InsTX-PCRM92 Property and Casualty Risk Manager (English) Exam - 100 Questions AND
CORRECT ANSWERS GRADE A
1. Which Texas agency regulates property and casualty insurance?
A) Texas Department of Insurance (TDI)
B) Texas Insurance Commission
C) Texas Board of Insurance
D) Texas Department of Regulatory Affairs
**ANSWER: A**
2. What is the minimum required bond amount for a Texas insurance adjuster?
A) $5,000
B) $10,000
C) $15,000
D) $20,000
**ANSWER: B**
3. According to Texas Insurance Code, what is the maximum time frame for acknowledging
a claim?
A) 5 days
B) 10 days
C) 15 days
D) 30 days
**ANSWER: C**
4. The "valued policy law" in Texas applies to:
A) All property insurance policies
,B) Total loss of real property
C) Partial losses only
D) Commercial properties only
**ANSWER: B**
5. What is the minimum required coverage for personal auto liability in Texas?
A) 15/30/5
B) 25/50/25
C) 30/60/25
D) 50/100/50
**ANSWER: C**
**EXPLANATION:** Texas minimum auto liability is 30/60/25 (30K per person, 60K per
accident, 25K property damage).
6. According to Texas regulations, what is the grace period for premium payment on
property policies?
A) 5 days
B) 10 days
C) 15 days
D) 30 days
**ANSWER: B**
7. Which endorsement provides coverage for ordinance or law requirements?
A) CP 04 05
B) CP 10 30
C) IL 09 01
D) HO 04 50
, **ANSWER: A**
8. The "Stowers Doctrine" in Texas law requires insurers to:
A) Settle claims promptly
B) Exercise good faith in settlement negotiations
C) Accept reasonable settlement demands
D) All of the above
**ANSWER: C**
**EXPLANATION:** The Stowers Doctrine requires insurers to accept reasonable
settlement demands within policy limits.
9. What is the maximum deductible allowed for Texas windstorm coverage?
A) 1%
B) 2%
C) 3%
D) 5%
**ANSWER: D**
10. According to Texas Insurance Code, what is the timeframe for completing claim
investigations?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
**ANSWER: C**
11. Which coverage form provides "all-risk" coverage for commercial property?
CORRECT ANSWERS GRADE A
1. Which Texas agency regulates property and casualty insurance?
A) Texas Department of Insurance (TDI)
B) Texas Insurance Commission
C) Texas Board of Insurance
D) Texas Department of Regulatory Affairs
**ANSWER: A**
2. What is the minimum required bond amount for a Texas insurance adjuster?
A) $5,000
B) $10,000
C) $15,000
D) $20,000
**ANSWER: B**
3. According to Texas Insurance Code, what is the maximum time frame for acknowledging
a claim?
A) 5 days
B) 10 days
C) 15 days
D) 30 days
**ANSWER: C**
4. The "valued policy law" in Texas applies to:
A) All property insurance policies
,B) Total loss of real property
C) Partial losses only
D) Commercial properties only
**ANSWER: B**
5. What is the minimum required coverage for personal auto liability in Texas?
A) 15/30/5
B) 25/50/25
C) 30/60/25
D) 50/100/50
**ANSWER: C**
**EXPLANATION:** Texas minimum auto liability is 30/60/25 (30K per person, 60K per
accident, 25K property damage).
6. According to Texas regulations, what is the grace period for premium payment on
property policies?
A) 5 days
B) 10 days
C) 15 days
D) 30 days
**ANSWER: B**
7. Which endorsement provides coverage for ordinance or law requirements?
A) CP 04 05
B) CP 10 30
C) IL 09 01
D) HO 04 50
, **ANSWER: A**
8. The "Stowers Doctrine" in Texas law requires insurers to:
A) Settle claims promptly
B) Exercise good faith in settlement negotiations
C) Accept reasonable settlement demands
D) All of the above
**ANSWER: C**
**EXPLANATION:** The Stowers Doctrine requires insurers to accept reasonable
settlement demands within policy limits.
9. What is the maximum deductible allowed for Texas windstorm coverage?
A) 1%
B) 2%
C) 3%
D) 5%
**ANSWER: D**
10. According to Texas Insurance Code, what is the timeframe for completing claim
investigations?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
**ANSWER: C**
11. Which coverage form provides "all-risk" coverage for commercial property?
