TEXAS PROPERTY AND CASUALTY EXAM AND
PRACTICE QUESTIONS NEWEST 2025/2026 ACTUAL
EXAM 200 QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+
1.What are the two types of compensatory damages?
..ANSWER..Special and general
2.Which of the following descries a contract of
reinsurance?..ANSWER..A first insurer issues insurance to compensate
another insurer for losses on contracts issued by that second insurer
3.A personal lines licensee is an agent-broker who is able to transact
coverage for all the following EXCEPT..ANSWER..Personal Aircraft
4.All of the following are requirements for determining an area that
qualifies for Low Cost Automobile Insurance EXCEPT..ANSWER..The
number of automobile accidents that occur within the county
5.What criteria must a person meet in order to be qualified to purchase
a good driver discount policy?..ANSWER..Being licensed to drive a
motor vehicle for the previous 3 years and has not had more than 1
violation point as determined by the CIC
6.Which of the following must be prominently displayed so that it can
be readily inspected on the licensee?..ANSWER..Currency and capacity
7.What is the primary function of the California Automotive Assigned
Risk Plan? CARRP..ANSWER..To put people who have trouble obtaining
insurance in touch with insurers who may be required by law to insure
them.
1|Page
,8.Which is NOT a duty of the Workers Compensation
Bureau?..ANSWER..Determine which claims are approved and which
are denied.
9.When can a person who sells real property require the use of a
specific insurance agent, broker or solicitor?..ANSWER..A buyer is
always ale to choose their insurance representative
10.At which point is a person licensed as a broker-agent deemed to be
acting as an insurance agent?..ANSWER..when a notice of appointment
is filed with the insurance commissioner
11.Who must be able to inspect records of insurance transactions made
available by agent-brokers at any time?..ANSWER..The Insurance
commissioner
12.Where must the address be printed for the principal office that is
required for every broker agent and resident insurance casualty broker-
agent?..ANSWER..Applications for license and renewals
13.How many classes of insurance are defined under California
insurance law including "miscellaneous" and
"reserved"?..ANSWER..There are a total of 20 classes of insurance
under CA insurance law with sub classes
14.When can a rate be denied by the Department?..ANSWER..when it is
inadequate and excessive
15.A "personal lines" agent or broker is allowed to transact what type
of insurance coverage?..ANSWER..Noncommercial automobile and
residential property
2|Page
, 16.What is the required rate discount under a good driver discount
policy?..ANSWER..20% below the rate the insured would have been
charged otherwise for the same coverage
17.Which condition is NOT required to be met for a surplus line broker
to advise any home state insured or applicate that coverage has been,
or will be obtained from a nonadmitted insurer?..ANSWER..An annual
payment as been received by the insurer?
18.Who is authorized to adjust or pay claims in excess of an amount
determined by the comissioner?..ANSWER..The managing general
agent
19.In order for an insurer to contract with the state compensation
insurance fund it must meet all of the following criteria
EXCEPT..ANSWER..The insurer has met all ration requirements for risk
based capital RBC
20.In conducting the business and affairs of the state compensation
insurance fund it must meet all of the following criteria
EXCEPT..ANSWER..Sell life insurance covering compensation benefits
21.Who is able to place business through the California Automobile
Assessed Risk Program?..ANSWER..Only agent/brokers licensed in fire
and casualty who have also been certified through CAARP
22.Under the California Vehicle Code all of the following are acceptable
to satisfy the financial responsibility requirement EXCEPT..ANSWER..A
company with an escrow account that is licensed to do business in
California
23.Which two pieces of information are required to be on all business
cards, printed quotes, and printed advertisements distributed
exclusively within the state?..ANSWER..The license number of the
licensee and the word "insurance"
3|Page
PRACTICE QUESTIONS NEWEST 2025/2026 ACTUAL
EXAM 200 QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+
1.What are the two types of compensatory damages?
..ANSWER..Special and general
2.Which of the following descries a contract of
reinsurance?..ANSWER..A first insurer issues insurance to compensate
another insurer for losses on contracts issued by that second insurer
3.A personal lines licensee is an agent-broker who is able to transact
coverage for all the following EXCEPT..ANSWER..Personal Aircraft
4.All of the following are requirements for determining an area that
qualifies for Low Cost Automobile Insurance EXCEPT..ANSWER..The
number of automobile accidents that occur within the county
5.What criteria must a person meet in order to be qualified to purchase
a good driver discount policy?..ANSWER..Being licensed to drive a
motor vehicle for the previous 3 years and has not had more than 1
violation point as determined by the CIC
6.Which of the following must be prominently displayed so that it can
be readily inspected on the licensee?..ANSWER..Currency and capacity
7.What is the primary function of the California Automotive Assigned
Risk Plan? CARRP..ANSWER..To put people who have trouble obtaining
insurance in touch with insurers who may be required by law to insure
them.
1|Page
,8.Which is NOT a duty of the Workers Compensation
Bureau?..ANSWER..Determine which claims are approved and which
are denied.
9.When can a person who sells real property require the use of a
specific insurance agent, broker or solicitor?..ANSWER..A buyer is
always ale to choose their insurance representative
10.At which point is a person licensed as a broker-agent deemed to be
acting as an insurance agent?..ANSWER..when a notice of appointment
is filed with the insurance commissioner
11.Who must be able to inspect records of insurance transactions made
available by agent-brokers at any time?..ANSWER..The Insurance
commissioner
12.Where must the address be printed for the principal office that is
required for every broker agent and resident insurance casualty broker-
agent?..ANSWER..Applications for license and renewals
13.How many classes of insurance are defined under California
insurance law including "miscellaneous" and
"reserved"?..ANSWER..There are a total of 20 classes of insurance
under CA insurance law with sub classes
14.When can a rate be denied by the Department?..ANSWER..when it is
inadequate and excessive
15.A "personal lines" agent or broker is allowed to transact what type
of insurance coverage?..ANSWER..Noncommercial automobile and
residential property
2|Page
, 16.What is the required rate discount under a good driver discount
policy?..ANSWER..20% below the rate the insured would have been
charged otherwise for the same coverage
17.Which condition is NOT required to be met for a surplus line broker
to advise any home state insured or applicate that coverage has been,
or will be obtained from a nonadmitted insurer?..ANSWER..An annual
payment as been received by the insurer?
18.Who is authorized to adjust or pay claims in excess of an amount
determined by the comissioner?..ANSWER..The managing general
agent
19.In order for an insurer to contract with the state compensation
insurance fund it must meet all of the following criteria
EXCEPT..ANSWER..The insurer has met all ration requirements for risk
based capital RBC
20.In conducting the business and affairs of the state compensation
insurance fund it must meet all of the following criteria
EXCEPT..ANSWER..Sell life insurance covering compensation benefits
21.Who is able to place business through the California Automobile
Assessed Risk Program?..ANSWER..Only agent/brokers licensed in fire
and casualty who have also been certified through CAARP
22.Under the California Vehicle Code all of the following are acceptable
to satisfy the financial responsibility requirement EXCEPT..ANSWER..A
company with an escrow account that is licensed to do business in
California
23.Which two pieces of information are required to be on all business
cards, printed quotes, and printed advertisements distributed
exclusively within the state?..ANSWER..The license number of the
licensee and the word "insurance"
3|Page
