TX PC06 GENERAL LINES - PROPERTY
& CASUALTY EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Who receives the broadest coverage of all people listed in the policy? - ANS named insured
In property insurance, who is listed as Additional Insured? - ANS a mortgagee or leinholder
When a person is restored to the same financial condition as before the loss, this is called? -
ANS indemnity
If a person with a property policy is given an amount of money after a loss which will buy
another property of equal value, this would be called? - ANS Indemnity
When the insurer considers depreciation in the settling of a loss, this is known as? -
ANS Principal of Indemnity
What does it mean to be a Named Insured in a property policy? - ANS anyone listed in the
policy
What is the principle that requires the insured to suffer financially in the event of a loss in order
to obtain insurance and collect claim payment? - ANS Insurable Interest
Insurable interest must exist when? - ANS at the time of loss
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,Exposure to the same harmful conditions over a period of time leading to a loss -
ANS occurrence
What is it called when a policy is ended before the expiration date? - ANS cancellation
What is it called when a policy is ended at the expiration date? - ANS non-renewal
What is a written or verbal agreement showing certain amounts of coverage are in force on a
specified date as temporary proof of insurance? - ANS binder
What is a policy form used to revise coverage in an in-force property or casualty policy? -
ANS endorsement
What is a claims dispute resolution method designed to settle a question of coverage? -
ANS arbitration
What is a claims dispute resolution method designed to settle a question about the amount of
claim payout? - ANS appraisal
What condition applies when the insured and the insurer can't agree on the value of a loss? -
ANS appraisal
Who is the current Commissioner of Insurance in Texas (in 2025)? - ANS Cassie Brown
How does a person become the Commissioner of Insurance? - ANS he/she is appointed by
the Governor
Which of these is a power of the Commissioner of Insurance in Texas?
a. makes and sets insurance laws
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, b. prosecutes insurance violations
c. enforces insurance rules and law
d. sentences violators to jail or prison - ANS c. enforces insurance rules and law
Who approves insurance company endorsements? - ANS Texas Commissioner of Insurance
Who is not allowed to request information about fraudulent claims? - ANS insured
How often does the Texas Department of Insurance examine the books and records of each
admitted insurer? - ANS once every 5 years
A required fund set up by the insurer for the protection of its policyholders - ANS reinsurance
reserves
What is a domestic insurer? - ANS An insurer whose home office is in Texas or is incorporated
in Texas.
What is a foreign insurer? - ANS An insurer whose home office is in any state other than
Texas or is incorporated in any state other than Texas.
What is an insurer with a home office in or who is incorporated in a country other than the US
called? - ANS alien insurer
What does it mean to be an admitted insurer? - ANS an insurer who is allowed to transact
insurance in Texas and has a Certificate of Authority
How much notice must be given for revoking an insurer's Certificate of Authority? - ANS 10
days notice
30 days for a hearing
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
& CASUALTY EXAM QUESTIONS AND
ANSWERS GRADED A+ 2025/2026
Who receives the broadest coverage of all people listed in the policy? - ANS named insured
In property insurance, who is listed as Additional Insured? - ANS a mortgagee or leinholder
When a person is restored to the same financial condition as before the loss, this is called? -
ANS indemnity
If a person with a property policy is given an amount of money after a loss which will buy
another property of equal value, this would be called? - ANS Indemnity
When the insurer considers depreciation in the settling of a loss, this is known as? -
ANS Principal of Indemnity
What does it mean to be a Named Insured in a property policy? - ANS anyone listed in the
policy
What is the principle that requires the insured to suffer financially in the event of a loss in order
to obtain insurance and collect claim payment? - ANS Insurable Interest
Insurable interest must exist when? - ANS at the time of loss
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,Exposure to the same harmful conditions over a period of time leading to a loss -
ANS occurrence
What is it called when a policy is ended before the expiration date? - ANS cancellation
What is it called when a policy is ended at the expiration date? - ANS non-renewal
What is a written or verbal agreement showing certain amounts of coverage are in force on a
specified date as temporary proof of insurance? - ANS binder
What is a policy form used to revise coverage in an in-force property or casualty policy? -
ANS endorsement
What is a claims dispute resolution method designed to settle a question of coverage? -
ANS arbitration
What is a claims dispute resolution method designed to settle a question about the amount of
claim payout? - ANS appraisal
What condition applies when the insured and the insurer can't agree on the value of a loss? -
ANS appraisal
Who is the current Commissioner of Insurance in Texas (in 2025)? - ANS Cassie Brown
How does a person become the Commissioner of Insurance? - ANS he/she is appointed by
the Governor
Which of these is a power of the Commissioner of Insurance in Texas?
a. makes and sets insurance laws
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, b. prosecutes insurance violations
c. enforces insurance rules and law
d. sentences violators to jail or prison - ANS c. enforces insurance rules and law
Who approves insurance company endorsements? - ANS Texas Commissioner of Insurance
Who is not allowed to request information about fraudulent claims? - ANS insured
How often does the Texas Department of Insurance examine the books and records of each
admitted insurer? - ANS once every 5 years
A required fund set up by the insurer for the protection of its policyholders - ANS reinsurance
reserves
What is a domestic insurer? - ANS An insurer whose home office is in Texas or is incorporated
in Texas.
What is a foreign insurer? - ANS An insurer whose home office is in any state other than
Texas or is incorporated in any state other than Texas.
What is an insurer with a home office in or who is incorporated in a country other than the US
called? - ANS alien insurer
What does it mean to be an admitted insurer? - ANS an insurer who is allowed to transact
insurance in Texas and has a Certificate of Authority
How much notice must be given for revoking an insurer's Certificate of Authority? - ANS 10
days notice
30 days for a hearing
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
