TEXAS PROPERTY AND CASUALTY INSURANCE
EXAMPREP TEST PAPER 2026 QUESTIONS AND
ANSWERS GRADED A+
◉ Certificate of authority. Answer: A document issued by the state that
allows an insurance company to operate in Texas.
◉ Transacting insurance. Answer: The process of conducting insurance
business, including selling policies and handling claims.
◉ Foreign, domestic, alien. Answer: Terms used to describe the location
of an insurance company: foreign (outside Texas), domestic (within
Texas), and alien (outside the U.S.).
◉ Stock, mutual. Answer: Types of insurance companies: stock
companies are owned by shareholders, while mutual companies are
owned by policyholders.
◉ Admitted/nonadmitted. Answer: Refers to whether an insurance
company is licensed to operate in a state (admitted) or not
(nonadmitted).
,◉ Texas Lloyds. Answer: A type of insurance organization in Texas that
operates under specific regulations.
◉ Agent/agency. Answer: A person or business authorized to sell
insurance on behalf of an insurance company.
◉ Nonresident agent. Answer: An insurance agent who is licensed to sell
insurance in a state where they do not reside.
◉ Temporary license. Answer: A short-term license granted to an
individual to sell insurance while they complete the full licensing
process.
◉ Limited license. Answer: A type of insurance license that restricts the
agent's authority to specific types of insurance.
◉ Managing general agent. Answer: An agent who has the authority to
manage an insurance company's operations in a specific area.
◉ Surplus lines. Answer: Insurance coverage provided by nonadmitted
insurers when coverage is not available from admitted insurers.
◉ Adjuster. Answer: A person who investigates and settles insurance
claims on behalf of an insurance company.
, ◉ Risk manager. Answer: A professional responsible for identifying and
mitigating risks within an organization.
◉ Emergency license. Answer: A special license granted to individuals
to sell insurance during a declared emergency.
◉ Unfair trade practices. Answer: Practices that are prohibited in the
insurance industry, including false advertising and misrepresentation.
◉ Claims methods and practices. Answer: The procedures and
techniques used by insurance companies to handle claims.
◉ False advertising. Answer: Providing misleading information about an
insurance product to entice customers.
◉ Misrepresentation. Answer: Providing false or misleading information
about an insurance policy or company.
◉ Defamation. Answer: The act of damaging someone's reputation
through false statements, which is prohibited in insurance marketing.
◉ Fraud. Answer: Deliberate deception to secure unfair or unlawful gain
in the insurance context.
EXAMPREP TEST PAPER 2026 QUESTIONS AND
ANSWERS GRADED A+
◉ Certificate of authority. Answer: A document issued by the state that
allows an insurance company to operate in Texas.
◉ Transacting insurance. Answer: The process of conducting insurance
business, including selling policies and handling claims.
◉ Foreign, domestic, alien. Answer: Terms used to describe the location
of an insurance company: foreign (outside Texas), domestic (within
Texas), and alien (outside the U.S.).
◉ Stock, mutual. Answer: Types of insurance companies: stock
companies are owned by shareholders, while mutual companies are
owned by policyholders.
◉ Admitted/nonadmitted. Answer: Refers to whether an insurance
company is licensed to operate in a state (admitted) or not
(nonadmitted).
,◉ Texas Lloyds. Answer: A type of insurance organization in Texas that
operates under specific regulations.
◉ Agent/agency. Answer: A person or business authorized to sell
insurance on behalf of an insurance company.
◉ Nonresident agent. Answer: An insurance agent who is licensed to sell
insurance in a state where they do not reside.
◉ Temporary license. Answer: A short-term license granted to an
individual to sell insurance while they complete the full licensing
process.
◉ Limited license. Answer: A type of insurance license that restricts the
agent's authority to specific types of insurance.
◉ Managing general agent. Answer: An agent who has the authority to
manage an insurance company's operations in a specific area.
◉ Surplus lines. Answer: Insurance coverage provided by nonadmitted
insurers when coverage is not available from admitted insurers.
◉ Adjuster. Answer: A person who investigates and settles insurance
claims on behalf of an insurance company.
, ◉ Risk manager. Answer: A professional responsible for identifying and
mitigating risks within an organization.
◉ Emergency license. Answer: A special license granted to individuals
to sell insurance during a declared emergency.
◉ Unfair trade practices. Answer: Practices that are prohibited in the
insurance industry, including false advertising and misrepresentation.
◉ Claims methods and practices. Answer: The procedures and
techniques used by insurance companies to handle claims.
◉ False advertising. Answer: Providing misleading information about an
insurance product to entice customers.
◉ Misrepresentation. Answer: Providing false or misleading information
about an insurance policy or company.
◉ Defamation. Answer: The act of damaging someone's reputation
through false statements, which is prohibited in insurance marketing.
◉ Fraud. Answer: Deliberate deception to secure unfair or unlawful gain
in the insurance context.
