TX-PC06 General Lines - Property &
Casualty EXAM QUESTIONS AND
ANSWERS - SOLVED (Newest 2026)
Who receives the broadest coverage of all people listed in the policy? - CORRECT ANSWERS
named insured
In property insurance, who is listed as Additional Insured? - CORRECT ANSWERS a
mortgagee or leinholder
When a person is restored to the same financial condition as before the loss, this is called? - CORRECT
ANSWERS 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? - CORRECT ANSWERS Indemnity
When the insurer considers depreciation in the settling of a loss, this is known as? - CORRECT ANSWERS
Principal of Indemnity
What does it mean to be a Named Insured in a property policy? - CORRECT ANSWERS
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? - CORRECT ANSWERS Insurable Interest
Insurable interest must exist when? - CORRECT ANSWERS at the time of loss
,Exposure to the same harmful conditions over a period of time leading to a loss - CORRECT ANSWERS
occurrence
What is it called when a policy is ended before the expiration date? - CORRECT ANSWERS
cancellation
What is it called when a policy is ended at the expiration date? - CORRECT ANSWERS 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? - CORRECT ANSWERS binder
What is a policy form used to revise coverage in an in-force property or casualty policy? - CORRECT
ANSWERS endorsement
What is a claims dispute resolution method designed to settle a question of coverage? - CORRECT
ANSWERS arbitration
What is a claims dispute resolution method designed to settle a question about the amount of claim
payout? - CORRECT ANSWERS appraisal
What condition applies when the insured and the insurer can't agree on the value of a loss? - CORRECT
ANSWERS appraisal
Who is the current Commissioner of Insurance in Texas (in 2025)? - CORRECT ANSWERS
Cassie Brown
How does a person become the Commissioner of Insurance? - CORRECT ANSWERS 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
b. prosecutes insurance violations
c. enforces insurance rules and law
d. sentences violators to jail or prison - CORRECT ANSWERS c. enforces insurance rules and
law
Who approves insurance company endorsements? - CORRECT ANSWERS Texas
Commissioner of Insurance
Who is not allowed to request information about fraudulent claims? - CORRECT ANSWERS
insured
How often does the Texas Department of Insurance examine the books and records of each admitted
insurer? - CORRECT ANSWERS once every 5 years
A required fund set up by the insurer for the protection of its policyholders - CORRECT ANSWERS
reinsurance reserves
What is a domestic insurer? - CORRECT ANSWERS An insurer whose home office is in Texas
or is incorporated in Texas.
What is a foreign insurer? - CORRECT ANSWERS 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? -
CORRECT ANSWERS alien insurer
Casualty EXAM QUESTIONS AND
ANSWERS - SOLVED (Newest 2026)
Who receives the broadest coverage of all people listed in the policy? - CORRECT ANSWERS
named insured
In property insurance, who is listed as Additional Insured? - CORRECT ANSWERS a
mortgagee or leinholder
When a person is restored to the same financial condition as before the loss, this is called? - CORRECT
ANSWERS 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? - CORRECT ANSWERS Indemnity
When the insurer considers depreciation in the settling of a loss, this is known as? - CORRECT ANSWERS
Principal of Indemnity
What does it mean to be a Named Insured in a property policy? - CORRECT ANSWERS
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? - CORRECT ANSWERS Insurable Interest
Insurable interest must exist when? - CORRECT ANSWERS at the time of loss
,Exposure to the same harmful conditions over a period of time leading to a loss - CORRECT ANSWERS
occurrence
What is it called when a policy is ended before the expiration date? - CORRECT ANSWERS
cancellation
What is it called when a policy is ended at the expiration date? - CORRECT ANSWERS 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? - CORRECT ANSWERS binder
What is a policy form used to revise coverage in an in-force property or casualty policy? - CORRECT
ANSWERS endorsement
What is a claims dispute resolution method designed to settle a question of coverage? - CORRECT
ANSWERS arbitration
What is a claims dispute resolution method designed to settle a question about the amount of claim
payout? - CORRECT ANSWERS appraisal
What condition applies when the insured and the insurer can't agree on the value of a loss? - CORRECT
ANSWERS appraisal
Who is the current Commissioner of Insurance in Texas (in 2025)? - CORRECT ANSWERS
Cassie Brown
How does a person become the Commissioner of Insurance? - CORRECT ANSWERS 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
b. prosecutes insurance violations
c. enforces insurance rules and law
d. sentences violators to jail or prison - CORRECT ANSWERS c. enforces insurance rules and
law
Who approves insurance company endorsements? - CORRECT ANSWERS Texas
Commissioner of Insurance
Who is not allowed to request information about fraudulent claims? - CORRECT ANSWERS
insured
How often does the Texas Department of Insurance examine the books and records of each admitted
insurer? - CORRECT ANSWERS once every 5 years
A required fund set up by the insurer for the protection of its policyholders - CORRECT ANSWERS
reinsurance reserves
What is a domestic insurer? - CORRECT ANSWERS An insurer whose home office is in Texas
or is incorporated in Texas.
What is a foreign insurer? - CORRECT ANSWERS 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? -
CORRECT ANSWERS alien insurer
