Texas Personal Lines Insurance Exam
2025/2026 Exam Questions and Correct
Answers | New Update
In insurance, an offer is usually made when - 🧠ANSWER ✔✔An applicant
submits an application to the insurer
Under a personal auto policy, in which of the following locations would a
vehicle primarily garaged in California be covered - 🧠ANSWER ✔✔Any
other state
In a personal auto policy, the medical payments coverage is similar to -
🧠ANSWER ✔✔accident insurance, because it pays medical expenses
regardless of fault
The Federal Fair Credit Reporting Act - 🧠ANSWER ✔✔Regulates
consumer reports
,For a contract to be enforceable by law, the purpose of the contract must
be - 🧠ANSWER ✔✔Legal and not against public policy
In the personal auto policy, owned trailers being towed by an insured auto
are automatically covered for - 🧠ANSWER ✔✔UM coverage
The amount an insurer will pay under Coverage D(loss of use) depends on
- 🧠ANSWER ✔✔The amount of coverage on the dwelling
An insured's house is damaged by a fire and is uninhabitable. AS a result,
the insured has to rent an apartment until repairs are made. A dwlling
insurance policy will pay for the expense of renting the apartment. Which
type of broad or special form coverage does the insured have? -
🧠ANSWER ✔✔coverage E - additional living expense
All of the following are supplemental payments included in the liability
section of a personal auto policy EXCEPT - 🧠ANSWER ✔✔Up to $100 for
the cost to secure the release of a vehicle from an impoundment lot
following a covered accident
Payment for medical expenses, loss of wages, funeral expenses, -
🧠ANSWER ✔✔special- special damages are tangible damages that can be
, specifically measured in dollar amounts (such as out of pocket expenses
for medical, miscellaneous expenses, and loss of wages)
A policy that insures all property at multiple locations for a single amount is
referred to as - 🧠ANSWER ✔✔Blanket
All of the following statements describe the concept of strict liability
EXCEPT - 🧠ANSWER ✔✔It is imposed on defendants engaged in
hazardous activities
All of the following are conditions commonly found in the insurance policy
EXCEPT - 🧠ANSWER ✔✔Insuring Agreement
What type of information would be found in a policy's insuring agreement? -
🧠ANSWER ✔✔Renewal Dates
An insurance contract must contain all of the following to be considered
legally binding EXCEPT - 🧠ANSWER ✔✔Beneficiary's consent
In forming an insurance contract, when does acceptance usually occur? -
🧠ANSWER ✔✔When an insurer's underwriter approves coverage
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
2025/2026 Exam Questions and Correct
Answers | New Update
In insurance, an offer is usually made when - 🧠ANSWER ✔✔An applicant
submits an application to the insurer
Under a personal auto policy, in which of the following locations would a
vehicle primarily garaged in California be covered - 🧠ANSWER ✔✔Any
other state
In a personal auto policy, the medical payments coverage is similar to -
🧠ANSWER ✔✔accident insurance, because it pays medical expenses
regardless of fault
The Federal Fair Credit Reporting Act - 🧠ANSWER ✔✔Regulates
consumer reports
,For a contract to be enforceable by law, the purpose of the contract must
be - 🧠ANSWER ✔✔Legal and not against public policy
In the personal auto policy, owned trailers being towed by an insured auto
are automatically covered for - 🧠ANSWER ✔✔UM coverage
The amount an insurer will pay under Coverage D(loss of use) depends on
- 🧠ANSWER ✔✔The amount of coverage on the dwelling
An insured's house is damaged by a fire and is uninhabitable. AS a result,
the insured has to rent an apartment until repairs are made. A dwlling
insurance policy will pay for the expense of renting the apartment. Which
type of broad or special form coverage does the insured have? -
🧠ANSWER ✔✔coverage E - additional living expense
All of the following are supplemental payments included in the liability
section of a personal auto policy EXCEPT - 🧠ANSWER ✔✔Up to $100 for
the cost to secure the release of a vehicle from an impoundment lot
following a covered accident
Payment for medical expenses, loss of wages, funeral expenses, -
🧠ANSWER ✔✔special- special damages are tangible damages that can be
, specifically measured in dollar amounts (such as out of pocket expenses
for medical, miscellaneous expenses, and loss of wages)
A policy that insures all property at multiple locations for a single amount is
referred to as - 🧠ANSWER ✔✔Blanket
All of the following statements describe the concept of strict liability
EXCEPT - 🧠ANSWER ✔✔It is imposed on defendants engaged in
hazardous activities
All of the following are conditions commonly found in the insurance policy
EXCEPT - 🧠ANSWER ✔✔Insuring Agreement
What type of information would be found in a policy's insuring agreement? -
🧠ANSWER ✔✔Renewal Dates
An insurance contract must contain all of the following to be considered
legally binding EXCEPT - 🧠ANSWER ✔✔Beneficiary's consent
In forming an insurance contract, when does acceptance usually occur? -
🧠ANSWER ✔✔When an insurer's underwriter approves coverage
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
