Texas Property & Casualty Insurance License Exam Overview
The Texas General Lines Property & Casualty Exam is administered by Prometric on behalf of the Texas Department of Insurance (TDI). Texas is the second-largest insurance market in the nation with unique challenges including hurricane exposure along the Gulf Coast.
Passing this exam qualifies you to sell property, casualty, and auto insurance in Texas—serving nearly 30 million residents in one of the fastest-growing states with massive demand for homeowners, auto, and commercial insurance.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Time Limit | 2.5 hours |
| Passing Score | 70% (105 correct answers) |
| Exam Fee | $62 |
| Pre-licensing Education | 40 hours required |
| Testing Vendor | Prometric |
| License Term | 2 years |
Why Get P&C Licensed in Texas?
- Second-largest market — Nearly 30 million residents
- High growth state — Population boom creates demand
- Windstorm exposure — TWIA specialization opportunities
- No state income tax — Retain more of your earnings
- Diverse economy — Commercial insurance needs
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Key Topics Covered on the Exam
1. Property Insurance (30%)
Homeowners Insurance:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 forms
- Coverage A through F breakdown
- Texas-specific endorsements
- Replacement cost vs. actual cash value
Texas Windstorm Insurance Association (TWIA):
- Covers coastal counties (first-tier)
- Wind and hail coverage only
- Eligibility requirements
- WPI-8 certification requirements
- Coverage limits and deductibles
Commercial Property:
- Building and personal property coverage
- Business interruption insurance
- Builder's risk coverage
- Inland marine
2. Liability Insurance (30%)
Personal Liability:
- Homeowners liability coverage
- Personal umbrella policies
- Medical payments coverage
Commercial Liability:
- Commercial General Liability (CGL)
- Professional liability (E&O)
- Products and completed operations
- Contractual liability
Workers' Compensation:
- Texas is non-compulsory (unique)
- Employer can choose to opt out
- Non-subscriber alternatives
- Texas Mutual Insurance Company
3. Auto Insurance (20%)
Texas Financial Responsibility Law:
| Coverage | Minimum Requirement |
|---|---|
| Bodily Injury (per person) | $30,000 |
| Bodily Injury (per accident) | $60,000 |
| Property Damage | $25,000 |
Additional Auto Topics:
- Personal Injury Protection (PIP) optional
- Uninsured/underinsured motorist coverage
- Texas Automobile Insurance Plan Association
- Good driver discounts
- Texas auto assigned risk pool
4. Texas Insurance Code (15%)
TDI Regulations:
- Texas Department of Insurance authority
- Chapter 541 (unfair methods)
- Chapter 542 (claims practices)
- Rate regulation and filing requirements
Key Texas Laws:
- Prompt Payment of Claims Act (Chapter 542)
- Unfair Competition and Practices (Chapter 541)
- Insurance Code Title 5 (Property & Casualty)
- Consumer protection provisions
Prohibited Practices:
- Rebating and inducements
- Misrepresentation
- Twisting and churning
- Unfair discrimination
- Unfair claims practices
5. Ethics and General Insurance (5%)
Producer Responsibilities:
- Fiduciary duties
- Premium trust accounts
- Client disclosure requirements
- Record retention (5 years)
Continuing Education:
- 24 hours every 2 years
- Includes 2 hours ethics
- TDI-approved providers only
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | Property insurance and TWIA | 12-15 |
| Week 2-3 | Liability and workers' comp | 12-15 |
| Week 3-4 | Auto insurance and TX minimums | 10-12 |
| Week 4-5 | Texas Insurance Code | 10-12 |
| Week 5 | Practice exams and review | 10-12 |
Total recommended study time: 55-65 hours (plus 40-hour pre-licensing)
🎯 Free Practice Questions Available
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Texas-Specific Exam Tips
1. Master TWIA (Texas Windstorm Insurance Association)
TWIA is heavily tested:
- Covers 14 coastal counties
- Wind and hail only (not flood)
- WPI-8 certificate required for eligibility
- Know coverage limits and deductibles
- Understand first-tier coastal requirements
2. Know Texas Auto Minimums (30/60/25)
Texas requires specific minimum coverages:
- $30,000 per person bodily injury
- $60,000 per accident bodily injury
- $25,000 property damage
- Remember: PIP is optional in Texas
3. Understand Non-Compulsory Workers' Comp
Texas is unique for workers' compensation:
- Employers can opt out (non-subscriber)
- Non-subscribers face lawsuit exposure
- Texas Mutual is major carrier
- Know the implications of each choice
4. Key Numbers to Remember
| Topic | Texas Requirement |
|---|---|
| Passing score | 70% (105/150) |
| Pre-licensing | 40 hours |
| License term | 2 years |
| CE requirement | 24 hours/2 years |
| Auto BI minimums | 30/60 |
| Auto PD minimum | $25,000 |
Common Mistakes to Avoid
- Ignoring TWIA details — Major exam topic
- Confusing TX workers' comp — Non-compulsory is unique
- Missing Texas Insurance Code — Chapter 541/542 tested
- Forgetting 30/60/25 — Different from other states
- Underestimating 150 questions — Longer than most states
- Not practicing enough — Use practice exams extensively
After Passing Your Exam
- Submit license application to TDI
- Pay license fee ($50 for 2 years)
- Complete fingerprinting if required
- Obtain appointment from insurance carrier
- Maintain CE requirements (24 hours/2 years)
- Begin your insurance career in Texas
2026 Texas Updates
For 2026, be aware of:
- TWIA coverage updates
- TDI regulation changes
- New CE requirements
- Catastrophe coverage developments
Start Your Texas P&C Career Today
The Texas Property & Casualty license opens doors to serving the second-largest insurance market in the nation. With TWIA specialization and a growing population, opportunities abound. With proper preparation, you can pass the exam on your first attempt.
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Our free study materials include:
- ✅ Complete topic coverage
- ✅ Practice questions with explanations
- ✅ TDI regulation specifics
- ✅ TWIA coverage details
- ✅ AI-powered study assistance
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