age 1 of 64
MS Property & Casualty FINAL EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Which of the following protects policyholders and claimants of
impaired or insolvent insurers that cannot pay their claims or
benefits? .....Answer.....Texas Property and Casualty Insurance
Guaranty Association
Janet has been continuously licensed as an agent in Texas for
the past 25 years. Her friend Steven is a nonresident licensee in
Texas and every year completes his state's continuing education
requirements. When they ask you for advice on meeting the
Texas continuing education requirements, you inform them that:
,age 2 of 64
.....Answer.....Neither Steve nor Janet needs to comply with
Texas's continuing education requirements
Which of the following statements BEST describes the transfer of
risk via an insurance contract? .....Answer.....Not all risks are
transferable via insurance contracts
Which of the following licensees works for a person who is
licensed as a property and casualty agent and explains
coverage, describes insurance products and quotes premium
rates? .....Answer.....Insurance service representative
Steven was having lunch with a group of agents when he made
some false statements about a competitor's financial condition in
order to hurt their reputation. In this case, Steven has committed
which of the following acts? .....Answer.....Defamation
,age 3 of 64
Angela cannot obtain a homeowners insurance policy from a
licensed insurance company in Texas. From which entity will she
likely be able to obtain coverage? .....Answer.....Fair Housing
Plan
Kent stated on his application for property insurance that the
roof of the building being insured had been recently replaced.
In fact, the replacement occurred 12 years ago. Kent made a
false statement of a material fact, which is also known as a
.....Answer.....Misrepresentation
The Texas Department of Insurance receives a written complaint
about an insurer that prompts an investigation. The Department
uncovers evidence of an elaborate money-laundering operation
and determines that an undercover investigation is necessary to
obtain enough evidence to pursue a conviction of the company's
officers. Which of the following statements is true?
, age 4 of 64
.....Answer.....TDI can withhold any notices to the complaining
party until the investigation is completed
Alex asks your advice seeking objective information about the
financial reliability of an insurance company from which he is
considering the purchase of insurance. You might suggest that he
.....Answer.....Check the company's financial rating from an
established rating organization
Many large organizations self-insure up to a specific limit but
buy insurance to cover losses beyond that limit. Setting up a self-
insurance program is an example of which method of handling
risk? .....Answer.....Risk retention
Esther has just bought an expensive painting as an addition to
her art collection.Considering the high price she paid for it, she
wants to be sure there will be no dispute with the insurer in the
MS Property & Casualty FINAL EXAM STUDY GUIDE
2025/2026 ACCURATE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <BRAND NEW VERSION>
Which of the following protects policyholders and claimants of
impaired or insolvent insurers that cannot pay their claims or
benefits? .....Answer.....Texas Property and Casualty Insurance
Guaranty Association
Janet has been continuously licensed as an agent in Texas for
the past 25 years. Her friend Steven is a nonresident licensee in
Texas and every year completes his state's continuing education
requirements. When they ask you for advice on meeting the
Texas continuing education requirements, you inform them that:
,age 2 of 64
.....Answer.....Neither Steve nor Janet needs to comply with
Texas's continuing education requirements
Which of the following statements BEST describes the transfer of
risk via an insurance contract? .....Answer.....Not all risks are
transferable via insurance contracts
Which of the following licensees works for a person who is
licensed as a property and casualty agent and explains
coverage, describes insurance products and quotes premium
rates? .....Answer.....Insurance service representative
Steven was having lunch with a group of agents when he made
some false statements about a competitor's financial condition in
order to hurt their reputation. In this case, Steven has committed
which of the following acts? .....Answer.....Defamation
,age 3 of 64
Angela cannot obtain a homeowners insurance policy from a
licensed insurance company in Texas. From which entity will she
likely be able to obtain coverage? .....Answer.....Fair Housing
Plan
Kent stated on his application for property insurance that the
roof of the building being insured had been recently replaced.
In fact, the replacement occurred 12 years ago. Kent made a
false statement of a material fact, which is also known as a
.....Answer.....Misrepresentation
The Texas Department of Insurance receives a written complaint
about an insurer that prompts an investigation. The Department
uncovers evidence of an elaborate money-laundering operation
and determines that an undercover investigation is necessary to
obtain enough evidence to pursue a conviction of the company's
officers. Which of the following statements is true?
, age 4 of 64
.....Answer.....TDI can withhold any notices to the complaining
party until the investigation is completed
Alex asks your advice seeking objective information about the
financial reliability of an insurance company from which he is
considering the purchase of insurance. You might suggest that he
.....Answer.....Check the company's financial rating from an
established rating organization
Many large organizations self-insure up to a specific limit but
buy insurance to cover losses beyond that limit. Setting up a self-
insurance program is an example of which method of handling
risk? .....Answer.....Risk retention
Esther has just bought an expensive painting as an addition to
her art collection.Considering the high price she paid for it, she
wants to be sure there will be no dispute with the insurer in the
