insurer
has the obligation to inspect the property
Which Business Auto Symbol is the broadest of all Symbols in Commercial Auto
policy?
A) Symbol 3
pg. 2
,B) Symbol 1
C) Symbol 2
D) Symbol 4 - ANSWER-B) Symbol 1
The gas stove in a kitchen starts a grease fire. The grease fire catches the curtains
on fire. What would this be called?
A) Intentional damage
B) Inherent vice
C) Friendly fire
D) Hostile fire - ANSWER-D) Hostile fire
Market Value is which of these?
A) The price a realtor sells the average home for
B) The price a car dealer gets on the average sale
C) The price a willing buyer pays a willing seller
D) The price a willing seller sells on average - ANSWER-C) The price a willing
buyer pays a willing seller
A proof of loss in a personal auto policy does which of these?
A) Helps insurer to settle a covered loss
B) Guarantees the value of the property
C) Guarantees payment of a claim
D) Provides the insured proof that damage has occurred - ANSWER-A) Helps
insurer to settle a covered loss
When all parties perform certain duties as obligated, coverage will remain in effect
and the insured would receive payment of a claim. This describes which of these?
pg. 3
, A) Aleatory contract
B) Contract of adhesion
C) Conditional contract
D) Unilateral contract - ANSWER-C) Conditional contract
An insurance contract is considered which type of contract because it puts the
insured back is the same financial condition as before the loss?
A) A unilateral contract
B) A contract of adhesion
C) A contract of indemnity
D) An aleatory contract - ANSWER-C) A contract of adhesion
Which Property Condition provides that the insurer may broaden coverage during
the policy period without an increase in premium?
A) Liberalization
B) Other Insurance
C) Assignment
D) Appraisal - ANSWER-A) Liberalization
An insurer wishing to dissolve their relationship with a producer would?
A) Non-renew producer's insurance license
B) Terminate producer's insurance license
C) Terminate producer's appointment
D) File a law suit - ANSWER-C) Terminate producer's appointment
In a CGL policy the initial premium paid at the beginning is?
pg. 4
with 300 Questions and Correct Answers/ Property and
Casualty License Test 2025-2026/ P & C Exam
When does the Texas Property and Casualty Insurance Guarantee Association pay
covered claims?
A) When an Admitted Insurer fails to pay the claim within 6 months
B) When an Admitted Insurer becomes insolvent
C) When an Admitted Insurer fails to pay the claim within 3 months
D) Never, they sell policies, they do not pay claims - ANSWER-B) When an
Admitted Insurer becomes insolvent
If a Producer/Agent makes a false statement which is derogatory towards the
financial condition of another in the business with the intent to injure the person or
company engaged in the business of insurance. This is known as?
A) Disparagement
B) Defamation
C) Intimidation
D) Twisting - ANSWER-B) Defamation
The Department of Insurance may issue a temporary agent's license, valid for
______ days.
A) 120
B) 180
C) 30
D) 60 - ANSWER-B) 180
pg. 1
,Which of the following is not included in the Personal Effects and Property of
Others Extension under the Building and Personal Property Coverage Form?
A) Personal effects owned by the insured
B) Loss by theft of personal effects
C) Personal effects owned by any partner or member of the insured
D) Personal property of others in the insured's care - ANSWER-B) Loss by theft of
personal effects
Under the Building and Personal Property Coverage Form of the Commercial
Package policy, a limit of ___________ is provided for business personal property
temporarily away from the premises.
A) $2,500
B) $15,000
C) $10,000
D) $5,000 - ANSWER-C) $10,000
Which of the following is incorrect in a commercial property policy?
A) Changes in the terms of the policy can be made only by endorsement issued by
the insurer
B) The insurer has the obligation to inspect the property
C) The first named insured is the payee of any return premiums
D) The insurer may examine or audit the insured's books any time during the
policy period, or within 3 years after the policy ends - ANSWER-B) The insurer
has the obligation to inspect the property
Which Business Auto Symbol is the broadest of all Symbols in Commercial Auto
policy?
A) Symbol 3
pg. 2
,B) Symbol 1
C) Symbol 2
D) Symbol 4 - ANSWER-B) Symbol 1
The gas stove in a kitchen starts a grease fire. The grease fire catches the curtains
on fire. What would this be called?
A) Intentional damage
B) Inherent vice
C) Friendly fire
D) Hostile fire - ANSWER-D) Hostile fire
Market Value is which of these?
A) The price a realtor sells the average home for
B) The price a car dealer gets on the average sale
C) The price a willing buyer pays a willing seller
D) The price a willing seller sells on average - ANSWER-C) The price a willing
buyer pays a willing seller
A proof of loss in a personal auto policy does which of these?
A) Helps insurer to settle a covered loss
B) Guarantees the value of the property
C) Guarantees payment of a claim
D) Provides the insured proof that damage has occurred - ANSWER-A) Helps
insurer to settle a covered loss
When all parties perform certain duties as obligated, coverage will remain in effect
and the insured would receive payment of a claim. This describes which of these?
pg. 3
, A) Aleatory contract
B) Contract of adhesion
C) Conditional contract
D) Unilateral contract - ANSWER-C) Conditional contract
An insurance contract is considered which type of contract because it puts the
insured back is the same financial condition as before the loss?
A) A unilateral contract
B) A contract of adhesion
C) A contract of indemnity
D) An aleatory contract - ANSWER-C) A contract of adhesion
Which Property Condition provides that the insurer may broaden coverage during
the policy period without an increase in premium?
A) Liberalization
B) Other Insurance
C) Assignment
D) Appraisal - ANSWER-A) Liberalization
An insurer wishing to dissolve their relationship with a producer would?
A) Non-renew producer's insurance license
B) Terminate producer's insurance license
C) Terminate producer's appointment
D) File a law suit - ANSWER-C) Terminate producer's appointment
In a CGL policy the initial premium paid at the beginning is?
pg. 4
