Free Texas P&C Exam Flashcards

The state agency that regulates Texas insurance activity. For P&C, TDI handles licensing oversight, market conduct, rate review, consumer complaints, and enforcement under the Texas Insurance Code.

The head of TDI. The Commissioner administers and enforces insurance laws, can investigate violations, issue orders, review filings, and discipline insurers or producers.

The main statutory source for Texas insurance law. TDI rules in the Texas Administrative Code implement and interpret those statutes, but the Insurance Code is the core legal framework.

For many Texas P&C lines, insurers file rates with TDI and may use them without waiting for prior approval. TDI can still review and act against rates that are excessive, inadequate, or unfairly discriminatory.

Texas rate filings must avoid these three defects: too high for the risk, too low to support solvency, or unfairly different for risks that are not meaningfully different.

The Texas producer license for the broad P&C authority. It is different from personal lines, surplus lines, adjuster, or life and health licensing.

Texas does not require pre-license education for the permanent General Lines P&C license. Study is still necessary, but a mandatory classroom or online hour requirement is not a prerequisite for the exam.

The current exam combines general P&C knowledge with Texas-specific law. The full appointment includes 145 questions total: 130 scored and 15 pretest questions.

A 70% score is required. Pretest questions are mixed into the exam and are not identified, so every question should be treated as if it counts.

Resident applicants generally submit fingerprints through the approved electronic fingerprinting process so TDI can receive criminal history reports before completing licensing review.

A candidate who passes a required Texas insurance exam must complete the license application process within 12 months, or the exam must be retaken.

A Chartered Property Casualty Underwriter designation can exempt an applicant from the Texas General Lines Property and Casualty licensing exam when proper documentation is submitted.

A temporary license lets an otherwise eligible applicant operate before passing the exam when sponsored. It is not renewable and requires company-provided training within the required timeframe.

Individual Texas insurance licenses are generally renewed every 2 years. Renewal depends on meeting CE requirements, paying fees, and keeping the license in good standing.

A Texas P&C producer must complete 24 hours of CE each 2-year renewal period, including required ethics training approved for Texas credit.

A Texas insurance licensee must keep TDI informed of address changes. Missing regulatory notices because the address is stale can create avoidable compliance problems.

Texas allows an insurer appointment to be filed after the producer's first transaction within the allowed window. The producer still must be properly licensed and act within granted authority.

Premiums collected from clients are not the producer's personal funds. They must be handled, recorded, and remitted according to law and the producer's agreement with the insurer.

Mixing client or insurer premium funds with personal funds is improper. Separate handling protects clients, insurers, and the producer's license.

Texas producers should maintain required client, policy, premium, correspondence, and transaction records so they can respond to TDI inquiries and prove compliant conduct.

Texas homeowners forms differ from standard ISO labels. HO-A is more basic, HO-B is broader, and HO-C is the broadest of the three commonly referenced Texas forms.

A homeowners policy may apply a separate deductible for named storm losses. Producers should explain when it applies and how it differs from the standard all-other-perils deductible.

Cancellation ends coverage before the policy term expires; nonrenewal means the insurer will not continue coverage into the next term. Texas rules treat notice and permitted reasons as consumer-protection issues.

Standard homeowners policies generally do not cover flood. Texas property owners in flood-prone areas usually need separate flood coverage, often through the National Flood Insurance Program or private flood insurers.

Business income coverage addresses lost income from a covered property loss that interrupts operations. It is an indirect-loss coverage, not payment for the damaged property itself.

The Texas Windstorm Insurance Association is a residual market for windstorm and hail coverage in designated coastal areas when eligible property cannot obtain that coverage in the voluntary market.

TWIA is about windstorm and hail in eligible coastal territory. It should not be described as a substitute for a complete homeowners policy or flood policy.

Eligibility depends on property location, inability to obtain comparable wind and hail coverage in the admitted market, and compliance with applicable construction or inspection requirements.

TFPA is a residual market for eligible property owners who cannot obtain basic property insurance through the standard voluntary market. It is distinct from TWIA's coastal wind and hail role.

The Texas Automobile Insurance Plan Association is the residual market mechanism for eligible drivers who cannot obtain required auto liability coverage through ordinary insurers.

Texas minimum financial responsibility limits are commonly remembered as 30/60/25: bodily injury per person, bodily injury per accident, and property damage per accident.

Texas is an at-fault state. A driver who causes an accident can be legally responsible for injury and property damage, subject to the policy terms and liability limits.

A claimant's recovery can be reduced by their share of fault. If the claimant reaches the Texas bar for responsibility, they cannot recover from the other party.

Texas auto insurers must offer PIP, but the insured may reject it in writing. PIP is first-party coverage for certain injury-related losses regardless of fault.

Uninsured and underinsured motorist coverage must be offered and can be rejected as allowed by Texas law. It protects the insured when the at-fault driver has no insurance or too little insurance.

TexasSure is the electronic verification system used to help confirm whether vehicles have required insurance. It supports enforcement of financial responsibility laws.

Texas is unusual because most private employers may choose whether to carry workers' compensation. Employers that carry it are subscribers; those that do not are non-subscribers.

A Texas employer that does not carry workers' compensation. Non-subscribers face greater lawsuit exposure because they lose several traditional defenses in employee injury suits.

Workers' compensation can limit an injured employee to statutory benefits instead of a negligence lawsuit. That protection is a major reason Texas employers choose to subscribe.

The DWC, within the Texas insurance regulatory framework, oversees workers' compensation issues such as claims, disputes, compliance, and self-insurance requirements.

Commercial general liability coverage responds to covered third-party claims for bodily injury or property damage, subject to exclusions, limits, and conditions.

Occurrence coverage keys off when the injury or damage happens. Claims-made coverage keys off when a claim is made, often with retroactive-date and reporting requirements.

These policies sit above underlying liability limits. An umbrella may also broaden coverage in limited ways, while excess coverage generally follows the underlying terms more closely.

Surplus lines insurance is used when coverage cannot be placed with admitted insurers after the required market effort. It involves non-admitted insurers and special producer responsibilities.

A false or misleading statement about policy terms, benefits, exclusions, insurer status, or a competitor. It is an unfair practice because it can distort the buyer's decision.

Offering something of value that is not stated in the insurance contract to induce a purchase. Texas treats rebating as a prohibited unfair trade practice.

Using misleading comparisons or false statements to induce a policy replacement. The issue is not replacement itself; it is replacement driven by deception.

Texas claim rules require insurers to respond promptly after receiving notice of a claim. Delays, poor communication, or denial without reasonable investigation can become unfair claims practices.

TPCIGA protects covered Texas P&C policyholders and claimants when an admitted insurer becomes insolvent. It is funded by insurer assessments and applies only within statutory limits.

A producer should not use TPCIGA protection to sell a policy or imply that coverage is guaranteed like a bank deposit. Guaranty association protection is a backstop, not a marketing feature.