Property Policy Types
22%of exam
General Concepts
15%of exam
Contract Law
13%of exam
Casualty Policy Types
23%of exam
Casualty Concepts
15%of exam
Policy Provisions
12%of exam
DeclarationsExclusionsProof LossOther InsuranceSettlement
TX Common Rules
60%of exam
TDILicensingCEMarketingProducer Duties
TX Specific Rules
40%of exam
Quick Facts
- Exam
- InsTX-PC06
- License
- General Lines P&C
- Time
- 150 minutes
- Total
- 145 questions
- Scored
- 130 questions
- Pretest
- 15 questions
- Split
- 100 general + 30 TX
- Pass
- 70 scaled
- Fee
- $49
- Provider
- Pearson VUE / TDI
Named vs Open
Named
- Only listed
- Insured proves peril
Open
- All except exclusions
- Insurer proves exclusion
Listed vs excluded
Property Picker
- Owner occupied home→HO policy(Personal lines)
- Rental dwelling→DP policy(Dwelling fire)
- Tenant contents→HO-4(Renters)
- Condo unit→HO-6(Unit owners)
- Older home→HO-8(Modified form)
- Small business→BOP(Package)
Property Forms
- HO-2
- Broad named perils
- HO-3
- Open dwelling
- HO-4
- Renters contents
- HO-5
- Open property
- HO-6
- Condo unit
- HO-8
- Modified older home
- DP-1
- Basic named perils
- DP-3
- Open dwelling
HO-3 vs HO-5
HO-3
- Open dwelling
- Named contents
HO-5
- Open dwelling
- Open contents
Contents difference
Commercial Property
- CPP
- Package platform
- BOP
- Small business package
- Building
- Owned structures
- BPP
- Business contents
- Basic causes
- Named perils
- Special causes
- Open perils
- Business income
- Lost earnings
- Extra expense
- Continue operations
Marine + Special
- Inland marine
- Moveable property
- Personal floater
- Scheduled valuables
- Commercial floater
- Business property transit
- Builders risk
- Construction property
- NFIP
- Federal flood
- Earthquake
- Earth movement
- Watercraft
- Boat coverage
- Farm owners
- Farm package
Hazards
Physical condition, moral lies, morale careless.
Physical: conditionMoral: dishonestMorale: careless
Property vs Casualty
Property
- First-party loss
- Physical things
- Direct damage
Casualty
- Third-party claims
- Legal liability
- Injury/damage owed
Own stuff vs liability
Loss Picker
- Direct physical damage→Property coverage(First party)
- Use lost after loss→ALE(Homeowners)
- Business shuts down→Business income(Time element)
- Need reopen funds→Extra expense(Operations)
- Car hits object→Collision(Impact)
- Car stolen→Comprehensive(Other loss)
Risk Concepts
- Risk
- Chance of loss
- Pure risk
- Loss/no loss
- Speculative risk
- Gain or loss
- Peril
- Cause of loss
- Hazard
- Increases loss chance
- Physical hazard
- Tangible condition
- Moral hazard
- Dishonest behavior
- Morale hazard
- Careless attitude
ACV vs RC
ACV
- Depreciation deducted
- Older value
RC
- New cost
- No depreciation
Old vs new
Valuation
- ACV
- RC minus depreciation
- Replacement cost
- New-for-old cost
- Market value
- Sale price
- Agreed value
- Value set upfront
- Stated value
- Listed limit
- Salvage value
- Post-loss value
- Coinsurance
- Insurance-to-value clause
- Deductible
- Insured pays first
Policy DICE
DICE: Declarations, Insuring, Conditions, Exclusions.
D: who/limitsI: promiseC: dutiesE: no coverage
Policy Parts
- Declarations
- Who/what/limits
- Insuring agreement
- Coverage promise
- Conditions
- Policy duties
- Exclusions
- Not covered
- Definitions
- Term meanings
- Endorsement
- Policy change
- Binder
- Temporary coverage
- Application
- Underwriting source
CGL ABC
A BI/PD, B ads, C med.
