TEXAS PROPERTY AND CASUALTY
INSURANCE TEST 2025/2026 BANK 2
VERSIONS ACTUAL EXAM COMPLETE 550
QUESTIONS WITH DETAILED VERIFIED
ANSWERS AND STUDY GUIDE /ALREADY
GRADED A+
All of your belongings in the house are covered by in
a dwelling policy. - ....ANSWER...Coverage C
Lost rent is covered by . Limited by 20% of coverage
A. - ....ANSWER...Coverage D
Personal liability is covered by on a dwelling policy
as an endorsement. - ....ANSWER...Coverage L
Medical payments to others are covered by on a
dwelling policy as an endorsement. -
....ANSWER...Coverage M
1
,In comparison to the homeowners policy, the dwelling
policy provides coverage. - ....ANSWER...broader
What could be covered under a dwelling policy? -
....ANSWER...house with renters
A is considered personal property under a dwelling
policy. - ....ANSWER...pool table
Open peril coverage for the dwelling and broad coverage
for personal property is covered by the .-
....ANSWER...DP3
In addition to the perils that are automatically covered in
the DP-1, the insured may opt to have property covered
against . - ....ANSWER...extended coverage perils,
vandalism and malicious mischief
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
2
,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
Coverage for debris removal is provided in .-
3
, ....ANSWER...all dwelling forms
Compared to the homeowners policy, the dwelling policy
provides property coverage. - ....ANSWER...more
limited
Bob has a liability policy in the amount of 300/500/100.
How much coverage does he have per occurrence for
property damage liability? - ....ANSWER...$100,000.00
Several unsupervised young children wander about your
neighborhood. Although you have fenced your yard and
pool, they climb both fences and swim in your pool.
You've called their parents to complain and tell them that
you will not be responsible if one of the children is injured
or killed. When a child drowns in the pool, what type of
liability would apply to you? - ....ANSWER...Absolute
liability
4
INSURANCE TEST 2025/2026 BANK 2
VERSIONS ACTUAL EXAM COMPLETE 550
QUESTIONS WITH DETAILED VERIFIED
ANSWERS AND STUDY GUIDE /ALREADY
GRADED A+
All of your belongings in the house are covered by in
a dwelling policy. - ....ANSWER...Coverage C
Lost rent is covered by . Limited by 20% of coverage
A. - ....ANSWER...Coverage D
Personal liability is covered by on a dwelling policy
as an endorsement. - ....ANSWER...Coverage L
Medical payments to others are covered by on a
dwelling policy as an endorsement. -
....ANSWER...Coverage M
1
,In comparison to the homeowners policy, the dwelling
policy provides coverage. - ....ANSWER...broader
What could be covered under a dwelling policy? -
....ANSWER...house with renters
A is considered personal property under a dwelling
policy. - ....ANSWER...pool table
Open peril coverage for the dwelling and broad coverage
for personal property is covered by the .-
....ANSWER...DP3
In addition to the perils that are automatically covered in
the DP-1, the insured may opt to have property covered
against . - ....ANSWER...extended coverage perils,
vandalism and malicious mischief
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
2
,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
Coverage for debris removal is provided in .-
3
, ....ANSWER...all dwelling forms
Compared to the homeowners policy, the dwelling policy
provides property coverage. - ....ANSWER...more
limited
Bob has a liability policy in the amount of 300/500/100.
How much coverage does he have per occurrence for
property damage liability? - ....ANSWER...$100,000.00
Several unsupervised young children wander about your
neighborhood. Although you have fenced your yard and
pool, they climb both fences and swim in your pool.
You've called their parents to complain and tell them that
you will not be responsible if one of the children is injured
or killed. When a child drowns in the pool, what type of
liability would apply to you? - ....ANSWER...Absolute
liability
4
