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Texas Property and Casualty Insurance
2026/2027||VERIFIED EXAM|| QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST EXAM!!!
An insured suffers a windstorm loss in which the insured's
driveway is blocked by two of the insured's trees and two
of the neighbor's trees. The total amount of the removal
adds up to the following: three trees at $300 per tree, and
one tree at $600. How much will the insurer pay for the
loss? - ANSWER-$1,000.
Which of the following coverages is NOT included in the
basic dwelling policy? - ANSWER-Additional living
expense.
An insured with a homeowners policy has removed
property from the insured location to protect it from loss
that could be caused by a covered peril. The removal
coverage applies for: - ANSWER-30 days.
For commercial property or casualty insurance policies,
other than Ocean Marine, advance written notice of at
least 60 days must be provided to the first named insured
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whenever the renewal premium will increase by __ or
more. - ANSWER-30%
Coverage for all of the following is found in Section 1 of a
homeowners policy EXCEPT: - ANSWER-Personal liability
The basic dwelling form (DP-1) provides all of the
following coverages without endorsement EXCEPT: -
ANSWER-Coverage for additional living expense.
The difference in the contents coverage on an HO-3 and
HO-5 is which of the following? - ANSWER-Contents are
covered open peril on HO-5, and named peril on HO-3.
The main difference between an HO-4 and an HO-6 is: -
ANSWER-HO-6 provides limited dwelling coverage as well
as contents coverage.
The limited theft endorsement is intended for which type of
property? - ANSWER-An apartment building in which the
owner does not reside.
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If a loss occurs, the insured with a homeowners policy is
required to do the following EXCEPT: - ANSWER-Arrange
for an appraisal by an unbiased third party.
Which of the following examples of losses paid under an
HO-3 also would be paid under an HO-2 homeowners
policy? - ANSWER-Damage to the dwelling caused by
lava or dust from a volcanic eruption.
All of the following statements regarding personal property
coverage in the homeowners program are correct
EXCEPT: - ANSWER-The HO-3 policy covers the
mysterious disappearance of personal property.
A home is insured for $200,000 under an HO-3. Last
week, the owner purchased a new home and began to
move his personal property to the new residence. Last
night, vandals did $8,000 to the property that had been
moved to his new residence. Disregarding any deductible,
how much will the HO-3 pay? - ANSWER-$8,000.
When insurance is written on a dwelling form, which of the
following types of property would be insured under
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Coverage B (Other Structures)? - ANSWER-A garage
separated from the dwelling.
According to business property coverage form vacancy
condition, if a policy is issued to the owner of a building,
the building will be considered vacant if what portion of the
square footage is unused? - ANSWER-69%
The equipment breakdown coverage form values loss on
a/an: - ANSWER-Replacement cost basis.
Which of the following would be covered under a building
and personal property coverage form? - ANSWER-
Outdoor sign.
Which of the following claims would be included under the
dwelling policy? - ANSWER-Fire damage to the insured's
rowboat stored in the attached garage.
Which loss listed below would be fully covered by a
homeowners policy? - ANSWER-$2,000 silver tea set
stolen.
Texas Property and Casualty Insurance
2026/2027||VERIFIED EXAM|| QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST EXAM!!!
An insured suffers a windstorm loss in which the insured's
driveway is blocked by two of the insured's trees and two
of the neighbor's trees. The total amount of the removal
adds up to the following: three trees at $300 per tree, and
one tree at $600. How much will the insurer pay for the
loss? - ANSWER-$1,000.
Which of the following coverages is NOT included in the
basic dwelling policy? - ANSWER-Additional living
expense.
An insured with a homeowners policy has removed
property from the insured location to protect it from loss
that could be caused by a covered peril. The removal
coverage applies for: - ANSWER-30 days.
For commercial property or casualty insurance policies,
other than Ocean Marine, advance written notice of at
least 60 days must be provided to the first named insured
,2|Page
whenever the renewal premium will increase by __ or
more. - ANSWER-30%
Coverage for all of the following is found in Section 1 of a
homeowners policy EXCEPT: - ANSWER-Personal liability
The basic dwelling form (DP-1) provides all of the
following coverages without endorsement EXCEPT: -
ANSWER-Coverage for additional living expense.
The difference in the contents coverage on an HO-3 and
HO-5 is which of the following? - ANSWER-Contents are
covered open peril on HO-5, and named peril on HO-3.
The main difference between an HO-4 and an HO-6 is: -
ANSWER-HO-6 provides limited dwelling coverage as well
as contents coverage.
The limited theft endorsement is intended for which type of
property? - ANSWER-An apartment building in which the
owner does not reside.
,3|Page
If a loss occurs, the insured with a homeowners policy is
required to do the following EXCEPT: - ANSWER-Arrange
for an appraisal by an unbiased third party.
Which of the following examples of losses paid under an
HO-3 also would be paid under an HO-2 homeowners
policy? - ANSWER-Damage to the dwelling caused by
lava or dust from a volcanic eruption.
All of the following statements regarding personal property
coverage in the homeowners program are correct
EXCEPT: - ANSWER-The HO-3 policy covers the
mysterious disappearance of personal property.
A home is insured for $200,000 under an HO-3. Last
week, the owner purchased a new home and began to
move his personal property to the new residence. Last
night, vandals did $8,000 to the property that had been
moved to his new residence. Disregarding any deductible,
how much will the HO-3 pay? - ANSWER-$8,000.
When insurance is written on a dwelling form, which of the
following types of property would be insured under
, 4|Page
Coverage B (Other Structures)? - ANSWER-A garage
separated from the dwelling.
According to business property coverage form vacancy
condition, if a policy is issued to the owner of a building,
the building will be considered vacant if what portion of the
square footage is unused? - ANSWER-69%
The equipment breakdown coverage form values loss on
a/an: - ANSWER-Replacement cost basis.
Which of the following would be covered under a building
and personal property coverage form? - ANSWER-
Outdoor sign.
Which of the following claims would be included under the
dwelling policy? - ANSWER-Fire damage to the insured's
rowboat stored in the attached garage.
Which loss listed below would be fully covered by a
homeowners policy? - ANSWER-$2,000 silver tea set
stolen.
