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TEXAS PROPERTY AND CASUALTY INSURANCE EXAM NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which of the following describes an insurer's responsibility for
payment under a policy as stated in the common policy
provisions? - ANSWER-Limits of liability.
All of the following are TRUE about the completion of prelicensing
training EXCEPT: - ANSWER-The requirement can be fulfilled by
completing training through lecture course, home study or online.
What is the minimum penalty that may be imposed on an insurer
found guilty of defamation? - ANSWER-$200.
An insurance producer fails to meet the Director's continuing
education requirement. Which of the following will most likely
occur? - ANSWER-The producer's license will be terminated.
All of the following are TRUE about the Insurance Frauds
Prevention Act EXCEPT: - ANSWER-Any person, who furnishes
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information on its behalf, is liable for damages in a civil action or
subject to criminal prosecution for any oral or written statement
made.
Elements of a Legal Contract - ANSWER-1. Agreement
2. Consideration
3. Competent parties
4. Legal purpose
Agreement - ANSWER-offer and acceptance
Offer - ANSWER-When Customer submits application
Acceptance - ANSWER-Company issues policy
Consideration - ANSWER-something of value exchanged for
something else of value
(both parties must bring value)
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Consideration of insured/customer - ANSWER-Application plus
premium
Consideration of insurer/company - ANSWER-Promise to pay
competent parties (contract) - ANSWER-Old enough
Sound mind
Not under the influence
(examples of test question - Felon is OK
16 year-old college student not OK)
Legal purpose is a term used in contract law meaning - ANSWER-
there must be legal reasons for entering into the contract and it
cannot break the law.
Example, you cannot have a contract for murder .
representation - ANSWER-a statement believed to be true to the
best of one's knowledge
(example: do you have cancer? No, you do not THINK you do.)
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warranty - ANSWER-absolutely true statement
(example - what street do you live on?)
binder - ANSWER-A temporary written or oral agreement to
provide insurance coverage until a formal written policy is issued.
(there are no binders for flood)
Policy Structure (DICE) - ANSWER-Declarations, Insuring
Agreement, Conditions, Exclusions
(Also: definition/additional or supplementary)
The declaration page includes - ANSWER-Named insured
Name of insurer
Address
Amount (limits of ins)
Period
Premium
(NNAAPP)
TEXAS PROPERTY AND CASUALTY INSURANCE EXAM NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which of the following describes an insurer's responsibility for
payment under a policy as stated in the common policy
provisions? - ANSWER-Limits of liability.
All of the following are TRUE about the completion of prelicensing
training EXCEPT: - ANSWER-The requirement can be fulfilled by
completing training through lecture course, home study or online.
What is the minimum penalty that may be imposed on an insurer
found guilty of defamation? - ANSWER-$200.
An insurance producer fails to meet the Director's continuing
education requirement. Which of the following will most likely
occur? - ANSWER-The producer's license will be terminated.
All of the following are TRUE about the Insurance Frauds
Prevention Act EXCEPT: - ANSWER-Any person, who furnishes
,2|Page
information on its behalf, is liable for damages in a civil action or
subject to criminal prosecution for any oral or written statement
made.
Elements of a Legal Contract - ANSWER-1. Agreement
2. Consideration
3. Competent parties
4. Legal purpose
Agreement - ANSWER-offer and acceptance
Offer - ANSWER-When Customer submits application
Acceptance - ANSWER-Company issues policy
Consideration - ANSWER-something of value exchanged for
something else of value
(both parties must bring value)
,3|Page
Consideration of insured/customer - ANSWER-Application plus
premium
Consideration of insurer/company - ANSWER-Promise to pay
competent parties (contract) - ANSWER-Old enough
Sound mind
Not under the influence
(examples of test question - Felon is OK
16 year-old college student not OK)
Legal purpose is a term used in contract law meaning - ANSWER-
there must be legal reasons for entering into the contract and it
cannot break the law.
Example, you cannot have a contract for murder .
representation - ANSWER-a statement believed to be true to the
best of one's knowledge
(example: do you have cancer? No, you do not THINK you do.)
, 4|Page
warranty - ANSWER-absolutely true statement
(example - what street do you live on?)
binder - ANSWER-A temporary written or oral agreement to
provide insurance coverage until a formal written policy is issued.
(there are no binders for flood)
Policy Structure (DICE) - ANSWER-Declarations, Insuring
Agreement, Conditions, Exclusions
(Also: definition/additional or supplementary)
The declaration page includes - ANSWER-Named insured
Name of insurer
Address
Amount (limits of ins)
Period
Premium
(NNAAPP)
