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TEXAS PROPERTY & CASUALTY
LICENSE EXAM 2025| CERTIFIED
Q&A
Negligence - correct-answer-Failure to do or not to do something that ordinarily
should be or not be done that results in a loss
Legal Duty - correct-answer-Owe an obligation to act or not act
Breach of Duty - correct-answer-Failure to comply with a duty
Actual Loss - correct-answer-Another suffers a loss
Proximate Cause (Regarding Duties) - correct-answer-Breach of duty is the direct
cause of loss
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Bodily Injury - correct-answer-Injuries including pain and suffering
Property Damage - correct-answer-Damages including loss of use
Personal Injury - correct-answer-Damage to a persons character or reputation
What is an accident? - correct-answer-an event that is sudden and unexpected
What is occurrence? - correct-answer-an event that happens over time
Compensatory Damage - correct-answer-To indemnify the injured party
Punitive Damages - correct-answer-To punish the wrongdoer due to gross
negligence
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Domestic - correct-answer-Same state
Foreign - correct-answer-Another state
Alien - correct-answer-Another country
Stock Insurers - correct-answer-Owned by stockholders/shareholders
For profit company
Mutual Insurers - correct-answer-Owned by policyholders
Incorporated/Managed by board of directors chosen by policy holders
Self-Insurance - correct-answer-Business organizations that set up their own
savings accounts to pay for their own claims, property damage, or liability.
Residual Markets - correct-answer-Government (Fed & State) help provide
insurance that is not ordinarily available from private insurers.
TEXAS PROPERTY & CASUALTY
LICENSE EXAM 2025| CERTIFIED
Q&A
Negligence - correct-answer-Failure to do or not to do something that ordinarily
should be or not be done that results in a loss
Legal Duty - correct-answer-Owe an obligation to act or not act
Breach of Duty - correct-answer-Failure to comply with a duty
Actual Loss - correct-answer-Another suffers a loss
Proximate Cause (Regarding Duties) - correct-answer-Breach of duty is the direct
cause of loss
,2|Page
Bodily Injury - correct-answer-Injuries including pain and suffering
Property Damage - correct-answer-Damages including loss of use
Personal Injury - correct-answer-Damage to a persons character or reputation
What is an accident? - correct-answer-an event that is sudden and unexpected
What is occurrence? - correct-answer-an event that happens over time
Compensatory Damage - correct-answer-To indemnify the injured party
Punitive Damages - correct-answer-To punish the wrongdoer due to gross
negligence
, 3|Page
Domestic - correct-answer-Same state
Foreign - correct-answer-Another state
Alien - correct-answer-Another country
Stock Insurers - correct-answer-Owned by stockholders/shareholders
For profit company
Mutual Insurers - correct-answer-Owned by policyholders
Incorporated/Managed by board of directors chosen by policy holders
Self-Insurance - correct-answer-Business organizations that set up their own
savings accounts to pay for their own claims, property damage, or liability.
Residual Markets - correct-answer-Government (Fed & State) help provide
insurance that is not ordinarily available from private insurers.
