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TEXAS INSURANCE LICENSE EXAM QUESTIONS
WITH CORRECTANSWERS | LATEST UPDATE
2026/2027 | GRADED A+.
Unless otherwise stated by the policy, property covered by the
Building and Personal Property Coverage Form is valued on
what basis? - correct answer- Actual cash value
Which of the following statements is correct regarding PIP
coverage in Texas? - correct answer- PIP coverage covers
insureds and their guests without regard to fault or to
coordination of benefits
Which of the following statements regarding types of property
loss is incorrect? - correct answer- Direct losses include
additional living expenses
Under a Commercial General Liability policy, all of the
following statements about the supplemental extended
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reporting period are correct, except: - correct answer- The
insurer may cancel the SERP after the insured pays the
premium
Commercial Crime insurance policies are typically able to
cover losses resulting from all of the following, except: -
correct answer- The mysterious disappearance of property
An insured with a Personal Auto policy on their car is using a
non-owned auto to run errands. Under the insured's policy,
liability coverage for use of the non-owned auto is: - correct
answer- Provided on an excess basis
What is the maximum amount supplementary payments
coverage provided by a Business Auto policy will pay for the
cost of bail bonds related to a covered accident? - correct
answer- $2,000
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Under a Business Auto policy, which of the following
statements about towing coverage provided under the policy's
physical damage coverage is correct? - correct answer- Labor
must be performed at the place of disablement to be covered
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All of the following are common law defenses against
negligence, except: - correct answer- Statute of limitations
Under Coverage C - Household Personal Property on a Farm
Property policy, coverage is provided for: - correct answer-
Furniture in the dwelling
Which is true of Coverage C of the Dwelling Policy? - correct
answer- Coverage C provides coverage for the personal
property of a guest
After unintentionally running a red light, L causes an accident
with T. T's sedan is badly damaged, and T's arm is broken. A
few months after the accident, T brings a suit against L,
asking for damages for medical costs incurred for the broken
arm and other injuries sustained in the accident. Under Part A
of L's Personal Auto policy, supplementary payments in
connection with the insurer's defense will: - correct answer-
Be paid in addition to the policy's liability limits
After a building loss, the insured on a Businessowners policy
incurs extra expenses to minimize the suspension of business.
TEXAS INSURANCE LICENSE EXAM QUESTIONS
WITH CORRECTANSWERS | LATEST UPDATE
2026/2027 | GRADED A+.
Unless otherwise stated by the policy, property covered by the
Building and Personal Property Coverage Form is valued on
what basis? - correct answer- Actual cash value
Which of the following statements is correct regarding PIP
coverage in Texas? - correct answer- PIP coverage covers
insureds and their guests without regard to fault or to
coordination of benefits
Which of the following statements regarding types of property
loss is incorrect? - correct answer- Direct losses include
additional living expenses
Under a Commercial General Liability policy, all of the
following statements about the supplemental extended
,2 | Page
reporting period are correct, except: - correct answer- The
insurer may cancel the SERP after the insured pays the
premium
Commercial Crime insurance policies are typically able to
cover losses resulting from all of the following, except: -
correct answer- The mysterious disappearance of property
An insured with a Personal Auto policy on their car is using a
non-owned auto to run errands. Under the insured's policy,
liability coverage for use of the non-owned auto is: - correct
answer- Provided on an excess basis
What is the maximum amount supplementary payments
coverage provided by a Business Auto policy will pay for the
cost of bail bonds related to a covered accident? - correct
answer- $2,000
,3 | Page
Thank you for Purchasing this exam
Study Guide. We provide high-quality
academic materials to help students
excel in exams. Our other Services
include but not limited to: academic
research, University & College
assignments writing, essay writing,
Online Classes, and research projects.
Our services are reliable, affordable,
and plagiarism-free. All the Best in your
Exam. For more information; Contact
us at: or
0R +254
741484450
Under a Business Auto policy, which of the following
statements about towing coverage provided under the policy's
physical damage coverage is correct? - correct answer- Labor
must be performed at the place of disablement to be covered
, 4 | Page
All of the following are common law defenses against
negligence, except: - correct answer- Statute of limitations
Under Coverage C - Household Personal Property on a Farm
Property policy, coverage is provided for: - correct answer-
Furniture in the dwelling
Which is true of Coverage C of the Dwelling Policy? - correct
answer- Coverage C provides coverage for the personal
property of a guest
After unintentionally running a red light, L causes an accident
with T. T's sedan is badly damaged, and T's arm is broken. A
few months after the accident, T brings a suit against L,
asking for damages for medical costs incurred for the broken
arm and other injuries sustained in the accident. Under Part A
of L's Personal Auto policy, supplementary payments in
connection with the insurer's defense will: - correct answer-
Be paid in addition to the policy's liability limits
After a building loss, the insured on a Businessowners policy
incurs extra expenses to minimize the suspension of business.
