TEXAS SURPLUS LINES COMPREHENSIVE EXAM
2026 FULL QUESTIONS AND CORRECT
ANSWERS
◉ In deciding not to own a car out of concern for the risks of accidents
or theft, what risk management technique is a person employing?
Answer: risk avoidance
◉ While a homeowner is out of town, a group of teenagers break into
her house, throw a beer party, and damage the interior without stealing
anything. Connie's resulting property insurance claim will be covered if
her policy covers what peril(s)? Answer: vandalism
◉ Claudette has an insurance policy that covers both of her autos. In
insurance terms, what are each of these autos considered? Answer:
exposure unit
◉ Which of the following is responsible for receiving, recording, and
reviewing surplus lines policies issued in Texas? Answer: Stamping
Office
◉ Luke pays a $300 premium for a personal umbrella policy in which
the insurance company promises to pay up to $1 million dollars for a
liability claim against Luke. This mismatch between the size of the
, premium and the potential size of the insurer's obligations results
because insurance policies are: Answer: aleatory contracts
◉ Who is the chief officer of the Texas Department of Insurance?
Answer: Commissioner
◉ Which of the following is responsible for ensuring that surplus lines
policies contain the necessary information and disclosures required of
such policies? Answer: Surplus Lines Stamping Office
◉ Because Celina had three auto accidents during the past nine months,
ABC Insurance Company does not want to provide coverage after the
current policy expires. What will ABC send Celina to notify her of its
decision? Answer: a nonrenewal notice
◉ Tyrone, unable to find a Texas insurer that will cover his business
risks, wants to buy insurance from Outcast Insurance, which is based in
Omaha, Nebraska. Outcast is not authorized to do business in Texas.
Who can Tyrone turn to for assistance in buying this insurance? Answer:
A surplus lines agent
◉ In which case would the risk most likely be subject to coverage under
a surplus lines insurance policy? Answer: Easy Company of Edinburgh
cannot find a Texas insurer willing to insure a risk located in San
Antonio
2026 FULL QUESTIONS AND CORRECT
ANSWERS
◉ In deciding not to own a car out of concern for the risks of accidents
or theft, what risk management technique is a person employing?
Answer: risk avoidance
◉ While a homeowner is out of town, a group of teenagers break into
her house, throw a beer party, and damage the interior without stealing
anything. Connie's resulting property insurance claim will be covered if
her policy covers what peril(s)? Answer: vandalism
◉ Claudette has an insurance policy that covers both of her autos. In
insurance terms, what are each of these autos considered? Answer:
exposure unit
◉ Which of the following is responsible for receiving, recording, and
reviewing surplus lines policies issued in Texas? Answer: Stamping
Office
◉ Luke pays a $300 premium for a personal umbrella policy in which
the insurance company promises to pay up to $1 million dollars for a
liability claim against Luke. This mismatch between the size of the
, premium and the potential size of the insurer's obligations results
because insurance policies are: Answer: aleatory contracts
◉ Who is the chief officer of the Texas Department of Insurance?
Answer: Commissioner
◉ Which of the following is responsible for ensuring that surplus lines
policies contain the necessary information and disclosures required of
such policies? Answer: Surplus Lines Stamping Office
◉ Because Celina had three auto accidents during the past nine months,
ABC Insurance Company does not want to provide coverage after the
current policy expires. What will ABC send Celina to notify her of its
decision? Answer: a nonrenewal notice
◉ Tyrone, unable to find a Texas insurer that will cover his business
risks, wants to buy insurance from Outcast Insurance, which is based in
Omaha, Nebraska. Outcast is not authorized to do business in Texas.
Who can Tyrone turn to for assistance in buying this insurance? Answer:
A surplus lines agent
◉ In which case would the risk most likely be subject to coverage under
a surplus lines insurance policy? Answer: Easy Company of Edinburgh
cannot find a Texas insurer willing to insure a risk located in San
Antonio