A: injury/damageB: personal adsC: med pay
Collision vs Comp
Collision
- Impact
- Upset
- Vehicle crash
Comp
- Theft
- Fire/weather
- Animal impact
Crash vs other
Liability Picker
- Business premises BI→CGL A(BI/PD)
- Ad libel claim→CGL B(Personal ads)
- Small no-fault injury→Med Pay(Coverage C)
- Professional error→E&O(Expert service)
- Director sued→D&O(Management)
- Limits exhausted→Umbrella(Excess)
CGL
- Coverage A
- BI/PD liability
- Coverage B
- Personal advertising
- Coverage C
- Medical payments
- Premises ops
- Location/work liability
- Products ops
- Goods liability
- Completed ops
- Finished work liability
- Occurrence limit
- Per event
- Aggregate
- Policy total
Surety vs Fidelity
Surety
- Three parties
- Performance guarantee
Fidelity
- Employee dishonesty
- Crime coverage
Guarantee vs dishonesty
Auto
- Liability
- BI/PD owed
- Med Pay
- No-fault medical
- UM
- Uninsured driver
- UIM
- Underinsured driver
- Collision
- Impact/upset
- Comprehensive
- Other-than-collision
- Owned auto
- Listed vehicle
- Hired auto
- Borrowed/rented business
Commercial Casualty
- Workers comp
- Statutory work injuries
- Employers liability
- Employer lawsuits
- Crime
- Dishonesty losses
- Fidelity bond
- Employee dishonesty
- Surety bond
- Performance guarantee
- E&O
- Professional mistakes
- D&O
- Director liability
- Umbrella
- Extra liability
Occurrence vs Claims-made
Occurrence
- Event date
- Late claim okay
Claims-made
- Claim date
- Retro date matters
Event vs claim
Casualty Terms
- Tort
- Civil wrong
- Negligence
- Breach of duty
- Absolute liability
- No fault needed
- Strict liability
- Activity-based fault
- Vicarious liability
- Others' acts
- Occurrence
- Event trigger
- Claims-made
- Claim trigger
- Retro date
- Prior acts boundary
Damages
- Compensatory
- Repay actual loss
- Special
- Measurable expenses
- General
- Intangible harm
- Punitive
- Punish wrongdoer
- Deposit premium
- Estimated premium
- Audit
- Final exposure review
- Certificate
- Evidence only
- Indemnity
- Restore position
Claim Provisions
- Notice
- Report claim
- Proof loss
- Sworn details
- Appraisal
- Amount dispute
- Subrogation
- Insurer recovers
- Other insurance
- Coverage coordination
- Mortgagee
- Lender rights
- Supplementary
- Extra payments
- Consent settle
- Approval needed
Exam Split
General 100, Texas 30, pretest 15.
100 general30 Texas15 pretest70 pass
TX Compliance Picker
- Exam passed→Apply(12 months)
- Insurer authorizes agent→Appointment(Required)
- Renew license→CE(24 hours)
- Move address→Notify TDI(Update)
- Client funds held→Fiduciary(No mixing)
- Claim received→Prompt action(Deadlines)
Exam Map
- PC06
- General Lines P&C
- General
- 100 scored
- Texas
- 30 scored
- General pretest
- 10 items
- Texas pretest
- 5 items
- Total
- 145 items
- Pass
- 70 scaled
- Apply
- Within 12 months
TX Licensing
- TDI
- Insurance regulator
- Commissioner
- Governor appointed
- Minimum age
- 18 years
- Application
- Within 12 months
- Fingerprinting
- Background check
- Appointment
- Insurer authorization
- CE
- 24 hours
- Ethics CE
- 2 hours
TX Entity Types
- Domestic
- Texas insurer
- Foreign
- Other-state insurer
- Alien
- Non-US insurer
- Admitted
- Authorized insurer
- Nonadmitted
- Not authorized
- Stock
- Shareholder owned
- Mutual
- Policyholder owned
- Texas Lloyds
- Underwriter association
TX Marketing
- Misrepresentation
- False policy facts
- False advertising
- Misleading promotion
- Defamation
- False insurer attack
- Rebating
- Illegal inducement
- Discrimination
- Unfair class treatment
- Fraud
- Intentional deception
- Boycott
- Coercive restraint
- Controlled business
- Self-interest selling
Auto Minimums
30 person, 60 accident, 25 property.
