TEXAS PROPERTY & CASUALTY
LICENSE EXAM 2025 QUESTIONS AND
ANSWERS
Property vs Casualty: What is considered property? - ANS Structure & Personal Property
Property vs Casualty: What is considered casualty? - ANS Non-property losses. Legal liability
to others. 3rd Party
Risk - ANS uncertainty of financial loss
Pure Risk - ANS Chance of Loss
Speculative Risk - ANS Chance of Loss or Gain (Gamble)
Insurance (covers which type of risk?) - ANS Pure Risk Only
How does the law of large numbers apply in insurance? - ANS Actuaries use the law of large
numbers to estimate claims
What is the law of large numbers? - ANS as the number of a similar loss exposure increases,
the more accurate claims can be predicted from the group.
What is a peril? - ANS cause of loss
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, What is a hazard? - ANS things that increase the chance of a peril happening
Three types of hazards - ANS Physical: visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause - ANS First cause in an unbroken chain of events
Elements of a legal contract (CALC) - ANS C - Competent parties (18/Right frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? - ANS Information believed to be true.
What is misrepresentation? - ANS Information that is not true. False information.
What is material misrepresentation? - ANS Information that is not true but would have
caused the insurer not to issue the policy. (4 prev spd tix)
What is fraud? - ANS An all out effort by one party to deceive and cheat the other.
What is warranty? - ANS Guarantee that an insured will or will not do something
What are the four major parts to an insurance policy structure? (DICE) - ANS D - Declarations
Page (First Page)
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
LICENSE EXAM 2025 QUESTIONS AND
ANSWERS
Property vs Casualty: What is considered property? - ANS Structure & Personal Property
Property vs Casualty: What is considered casualty? - ANS Non-property losses. Legal liability
to others. 3rd Party
Risk - ANS uncertainty of financial loss
Pure Risk - ANS Chance of Loss
Speculative Risk - ANS Chance of Loss or Gain (Gamble)
Insurance (covers which type of risk?) - ANS Pure Risk Only
How does the law of large numbers apply in insurance? - ANS Actuaries use the law of large
numbers to estimate claims
What is the law of large numbers? - ANS as the number of a similar loss exposure increases,
the more accurate claims can be predicted from the group.
What is a peril? - ANS cause of loss
1 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
, What is a hazard? - ANS things that increase the chance of a peril happening
Three types of hazards - ANS Physical: visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause - ANS First cause in an unbroken chain of events
Elements of a legal contract (CALC) - ANS C - Competent parties (18/Right frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? - ANS Information believed to be true.
What is misrepresentation? - ANS Information that is not true. False information.
What is material misrepresentation? - ANS Information that is not true but would have
caused the insurer not to issue the policy. (4 prev spd tix)
What is fraud? - ANS An all out effort by one party to deceive and cheat the other.
What is warranty? - ANS Guarantee that an insured will or will not do something
What are the four major parts to an insurance policy structure? (DICE) - ANS D - Declarations
Page (First Page)
2 Copyright ©2025 BRAINBARTER ALL RIGHTS RESERVED
