Property and Casualty Exam Texas Newest
2026 Questions and Correct Detailed Answers
Already Graded A+
the insured must promptly tell the insurer about a ______ - CORRECT
ANSWER-claim
the other insurance clause is also known as the ____-____ _____ _______ -
CORRECT ANSWER-pro-rata liability clause
_____-____ does not mean equal, it is proportionate - CORRECT ANSWER-pro-
rata
the _____ _____ _____ act protects consumers against the circulation of
inaccurate or obsolete personal or financial information. - CORRECT ANSWER-
fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at
the time the customer relationship is initially established and thereafter annually.
- CORRECT ANSWER-gramm-leach-bliley act
,the ____ ____ insurance act applies to commercial policies only - CORRECT
ANSWER-terrorism risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils
insured against - CORRECT ANSWER-dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an
endorsement known as a _____ ______ ______ for an additional premium charge
- CORRECT ANSWER-personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and
flood but not _____ - CORRECT ANSWER-wind
on a dwelling policy, other structures coverage will apply to a structure rented out
as a _____ _____ - CORRECT ANSWER-private garage
____ is uncertainty of loss - CORRECT ANSWER-risk
____ is a transfer of risk from the insured to the insurer - CORRECT ANSWER-
insurance
,____ risk means there is no chance of gain. It is insurable. - CORRECT
ANSWER-pure
____ risk means there is a chance of a loss or a gain. It is not insurable. -
CORRECT ANSWER-speculative
a ____ is something that increases the risk. - CORRECT ANSWER-hazard
the principle of _____ governs property and casualty policies. It states that the
purpose of the policy is to restore the insured financially to where they were prior
to the loss - CORRECT ANSWER-indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy
to provide coverage. - CORRECT ANSWER-insurable interest
the law of _____ _____ is used to predict the likelihood of loss - CORRECT
ANSWER-large numbers
____ ____ ____ is replacement cost minus depreciation. - CORRECT ANSWER-
actual cash value
, ________ is a tort, or civil wrong; it is grounds for a lawsuit. - CORRECT
ANSWER-Negligence
_______ is the failure to act as a reasonable person would in the same set of
circumstances - CORRECT ANSWER-negligence
an _____ happens over a period of time - CORRECT ANSWER-Occurrence
a _____ may be oral or written - CORRECT ANSWER-binder
a _____ provides coverage until the policy is issued. it includes all coverages
provided by the policy. - CORRECT ANSWER-binder
a ____ is a literal truth - CORRECT ANSWER-warranty
a _______ is a substantial truth. in insurance, statements of the
applicant/policyowner are _______ - true to the best of their knowledge -
CORRECT ANSWER-representation
2026 Questions and Correct Detailed Answers
Already Graded A+
the insured must promptly tell the insurer about a ______ - CORRECT
ANSWER-claim
the other insurance clause is also known as the ____-____ _____ _______ -
CORRECT ANSWER-pro-rata liability clause
_____-____ does not mean equal, it is proportionate - CORRECT ANSWER-pro-
rata
the _____ _____ _____ act protects consumers against the circulation of
inaccurate or obsolete personal or financial information. - CORRECT ANSWER-
fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at
the time the customer relationship is initially established and thereafter annually.
- CORRECT ANSWER-gramm-leach-bliley act
,the ____ ____ insurance act applies to commercial policies only - CORRECT
ANSWER-terrorism risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils
insured against - CORRECT ANSWER-dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an
endorsement known as a _____ ______ ______ for an additional premium charge
- CORRECT ANSWER-personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and
flood but not _____ - CORRECT ANSWER-wind
on a dwelling policy, other structures coverage will apply to a structure rented out
as a _____ _____ - CORRECT ANSWER-private garage
____ is uncertainty of loss - CORRECT ANSWER-risk
____ is a transfer of risk from the insured to the insurer - CORRECT ANSWER-
insurance
,____ risk means there is no chance of gain. It is insurable. - CORRECT
ANSWER-pure
____ risk means there is a chance of a loss or a gain. It is not insurable. -
CORRECT ANSWER-speculative
a ____ is something that increases the risk. - CORRECT ANSWER-hazard
the principle of _____ governs property and casualty policies. It states that the
purpose of the policy is to restore the insured financially to where they were prior
to the loss - CORRECT ANSWER-indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy
to provide coverage. - CORRECT ANSWER-insurable interest
the law of _____ _____ is used to predict the likelihood of loss - CORRECT
ANSWER-large numbers
____ ____ ____ is replacement cost minus depreciation. - CORRECT ANSWER-
actual cash value
, ________ is a tort, or civil wrong; it is grounds for a lawsuit. - CORRECT
ANSWER-Negligence
_______ is the failure to act as a reasonable person would in the same set of
circumstances - CORRECT ANSWER-negligence
an _____ happens over a period of time - CORRECT ANSWER-Occurrence
a _____ may be oral or written - CORRECT ANSWER-binder
a _____ provides coverage until the policy is issued. it includes all coverages
provided by the policy. - CORRECT ANSWER-binder
a ____ is a literal truth - CORRECT ANSWER-warranty
a _______ is a substantial truth. in insurance, statements of the
applicant/policyowner are _______ - true to the best of their knowledge -
CORRECT ANSWER-representation
