Texas Property & Casualty Exam Overview

Welcome to OpenExamPrep's FREE Texas Property & Casualty Insurance exam prep guide. This comprehensive resource covers Texas-specific regulations, licensing requirements, and state insurance laws you need to know to pass your exam in 2026.

About the Texas P&C Exam

The Texas Property & Casualty insurance examination is administered by Pearson VUE on behalf of the Texas Department of Insurance (TDI). Texas is the second-largest insurance market in the United States, making this license highly valuable.

Key Advantage: No Pre-Licensing Education Required

Texas is one of the few states that does NOT require pre-licensing education to take the P&C exam. You can schedule and take the exam immediately. However, due to exam difficulty (50-70% first-time pass rate nationally), study preparation is strongly recommended.

Exam Structure

Exam Tip: The 10 pretest questions are not scored and are used to develop future exams. You won't know which questions are pretest, so answer all questions carefully.

Texas License Types

Texas offers several P&C license options:

Temporary License Option

Texas offers a unique 90-day temporary license for those who need to start working immediately:

Important: The 40-hour education is only required for temporary licenses. For the permanent license, no pre-licensing education is required—just pass the exam.

Texas Insurance Market Context

Why Texas P&C Matters

Texas presents unique challenges and opportunities for P&C insurance professionals:

1. Market Size

   • Second-largest state by population (~30 million)
   • Second-largest insurance market in the U.S.
   • Major metropolitan areas: Houston, Dallas-Fort Worth, San Antonio, Austin

2. Natural Disaster Exposure

   • Hurricanes: Gulf Coast exposure (Hurricane Beryl 2024, Harvey 2017)
   • Tornadoes: Part of "Tornado Alley"
   • Hail: Among highest hail claim states
   • Flooding: Significant flood risk (NFIP important)
   • Wildfires: Increasing West Texas risk

3. Regulatory Environment

   • TDI regulates all insurance activities
   • File-and-use rate system for most lines
   • Strong consumer protection focus
   • Texas Windstorm Insurance Association (TWIA) for coastal areas

4. Auto Insurance Requirements

   • Minimum liability: 30/60/25
   • Personal Injury Protection (PIP) offered but not required
   • Uninsured/Underinsured Motorist coverage available

Step-by-Step Licensing Process

Step 1: Study and Prepare

Although Texas doesn't require pre-licensing education, preparation is essential:

• Complete this FREE study guide
• Review national P&C concepts
• Take practice exams
• First-time pass rates are 50-70% nationally

Step 2: Register for the Exam

Register with Pearson VUE:

1. Visit pearsonvue.com/tx/insurance
2. Create an account
3. Select "General Lines - Property and Casualty" exam
4. Pay the exam fee (~$50)
5. Choose in-person or online proctored option
6. Select your exam date and time

Step 3: Pass the Exam

On exam day:

• Arrive 30 minutes early (in-person)
• Bring valid government-issued photo ID
• Complete 110 questions in 2 hours
• Receive immediate pass/fail results
• 70% required to pass (70 of 100 scored questions)

Step 4: Complete Fingerprinting

After passing, complete fingerprinting through IdentoGO:

Step 5: Submit License Application

Complete your application through TDI:

1. Log into TDI's online licensing portal
2. Complete application form
3. Upload fingerprint receipt from IdentoGO
4. Pay $50 application fee
5. Submit within 1 year of passing exam

Step 6: Receive Your License

• TDI review typically takes 2-4 weeks
• License valid for 2 years
• Begin selling P&C insurance in Texas

Exam Content Breakdown

The Texas P&C exam covers both general insurance concepts and Texas-specific laws:

Property Insurance Topics (~50%)

Casualty Insurance Topics (~50%)

Total Costs Summary

Note: Texas has one of the lowest total licensing costs because no pre-licensing education is required.

Exam Exemptions

CPCU Designation

Applicants holding the Chartered Property Casualty Underwriter (CPCU) designation are exempt from the General Lines - Property and Casualty exam.

License Maintenance

Texas-Specific Topics to Know

Texas Windstorm Insurance Association (TWIA)

TWIA provides windstorm and hail coverage for designated catastrophe areas along the Texas Gulf Coast:

• 14 coastal counties and parts of Harris County
• Market of last resort for wind/hail coverage
• Important for coastal property insurance

Texas Workers' Compensation

Texas has a unique non-compulsory workers' compensation system:

• Employers can opt out ("non-subscribers")
• ~20% of Texas employers are non-subscribers
• Non-subscribers lose certain legal protections

Texas Auto Insurance

TDI Contact Information

What This Guide Covers

This FREE study guide focuses on Texas state-specific content:

Chapter 1: Texas Insurance Regulation

• TDI structure and authority
• Texas Insurance Code
• Licensing requirements
• Producer responsibilities

Chapter 2: Texas Property Insurance

• Homeowners requirements
• TWIA windstorm coverage
• Flood insurance considerations
• Texas-specific disclosures

Chapter 3: Texas Casualty Insurance

• Auto insurance (30/60/25)
• Workers' compensation (non-compulsory)
• Liability insurance
• Commercial lines

Chapter 4: Ethics & Consumer Protection

• Unfair trade practices
• Claims handling
• Texas Guaranty Association
• Producer conduct

Study Tips for Success

Key Numbers to Memorize

Next Steps

Ready to begin? Here's your action plan:

1. Complete this FREE study guide - All 4 chapters
2. Study national P&C concepts - See our Property & Casualty exam prep
3. Take practice quizzes - Test your knowledge
4. Register with Pearson VUE - Schedule your exam
5. Pass exam - With 70%+ score
6. Complete fingerprinting - Through IdentoGO
7. Apply for license - Pay $50 fee
8. Start your career - Sell P&C insurance in Texas!

Remember: Texas doesn't require pre-licensing education, but study is essential. First-time pass rates are only 50-70%.

Let's get started with Chapter 1: Texas Insurance Regulation!