TEXAS PROPERTY AND CASUALTY INSURANCE
EXAM SCRIPT 2026 QUESTIONS WITH
VERIFIED CORRECT ANSWERS
◉ The limits of liability are found in which of the following sections of
a casualty policy? Answer: Declarations
◉ The _____ page in an insurance contract contains information about
the risk, the effective date of coverage, deductible, premium amounts,
coinsurance percentage, and location of the insured property. Answer:
Declarations
◉ The insured is looking for the amount of coverage in a property and
casualty policy. This information would be found in the ______.
Answer: declarations
◉ The coverages offered by an insurance policy are described in the
____. Answer: insuring agreement
◉ The purpose of the conditions section of an insurance policy is to list
the ____ of the insured and the insurance company. Answer: obligations
,◉ The list of perils covered under a policy is found in which part of the
policy? Answer: Insuring agreement
◉ The Declarations page consists of 5 P's. Person or property, policy
number, policy term, policy limit and ____. Answer: premium
◉ The Insuring agreement describes coverage provided and which ____
are covered. Answer: perils
◉ Lost rent is covered by _____. Limited by 20% of coverage A.
Answer: Coverage D
◉ Under which of the dwelling forms may the insured be reimbursed for
the replacement cost of a dwelling when it is destroyed? Answer: DP-2
and DP-3
◉ The insured has a DP-3 covering a home that has a replacement value
of $100,000. The insured carries $60,000 of insurance. Following a loss,
it is determined that it would cost $12,000 to replace the damaged
portion of the home. How much could the insured collect, assuming the
ACV of the loss is $6,000? Answer: $9000
◉ Damage to covered property caused by glass breakage is covered in
___. Answer: DP2 and DP3
,◉ Which dwelling forms pay losses to dwellings and other structures on
an actual cash value basis? Answer: DP1
◉ Which dwelling forms pay losses to personal property on an actual
cash value basis? Answer: DP1, DP2 and DP3
◉ Would an earthquake that causes a fire that destroys an insured's home
be covered by a DP1? Answer: yes
◉ A dwelling policy with no endorsements attached contains personal
property coverage, dwelling coverage and _____. Answer: medical
payments coverage
◉ An unendorsed dwelling policy contains the dwelling, other
structures, personal property, and _____. Answer: fair rental value
◉ Other coverage included in all dwelling forms are fire department
service charges, debris removal, reasonable repairs, and _____ limited to
10% of coverage C. Answer: glass safety material
◉ Does the DP1 provides coverage for appurtenant structures? Answer:
yes
◉ _____ coverage must be added to a dwelling policy by endorsement.
Answer: Theft and liability
, ◉ An insured has a $60,000 special form (DP-3). When a covered loss
in the amount of $10,000 damages the attached garage, how much of
that amount is paid under the Coverage B-Other Structures? Answer: $0
◉ Of the dwelling forms, which one of the following provides the
broadest coverage? Answer: special
◉ The special form (DP-3) covers the dwelling and other structures for
____. Answer: open perils
◉ In the dwelling forms, damage from vandalism is not covered if the
building has been vacant for more than ____. Answer: 60 days
◉ A property owner wants to insure both the rental property and any of
the tenant's belongings if they are stolen. Which policy would you
recommend and why? Answer: DP-3 special form and a separate tenant's
policy to cover personal property.
◉ The dwelling policy will provide how much additional coverage for a
fire department service charge? Answer: $500
◉ An insured suffers a covered loss to some rental property that forces
the tenant to move to another location. Under which section of the
EXAM SCRIPT 2026 QUESTIONS WITH
VERIFIED CORRECT ANSWERS
◉ The limits of liability are found in which of the following sections of
a casualty policy? Answer: Declarations
◉ The _____ page in an insurance contract contains information about
the risk, the effective date of coverage, deductible, premium amounts,
coinsurance percentage, and location of the insured property. Answer:
Declarations
◉ The insured is looking for the amount of coverage in a property and
casualty policy. This information would be found in the ______.
Answer: declarations
◉ The coverages offered by an insurance policy are described in the
____. Answer: insuring agreement
◉ The purpose of the conditions section of an insurance policy is to list
the ____ of the insured and the insurance company. Answer: obligations
,◉ The list of perils covered under a policy is found in which part of the
policy? Answer: Insuring agreement
◉ The Declarations page consists of 5 P's. Person or property, policy
number, policy term, policy limit and ____. Answer: premium
◉ The Insuring agreement describes coverage provided and which ____
are covered. Answer: perils
◉ Lost rent is covered by _____. Limited by 20% of coverage A.
Answer: Coverage D
◉ Under which of the dwelling forms may the insured be reimbursed for
the replacement cost of a dwelling when it is destroyed? Answer: DP-2
and DP-3
◉ The insured has a DP-3 covering a home that has a replacement value
of $100,000. The insured carries $60,000 of insurance. Following a loss,
it is determined that it would cost $12,000 to replace the damaged
portion of the home. How much could the insured collect, assuming the
ACV of the loss is $6,000? Answer: $9000
◉ Damage to covered property caused by glass breakage is covered in
___. Answer: DP2 and DP3
,◉ Which dwelling forms pay losses to dwellings and other structures on
an actual cash value basis? Answer: DP1
◉ Which dwelling forms pay losses to personal property on an actual
cash value basis? Answer: DP1, DP2 and DP3
◉ Would an earthquake that causes a fire that destroys an insured's home
be covered by a DP1? Answer: yes
◉ A dwelling policy with no endorsements attached contains personal
property coverage, dwelling coverage and _____. Answer: medical
payments coverage
◉ An unendorsed dwelling policy contains the dwelling, other
structures, personal property, and _____. Answer: fair rental value
◉ Other coverage included in all dwelling forms are fire department
service charges, debris removal, reasonable repairs, and _____ limited to
10% of coverage C. Answer: glass safety material
◉ Does the DP1 provides coverage for appurtenant structures? Answer:
yes
◉ _____ coverage must be added to a dwelling policy by endorsement.
Answer: Theft and liability
, ◉ An insured has a $60,000 special form (DP-3). When a covered loss
in the amount of $10,000 damages the attached garage, how much of
that amount is paid under the Coverage B-Other Structures? Answer: $0
◉ Of the dwelling forms, which one of the following provides the
broadest coverage? Answer: special
◉ The special form (DP-3) covers the dwelling and other structures for
____. Answer: open perils
◉ In the dwelling forms, damage from vandalism is not covered if the
building has been vacant for more than ____. Answer: 60 days
◉ A property owner wants to insure both the rental property and any of
the tenant's belongings if they are stolen. Which policy would you
recommend and why? Answer: DP-3 special form and a separate tenant's
policy to cover personal property.
◉ The dwelling policy will provide how much additional coverage for a
fire department service charge? Answer: $500
◉ An insured suffers a covered loss to some rental property that forces
the tenant to move to another location. Under which section of the
