TEXAS PROPERTY AND CASUALTY INSURANCE
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND SOLUTIONS
◉ What is Coverage A? Answer: The dwelling, garages, decks and
patios that are physically attached (house you live in, roof walls, include
porch in, decks, garages, patios that extend but are still attached
physically)
Intended to give you enough money to rebuild the slab up if it burned in
fire or blown away
Determined the same way for any kind of house. Labor and Materials.
(Purchase price or Real Estate Value doesn't matter). Zip code, shape,
type of house like brick or stucco, the inside upgrades like wood carpet
paint and square footage matter. That's what to input in the calculator to
figure out PSF price.
◉ What is Coverage B? Answer: Other Structures (10% of A); insures
buildings on the premises that are SEPARATED from the dwelling by a
clear space or connected only by a fence/ utility line.
,Example: Driveway, Detached Garages, inground swimming pool,
gazebo, summer kitchens detached from house, all fences around the
property
◉ What is Coverage C? Answer: i. All of your stuff, "Personal Property"
ii. Can be on premises and off premises. Outside furniture also counts.
iii. Should be movable
iv. Usually, 50% or 75% of Coverage A. Company rule but can be
raised.
◉ T/F: d. When applied for Coverage, You get all 3, not one or the other.
You get A+B+C Answer: True
◉ What does ADPL stand for? Answer: Accidental Direct Physical Loss:
i. Accidental-Something "Happened"
ii. A Peril impacted on a known date at a known time
iii. Direct-the damage to the property, not consequential losses such as
loss of use
iv. Physical-Actual physical damage and changes
v. Loss-Property is not in the same useful loss as it was
◉ What is a peril? Answer: Anything that may cause a loss
,The forces out there that can cause damage to property
1. Fire
2. Tornado
3. Theft
4. Vandalism
5. Flooding
6. Water leaks
◉ Explain Exclusion 1: Ordinance and Law Answer: 1. Insurance will
not come to home and bring old plumbing or electrical system up to
code
2. Insurance will pay for required code upgrades in the course of covered
repairs in connection with a claim
◉ Explain Exclusion 2: Earth Movement Answer: 1. Earthquake (land
shock waves or tremors) before during or after a volcanic eruption
2. Landslide mudslide or mudflow
3. Subsidence or sinkhole
4. Any other earth movement including earth sinking rising or shifting
◉ Explain Exclusion 3: Flood Answer: 1. Water (Flooding), surface
water, including tidal wave, tsunami, tidal water, overflow of any body
or water, or spray from any of these not driven by wind, including storm
surge, water which backs up through sewers or drains
, a. However if fire breaks out because of any of the above, insurance will
pay. (Covered resulting loss)
i. Example: Gas line is broken
◉ Explain Exclusion 4: Power Failures (Black-Outs) Answer: 1. Failure
of power or other utility service if the failure takes place off the
residence premises
a. Lack of power must lead to a "covered loss" on the premises such as
Freezing.
◉ Explain Exclusion 5: Neglect Answer: 1. Neglect of an insured to use
all reasonable means to save and preserve property at and after the time
of a loss
a. Must maintain property at all time of debris on roof or trimmed trees
or water leaks
b. Whenever you have had a claim, must take steps to mitigate the
damage. If failed, then insurance doesn't have to pay for anything you
could have/should have prevented.
◉ Explain Exclusion 8: Intentional Damage by you Answer: 1. Any loss
arising out of any act an "insured" commits or conspires with intent to
cause a loss.
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND SOLUTIONS
◉ What is Coverage A? Answer: The dwelling, garages, decks and
patios that are physically attached (house you live in, roof walls, include
porch in, decks, garages, patios that extend but are still attached
physically)
Intended to give you enough money to rebuild the slab up if it burned in
fire or blown away
Determined the same way for any kind of house. Labor and Materials.
(Purchase price or Real Estate Value doesn't matter). Zip code, shape,
type of house like brick or stucco, the inside upgrades like wood carpet
paint and square footage matter. That's what to input in the calculator to
figure out PSF price.
◉ What is Coverage B? Answer: Other Structures (10% of A); insures
buildings on the premises that are SEPARATED from the dwelling by a
clear space or connected only by a fence/ utility line.
,Example: Driveway, Detached Garages, inground swimming pool,
gazebo, summer kitchens detached from house, all fences around the
property
◉ What is Coverage C? Answer: i. All of your stuff, "Personal Property"
ii. Can be on premises and off premises. Outside furniture also counts.
iii. Should be movable
iv. Usually, 50% or 75% of Coverage A. Company rule but can be
raised.
◉ T/F: d. When applied for Coverage, You get all 3, not one or the other.
You get A+B+C Answer: True
◉ What does ADPL stand for? Answer: Accidental Direct Physical Loss:
i. Accidental-Something "Happened"
ii. A Peril impacted on a known date at a known time
iii. Direct-the damage to the property, not consequential losses such as
loss of use
iv. Physical-Actual physical damage and changes
v. Loss-Property is not in the same useful loss as it was
◉ What is a peril? Answer: Anything that may cause a loss
,The forces out there that can cause damage to property
1. Fire
2. Tornado
3. Theft
4. Vandalism
5. Flooding
6. Water leaks
◉ Explain Exclusion 1: Ordinance and Law Answer: 1. Insurance will
not come to home and bring old plumbing or electrical system up to
code
2. Insurance will pay for required code upgrades in the course of covered
repairs in connection with a claim
◉ Explain Exclusion 2: Earth Movement Answer: 1. Earthquake (land
shock waves or tremors) before during or after a volcanic eruption
2. Landslide mudslide or mudflow
3. Subsidence or sinkhole
4. Any other earth movement including earth sinking rising or shifting
◉ Explain Exclusion 3: Flood Answer: 1. Water (Flooding), surface
water, including tidal wave, tsunami, tidal water, overflow of any body
or water, or spray from any of these not driven by wind, including storm
surge, water which backs up through sewers or drains
, a. However if fire breaks out because of any of the above, insurance will
pay. (Covered resulting loss)
i. Example: Gas line is broken
◉ Explain Exclusion 4: Power Failures (Black-Outs) Answer: 1. Failure
of power or other utility service if the failure takes place off the
residence premises
a. Lack of power must lead to a "covered loss" on the premises such as
Freezing.
◉ Explain Exclusion 5: Neglect Answer: 1. Neglect of an insured to use
all reasonable means to save and preserve property at and after the time
of a loss
a. Must maintain property at all time of debris on roof or trimmed trees
or water leaks
b. Whenever you have had a claim, must take steps to mitigate the
damage. If failed, then insurance doesn't have to pay for anything you
could have/should have prevented.
◉ Explain Exclusion 8: Intentional Damage by you Answer: 1. Any loss
arising out of any act an "insured" commits or conspires with intent to
cause a loss.
