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TEXAS INSURANCE LICENSE EXAM 2025
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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
Under a Commercial General Liability policy, all of the following
statements about the supplemental extended reporting period
are correct, except: - correct answer- The insurer may cancel
the SERP after the insured pays the premium
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
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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
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
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
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
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with the insurer's defense will: - correct answer- Be paid in
addition to the policy's liability limits
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 of the following must participate in a Workers'
Compensation Assigned Risk Plan? - correct answer- Insurers
that are authorized to write Workers' Compensation in the
voluntary market
A company that sells mobile equipment has its stock protected
under an Equipment Dealers Floater. Records of the company's
business, including itemized inventories and sales records,
must be retained for at least how long after the policy ends? -
correct answer- 3 years
Which is true of Coverage C of the Dwelling Policy? - correct
answer- Coverage C provides coverage for the personal
property of a guest
TEXAS INSURANCE LICENSE EXAM 2025
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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
Under a Commercial General Liability policy, all of the following
statements about the supplemental extended reporting period
are correct, except: - correct answer- The insurer may cancel
the SERP after the insured pays the premium
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
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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
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
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
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
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with the insurer's defense will: - correct answer- Be paid in
addition to the policy's liability limits
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 of the following must participate in a Workers'
Compensation Assigned Risk Plan? - correct answer- Insurers
that are authorized to write Workers' Compensation in the
voluntary market
A company that sells mobile equipment has its stock protected
under an Equipment Dealers Floater. Records of the company's
business, including itemized inventories and sales records,
must be retained for at least how long after the policy ends? -
correct answer- 3 years
Which is true of Coverage C of the Dwelling Policy? - correct
answer- Coverage C provides coverage for the personal
property of a guest
