TEXAS PROPERTY AND CASUALTY
INSURANCE EXAM WITH QUESTIONS AND
ANSWERS || GUARANTEED PASS|| ALREADY
GRADED A+|| LATEST UPDATE 2026
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
Marine policies cover imports, exports, domestic shipments, instrumentalities of
transportation, commercial property floaters, _____ and personal property
floaters. - ANSWER-cell towers
If Jim installs a dishwasher, and then tests it at your house and it doesn't work, it
is covered under his companies _____. - ANSWER-installation floater
The D & O policy is a _____ liability policy that protects against directors and
officers who commit noncriminal wrongful acts. - ANSWER-professional
,Injury to a third party caused by work that was completed negligently and put to
its intended us is covered under the _____ exposures. - ANSWER-completed
operations
Professional liability coverage can have a ____ clause. - ANSWER-consent to
settle
____ includes burglary, safe burglary, robbery, larceny, embezzlement and
forgery. - ANSWER-theft
Worker's compensation disability benefits are based on an employee's ____
wage. - ANSWER-weekly
Disability benefits do not begin until the ____ day. - ANSWER-8th
An insured rents a car while on vacation in Canada and causes an accident. He
is covered under an ____ personal auto policy. - ANSWER-unendorsed
The State Guaranty Fund was established to protect all
annuitants, policyholders and _____. - ANSWER-beneficiaries
Replacement cost coverage on the dwelling forms may be written for coverage
______. - ANSWER-A and B only
The ____ form should be used when it is difficult to provide the insurance
company with an accurate statement of values because of fluctuations in
inventory from month to month. - ANSWER-reporting
The method used to determine coverage if the adjuster and the insured disagree
about whether the peril is covered is called the _____ method. - ANSWER-
appraisal
, The commercial package policy excludes ____ coverage. - ANSWER-ocean
marine
The procedure for resolving a disagreement between the insured and insurer
about a loss is outlined in the ____. - ANSWER-conditions
Under the Valued Policy Law, the claim is payable at _____. - ANSWER-full
limit of liability
The insured had a pair of antique silver candlesticks valued at $2,000. A thief
stole 1 candlestick. Because the set was "broken", the remaining candlestick's
value was reduced to $250. Disregarding the deductible, the insurer would pay
_____. - ANSWER-$1750
Monica owns a $150,000 home. She carries 2 insurance policies on it: Company
A insures $100,000 and Company B insures $50,000. If she suffers a $9,000
covered loss to her home, how much will Company A pay under the policy? -
ANSWER-$6000
The insured has run a red light and hits another car causing injury to the driver
and damage to the car. The insured has what type of liability? - ANSWER-
direct
A policy used to insure separate pieces of jewelry is called a ____. - ANSWER-
personal articles floater
Which part of the insurance contract contains information about the effective
date of coverage, deductible, premium, and location of the insured property? -
ANSWER-declarations page
INSURANCE EXAM WITH QUESTIONS AND
ANSWERS || GUARANTEED PASS|| ALREADY
GRADED A+|| LATEST UPDATE 2026
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
Marine policies cover imports, exports, domestic shipments, instrumentalities of
transportation, commercial property floaters, _____ and personal property
floaters. - ANSWER-cell towers
If Jim installs a dishwasher, and then tests it at your house and it doesn't work, it
is covered under his companies _____. - ANSWER-installation floater
The D & O policy is a _____ liability policy that protects against directors and
officers who commit noncriminal wrongful acts. - ANSWER-professional
,Injury to a third party caused by work that was completed negligently and put to
its intended us is covered under the _____ exposures. - ANSWER-completed
operations
Professional liability coverage can have a ____ clause. - ANSWER-consent to
settle
____ includes burglary, safe burglary, robbery, larceny, embezzlement and
forgery. - ANSWER-theft
Worker's compensation disability benefits are based on an employee's ____
wage. - ANSWER-weekly
Disability benefits do not begin until the ____ day. - ANSWER-8th
An insured rents a car while on vacation in Canada and causes an accident. He
is covered under an ____ personal auto policy. - ANSWER-unendorsed
The State Guaranty Fund was established to protect all
annuitants, policyholders and _____. - ANSWER-beneficiaries
Replacement cost coverage on the dwelling forms may be written for coverage
______. - ANSWER-A and B only
The ____ form should be used when it is difficult to provide the insurance
company with an accurate statement of values because of fluctuations in
inventory from month to month. - ANSWER-reporting
The method used to determine coverage if the adjuster and the insured disagree
about whether the peril is covered is called the _____ method. - ANSWER-
appraisal
, The commercial package policy excludes ____ coverage. - ANSWER-ocean
marine
The procedure for resolving a disagreement between the insured and insurer
about a loss is outlined in the ____. - ANSWER-conditions
Under the Valued Policy Law, the claim is payable at _____. - ANSWER-full
limit of liability
The insured had a pair of antique silver candlesticks valued at $2,000. A thief
stole 1 candlestick. Because the set was "broken", the remaining candlestick's
value was reduced to $250. Disregarding the deductible, the insurer would pay
_____. - ANSWER-$1750
Monica owns a $150,000 home. She carries 2 insurance policies on it: Company
A insures $100,000 and Company B insures $50,000. If she suffers a $9,000
covered loss to her home, how much will Company A pay under the policy? -
ANSWER-$6000
The insured has run a red light and hits another car causing injury to the driver
and damage to the car. The insured has what type of liability? - ANSWER-
direct
A policy used to insure separate pieces of jewelry is called a ____. - ANSWER-
personal articles floater
Which part of the insurance contract contains information about the effective
date of coverage, deductible, premium, and location of the insured property? -
ANSWER-declarations page
