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Texas Property and Casualty Insurance 2026-2027
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100%VERIFIED
ANSWERS) |ALREADY GRADED A+|BRAND NEW!!
An insured has an $80,000 dwelling policy with a $500
deductible. In addition to the house, the property includes
a detached garage, storage shed, and an artist's studio.
During a thunderstorm, the garage and storage shed are
damaged by lightning. The loss is $3,000 to the garage
and $1,000 to the shed. What amount is covered by the
policy? - ANSWER-$3500
A policy may be amended only with a(n): - ANSWER-
endorsement
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The procedure for resolving a disagreement between an
insured and an insurance company about a loss is
described in which of the following parts of an insurance
policy? - ANSWER-Conditions
Who does a personal contract protect? - ANSWER-The
individual who owns the property.
Which one of the following terms indicates that an
insurance contract contains the enforceable promises of
only one party? - ANSWER-Unilateral
The principle that restores someone to the condition he
enjoyed before a loss is_____? - ANSWER-indemnity
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Bryce owns a $50,000 lake cabin that he has insured for
$40,000. He sustains a $5,000 covered loss. According to
the principle of indemnity, how much will his insurer pay? -
ANSWER-$5000
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 attempt to restore an insured to his pre-loss condition
is known as _____. - ANSWER-indemnification
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The insured is looking for the amount of coverage in a
property and casualty policy. This information would be
found in the ______. - ANSWER-declarations
Jennifer and David signed a homeowners insurance
application for coverage on their home. They did not
divulge that last year their garage burned down after their
16-year-old son left a cigarette burning. The agent sent in
the application and a policy was issued. When another fire
occurred 2 months after the policy was issued, the
company voided the policy because the agent would not
have sent in the application if he had known of the prior
loss. Which contract principle does this situation describe?
- ANSWER-Utmost good faith
Texas Property and Casualty Insurance 2026-2027
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100%VERIFIED
ANSWERS) |ALREADY GRADED A+|BRAND NEW!!
An insured has an $80,000 dwelling policy with a $500
deductible. In addition to the house, the property includes
a detached garage, storage shed, and an artist's studio.
During a thunderstorm, the garage and storage shed are
damaged by lightning. The loss is $3,000 to the garage
and $1,000 to the shed. What amount is covered by the
policy? - ANSWER-$3500
A policy may be amended only with a(n): - ANSWER-
endorsement
,2|Page
The procedure for resolving a disagreement between an
insured and an insurance company about a loss is
described in which of the following parts of an insurance
policy? - ANSWER-Conditions
Who does a personal contract protect? - ANSWER-The
individual who owns the property.
Which one of the following terms indicates that an
insurance contract contains the enforceable promises of
only one party? - ANSWER-Unilateral
The principle that restores someone to the condition he
enjoyed before a loss is_____? - ANSWER-indemnity
,3|Page
Bryce owns a $50,000 lake cabin that he has insured for
$40,000. He sustains a $5,000 covered loss. According to
the principle of indemnity, how much will his insurer pay? -
ANSWER-$5000
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 attempt to restore an insured to his pre-loss condition
is known as _____. - ANSWER-indemnification
, 4|Page
The insured is looking for the amount of coverage in a
property and casualty policy. This information would be
found in the ______. - ANSWER-declarations
Jennifer and David signed a homeowners insurance
application for coverage on their home. They did not
divulge that last year their garage burned down after their
16-year-old son left a cigarette burning. The agent sent in
the application and a policy was issued. When another fire
occurred 2 months after the policy was issued, the
company voided the policy because the agent would not
have sent in the application if he had known of the prior
loss. Which contract principle does this situation describe?
- ANSWER-Utmost good faith
