TEXAS PROPERTY & CASUALTY
INSURANCE LATEST EXAM 2026 WITH
480 QUESTIONS AND VERIFIED
ACCURATE ANSERS | ALREADY
GRADED A+ | GUARANTEED PASS |
TEXAS PROPERTY AND CASUALTY
INSURANCE FINAL EXAM 2026
_____ coverage must be added to a dwelling policy by endorsement. - ANSWER-
Theft and liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount
of $10,000 damages the attached garage, how much of that amount is paid under
the Coverage B-Other Structures? - ANSWER-$0
Of the dwelling forms, which one of the following provides the broadest coverage?
- ANSWER-special
The special form (DP-3) covers the dwelling and other structures for ____. -
ANSWER-open perils
,In the dwelling forms, damage from vandalism is not covered if the building has
been vacant for more than ____. - ANSWER-60 days
A property owner wants to insure both the rental property and any of the tenant's
belongings if they are stolen. Which policy would you recommend and why? -
ANSWER-DP-3 special form and a separate tenant's policy to cover personal
property.
The dwelling policy will provide how much additional coverage for a fire
department service charge? - ANSWER-$500
An insured suffers a covered loss to some rental property that forces the tenant to
move to another location. Under which section of the dwelling policy would the
insured receive payment during the time the property is being repaired? -
ANSWER-Coverage D--Fair Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction
coverage or coverage for automatic increases in insurance? - ANSWER-by
endorsement
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to
the house, the property includes a detached garage, storage shed, and an artist's
studio. During a thunderstorm, the garage and storage shed are damaged by
lightning. The loss is $3,000 to the garage and $1,000 to the shed. What amount is
covered by the policy? - ANSWER-$3500
Wilson owns a 4-family apartment building. Which dwelling form(s) would
provide coverage against building damage caused by the freezing of plumbing,
heating, air conditioning, and sprinkler systems? - ANSWER-DP2 and DP3
,An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered
fire loss, the insured moves to a local hotel while repairs are being made to the
house. While staying in the hotel's penthouse suite, the insured uses room service,
always choosing the most expensive food and wine. The entire stay costs $12,000.
How much of that amount will the policy cover? - ANSWER-$10,000
Which part of an insurance policy describes the responsibilities and obligations of
both the insurance company and the insured under the policy? - ANSWER-
Conditions
The limits of liability are found in which of the following sections of a casualty
policy? - ANSWER-Declarations
The _____ page in an insurance contract contains information about the risk, the
effective date of coverage, deductible, premium amounts, coinsurance percentage,
and location of the insured property. - ANSWER-Declarations
The insured is looking for the amount of coverage in a property and casualty
policy. This information would be found in the ______. - ANSWER-declarations
The coverages offered by an insurance policy are described in the ____. -
ANSWER-insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of
the insured and the insurance company. - ANSWER-obligations
The list of perils covered under a policy is found in which part of the policy? -
ANSWER-Insuring agreement
, The Declarations page consists of 5 P's. Person or property, policy number, policy
term, policy limit and ____. - ANSWER-premium
The Insuring agreement describes coverage provided and which ____ are covered.
- ANSWER-perils
Lost rent is covered by _____. Limited by 20% of coverage A. - ANSWER-
Coverage D
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 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
INSURANCE LATEST EXAM 2026 WITH
480 QUESTIONS AND VERIFIED
ACCURATE ANSERS | ALREADY
GRADED A+ | GUARANTEED PASS |
TEXAS PROPERTY AND CASUALTY
INSURANCE FINAL EXAM 2026
_____ coverage must be added to a dwelling policy by endorsement. - ANSWER-
Theft and liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount
of $10,000 damages the attached garage, how much of that amount is paid under
the Coverage B-Other Structures? - ANSWER-$0
Of the dwelling forms, which one of the following provides the broadest coverage?
- ANSWER-special
The special form (DP-3) covers the dwelling and other structures for ____. -
ANSWER-open perils
,In the dwelling forms, damage from vandalism is not covered if the building has
been vacant for more than ____. - ANSWER-60 days
A property owner wants to insure both the rental property and any of the tenant's
belongings if they are stolen. Which policy would you recommend and why? -
ANSWER-DP-3 special form and a separate tenant's policy to cover personal
property.
The dwelling policy will provide how much additional coverage for a fire
department service charge? - ANSWER-$500
An insured suffers a covered loss to some rental property that forces the tenant to
move to another location. Under which section of the dwelling policy would the
insured receive payment during the time the property is being repaired? -
ANSWER-Coverage D--Fair Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction
coverage or coverage for automatic increases in insurance? - ANSWER-by
endorsement
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to
the house, the property includes a detached garage, storage shed, and an artist's
studio. During a thunderstorm, the garage and storage shed are damaged by
lightning. The loss is $3,000 to the garage and $1,000 to the shed. What amount is
covered by the policy? - ANSWER-$3500
Wilson owns a 4-family apartment building. Which dwelling form(s) would
provide coverage against building damage caused by the freezing of plumbing,
heating, air conditioning, and sprinkler systems? - ANSWER-DP2 and DP3
,An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered
fire loss, the insured moves to a local hotel while repairs are being made to the
house. While staying in the hotel's penthouse suite, the insured uses room service,
always choosing the most expensive food and wine. The entire stay costs $12,000.
How much of that amount will the policy cover? - ANSWER-$10,000
Which part of an insurance policy describes the responsibilities and obligations of
both the insurance company and the insured under the policy? - ANSWER-
Conditions
The limits of liability are found in which of the following sections of a casualty
policy? - ANSWER-Declarations
The _____ page in an insurance contract contains information about the risk, the
effective date of coverage, deductible, premium amounts, coinsurance percentage,
and location of the insured property. - ANSWER-Declarations
The insured is looking for the amount of coverage in a property and casualty
policy. This information would be found in the ______. - ANSWER-declarations
The coverages offered by an insurance policy are described in the ____. -
ANSWER-insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of
the insured and the insurance company. - ANSWER-obligations
The list of perils covered under a policy is found in which part of the policy? -
ANSWER-Insuring agreement
, The Declarations page consists of 5 P's. Person or property, policy number, policy
term, policy limit and ____. - ANSWER-premium
The Insuring agreement describes coverage provided and which ____ are covered.
- ANSWER-perils
Lost rent is covered by _____. Limited by 20% of coverage A. - ANSWER-
Coverage D
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 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
