Free Property and Casualty Insurance Basics Practice Questions
Texas General Lines — Property & Casualty exam (series InsTX-PC06) — 113 practice questions.
Subtopics: Guaranty association, Form approval, Commercial cancellation, Prompt payment of property claim, Underwriting guidelines, Insurable interest, Liquidated demand, Cancellation refund, Proof of loss, Subrogation, Rate filing, Excessive rate, Large risk exemption, Form disapproval, Surplus lines eligibility, Surplus lines notice, Surplus lines tax rate, Surplus lines capital, Commercial nonrenewal notice, Commercial cancellation notice, Renewal policy cancellation, Material change on renewal, Reasons for nonrenewal, Commercial declination, Accept or reject claim, Additional time to decide, Arson claims, Catastrophe extension, Payment delay penalty, Surplus lines claim timing, Liability settlement notice, Prompt-pay exclusions, Liquidated demand scope, Overinsurance, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, Replacement cost, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, Comparative negligence, Strict liability, Vicarious liability, Punitive damages, Special vs general damages, Proximate cause, Absolute liability, Hold harmless, Bailee liability, Attractive nuisance, Res ipsa loquitur, Coinsurance calculation, Actual cash value calculation, Split limits application, Underwriting, Credit-based insurance scores, Loss ratio, Insureds, Cancellation, Policy territory, No benefit to bailee, Duty to defend, Premium audit, Claim settlement, Appraisal, Duties after loss, Abandonment, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. If an admitted Texas property and casualty insurer becomes insolvent, covered claims are paid by the:
Texas Property and Casualty Insurance Guaranty Association
The TPCIGA pays covered claims of insolvent admitted P&C insurers, subject to statutory limits.
2. In Texas, most property and casualty policy forms generally must be:
Filed with and approved by TDI
Most property and casualty forms must be filed with TDI at least 60 days before use; a filed form is approved after 60 days unless the commissioner acts.
3. After the first 60 days of its initial term, a Texas commercial property or general liability policy may be cancelled midterm only for reasons such as:
Nonpayment of premium or fraud in obtaining coverage
After 60 days (and at any time on a renewal policy) cancellation is limited to fraud in obtaining coverage, nonpayment, an increase in hazard within the insured's control, or loss of reinsurance.
4. After an admitted insurer notifies a Texas claimant that a first-party claim will be paid, payment generally must be made within:
5 business days
The insurer must pay an accepted claim within 5 business days after notifying the claimant of acceptance.
All General Lines — Property & Casualty topics
Practice: Property and Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
