Page |1
TEXAS PROPERTY AND CASUALTY INSURANCE TEST
EXAM 2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
The FAIR Plan was brought into being to cover dwellings for
minimum amounts that companies would not accept, and to
spread the business ____ among all companies. -ANSWERS-
equitably
A business owners policy (BOP) can stand by itself as a ____? -
ANSWERS-commercial package policy
If you own and drive a car, you have ____. -ANSWERS-exposure
The owner of an old building buys insurance to protect himself
from a possible lawsuit. This is an example of risk ____. -
ANSWERS-transfer
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The only newspaper in Clarksville was severely damaged by a
tornado. The paper must be printed for several weeks at another
printing facility in a distant town. Under which insurance coverage
would that loss be covered? -ANSWERS-Extra expense
Under the homeowners policy, in order to receive replacement
cost on a partial loss, the amount of insurance carried must be at
least ____ of replacement cost. -ANSWERS-80%
The deductible in an umbrella policy is referred to as _____. -
ANSWERS-self-insured retention
An insurance policy covers fire, will not cover nuclear
contamination, and loss must be reported as soon as possible. In
this order, where are these facts found in the policy? -ANSWERS-
Insuring agreement, exclusions, and proof of loss
The ____ section includes the insurance company's promise to
pay the claim. -ANSWERS-insuring agreement
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Ralph owns an antique pen and pencil set that is insured under a
personal articles floater. The value of the set is $30,000. After the
loss of the pen, the pencil is valued at $20,000. The insurance
company will pay the maximum amount of ____. -ANSWERS-
$10,000
The 3 parties to a surety bond are the principal, the surety and the
____. -ANSWERS-obligee
The ordinance and law coverage provides an additional amount of
insurance for the increased costs of repair due to ____. -
ANSWERS-zoning laws
An individual who owns and lives in a condominium can obtain
broad coverage for personal property in the condo under the
____. -ANSWERS-HO6
An HO-3 would cover loss from _____. -ANSWERS-smoke
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The insured has an auto policy with liability limits of
$30,000/$60,000/$10,000. He negligently runs off the road and
causes $70,000 damage to an apartment building. How much will
the policy pay? -ANSWERS-$10,000
A piece of jewelry valued at $10,000 is stolen from the insured
while at the mall. How much will an HO-3 policy pay for this loss?
-ANSWERS-$1500
An insured item is destroyed by a covered cause of loss. The
insurer and the insured have determined the value of the loss in
advance, and the full amount is payable under the ____ contract.
-ANSWERS-valued
The listing of the perils covered under a policy is found in the
____. -ANSWERS-insuring agreement
The following are excluded from the liability portion of commercial
auto coverage: injuries sustained by an employee, mobile
equipment, organized racing and ___. -ANSWERS-pollution
TEXAS PROPERTY AND CASUALTY INSURANCE TEST
EXAM 2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
The FAIR Plan was brought into being to cover dwellings for
minimum amounts that companies would not accept, and to
spread the business ____ among all companies. -ANSWERS-
equitably
A business owners policy (BOP) can stand by itself as a ____? -
ANSWERS-commercial package policy
If you own and drive a car, you have ____. -ANSWERS-exposure
The owner of an old building buys insurance to protect himself
from a possible lawsuit. This is an example of risk ____. -
ANSWERS-transfer
, Page |2
The only newspaper in Clarksville was severely damaged by a
tornado. The paper must be printed for several weeks at another
printing facility in a distant town. Under which insurance coverage
would that loss be covered? -ANSWERS-Extra expense
Under the homeowners policy, in order to receive replacement
cost on a partial loss, the amount of insurance carried must be at
least ____ of replacement cost. -ANSWERS-80%
The deductible in an umbrella policy is referred to as _____. -
ANSWERS-self-insured retention
An insurance policy covers fire, will not cover nuclear
contamination, and loss must be reported as soon as possible. In
this order, where are these facts found in the policy? -ANSWERS-
Insuring agreement, exclusions, and proof of loss
The ____ section includes the insurance company's promise to
pay the claim. -ANSWERS-insuring agreement
, Page |3
Ralph owns an antique pen and pencil set that is insured under a
personal articles floater. The value of the set is $30,000. After the
loss of the pen, the pencil is valued at $20,000. The insurance
company will pay the maximum amount of ____. -ANSWERS-
$10,000
The 3 parties to a surety bond are the principal, the surety and the
____. -ANSWERS-obligee
The ordinance and law coverage provides an additional amount of
insurance for the increased costs of repair due to ____. -
ANSWERS-zoning laws
An individual who owns and lives in a condominium can obtain
broad coverage for personal property in the condo under the
____. -ANSWERS-HO6
An HO-3 would cover loss from _____. -ANSWERS-smoke
, Page |4
The insured has an auto policy with liability limits of
$30,000/$60,000/$10,000. He negligently runs off the road and
causes $70,000 damage to an apartment building. How much will
the policy pay? -ANSWERS-$10,000
A piece of jewelry valued at $10,000 is stolen from the insured
while at the mall. How much will an HO-3 policy pay for this loss?
-ANSWERS-$1500
An insured item is destroyed by a covered cause of loss. The
insurer and the insured have determined the value of the loss in
advance, and the full amount is payable under the ____ contract.
-ANSWERS-valued
The listing of the perils covered under a policy is found in the
____. -ANSWERS-insuring agreement
The following are excluded from the liability portion of commercial
auto coverage: injuries sustained by an employee, mobile
equipment, organized racing and ___. -ANSWERS-pollution