30 BI person60 BI accident25 PD accident
TWIA vs FAIR
TWIA
- Coastal areas
- Wind/hail only
FAIR
- Home last resort
- Limited property
Wind vs home
TX Market Picker
- Coastal wind denied→TWIA(Wind/hail)
- Home coverage denied→FAIR Plan(Last resort)
- Auto liability denied→TAIPA(Assigned risk)
- Admitted market unavailable→Surplus lines(Nonadmitted)
- Insurer insolvent→TPCIGA(Covered claims)
- Work injury benefits→Workers comp(Subscriber)
TX Property Rules
- TWIA
- Coastal wind/hail
- FAIR Plan
- Home last resort
- Surplus lines
- Eligible nonadmitted
- Rates/forms
- Filed with TDI
- Liquidated demand
- Fire claim rule
- Cancellation
- Statutory notice
- Nonrenewal
- Renewal refusal
- Windstorm code
- TWIA eligibility
TX Last Resorts
TWIA wind, FAIR home, TAIPA auto.
TWIA: wind/hailFAIR: homeTAIPA: auto
TAIPA vs UM
TAIPA
- Cannot get liability
- Assigned risk
UM
- Other driver uninsured
- Optional protection
Buy coverage vs claim
TX Auto Rules
- 30/60/25
- Minimum liability
- 30
- BI per person
- 60
- BI per accident
- 25
- PD per accident
- PIP
- Offer required
- UM/UIM
- Offer required
- TAIPA
- Auto last resort
- TNC
- Rideshare coverage
Subscriber vs Nonsubscriber
Subscriber
- Carries WC
- Exclusive remedy
Nonsubscriber
- No WC
- Loses defenses
Coverage vs exposure
TX Workers Comp
- Private employers
- May opt out
- Subscriber
- Carries coverage
- Nonsubscriber
- No WC coverage
- DWC
- Regulates WC
- Medical
- Work injury care
- Income
- Wage benefits
- Death
- Survivor benefits
- Exclusive remedy
- Subscriber protection
TX Guaranty
- TPCIGA
- Insolvency safety net
- Most claims
- $300K cap
- Unearned premium
- $25K cap
- Workers comp
- Statutory benefits
- Other insurance
- Exhaust first
- Punitive damages
- Not covered
- Surplus lines
- Not covered
- Advertising
- No sales pitch
Common Traps
Question counts
145 total ≠ 130 scored
General vs Texas
General is 100 ≠ Texas is 30
Pretest vs scored
Pretest unscored ≠ Scored affects pass
Peril vs hazard
Peril causes loss ≠ Hazard increases chance
Moral vs morale
Moral is dishonest ≠ Morale is careless
Mortgagee rights
Lender protected ≠ Insured may breach
Certificate of insurance
Evidence only ≠ No coverage change
PIP vs Med Pay
PIP broader ≠ Med Pay medical
TWIA vs flood
TWIA wind/hail ≠ NFIP flood
Guaranty advertising
Limits protect ≠ Never a pitch
Last Minute
- 1.Exam: 145 total
- 2.Scored: 130 questions
- 3.General: 100 scored
- 4.Texas: 30 scored
- 5.Pass: 70 scaled
- 6.Apply within 12 months
- 7.DICE policy parts
- 8.Peril causes loss
- 9.Hazard increases chance
- 10.ACV subtracts depreciation
- 11.HO-3: open dwelling
- 12.CGL A/B/C
- 13.Auto minimum: 30/60/25
- 14.TWIA covers wind/hail
- 15.FAIR Plan: home last-resort
- 16.TAIPA: auto last-resort
- 17.Private WC can opt-out
- 18.TPCIGA: never a pitch
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