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349+ Free TX Property & Casualty Practice Questions

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2026 Statistics

Key Facts: TX Property & Casualty Exam

145 Q

Exam Questions

TDI/Pearson VUE

110 + 35

National + State Split

TDI exam outline

70%

Passing Score

TDI

30/60/25

TX Auto Minimums

Texas Insurance Code

No req.

Pre-License Education

Self-study allowed

$49–$62

Exam Fee

Pearson VUE

Texas is the largest P&C market in the US. The exam has 145 questions (110 national + 35 state, 70% to pass) with no mandatory pre-license education. Workers comp is non-mandatory (one of few states). TWIA provides wind/hail coverage for 14 coastal counties. Texas uses modified comparative negligence (51% bar).

Sample TX Property & Casualty Practice Questions

Try these sample questions to test your TX Property & Casualty exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 349+ question experience with AI tutoring.

1The principle of indemnity in property and casualty insurance is best described as:
A.Restoring the insured to the same financial position they were in before the loss, with no gain
B.Paying the insured more than the actual loss to discourage future claims
C.Reimbursing the insured for replacement cost regardless of depreciation
D.Providing coverage only for losses caused intentionally by the insured
Explanation: Indemnity means the insured is made whole, restored to the pre-loss financial position, but not allowed to profit from a loss. Tools that support indemnity include actual cash value valuation, deductibles, coinsurance, and subrogation.
2Insurable interest in a property insurance policy must exist:
A.Only at the time the policy is purchased
B.At the time of loss
C.Only after a claim is filed
D.At no particular time as long as premiums are paid
Explanation: For property insurance, insurable interest must exist at the time of loss (unlike life insurance, where it need only exist at policy inception). Without insurable interest at the time of loss, the insured suffers no financial harm and cannot collect.
3Which legal doctrine allows an insurer that has paid a claim to recover the amount paid from a negligent third party who caused the loss?
A.Subrogation
B.Coinsurance
C.Estoppel
D.Abandonment
Explanation: Subrogation lets the insurer step into the insured's legal rights and pursue recovery from the at-fault third party after paying the insured. This prevents the insured from collecting twice and supports indemnity.
4An insured intentionally over-insures a building hoping to profit from a fire. This is most directly prevented by which insurance principle?
A.Indemnity
B.Utmost good faith
C.Adhesion
D.Subrogation
Explanation: The principle of indemnity limits recovery to the actual loss, preventing the insured from profiting. Even with a high policy limit, property is typically settled on an ACV or replacement-cost basis up to the actual loss amount, not the inflated limit.
5An insurance policy is described as a contract of adhesion. This means:
A.The contract is drafted by the insurer and offered to the insured on a take-it-or-leave-it basis
B.Both parties negotiate every term equally
C.The insured drafts the policy language
D.The contract requires both parties to contribute equally to losses
Explanation: Because the insurer writes the policy and the applicant cannot negotiate its terms, the policy is a contract of adhesion. Consequently, ambiguities are generally construed against the insurer (the drafter) and in favor of the insured.
6Which of the following is an example of the insurance principle of utmost good faith (uberrimae fidei)?
A.The applicant must honestly disclose all material facts on the application
B.The insurer must pay all claims regardless of the policy terms
C.The insured may cancel the policy at any time without notice
D.The agent guarantees that premiums will never increase
Explanation: Insurance contracts require utmost good faith from both parties. The applicant must disclose material facts truthfully (no concealment or misrepresentation), and the insurer must deal fairly. A material misrepresentation can void the policy.
7An insurance contract is considered 'aleatory.' What does this mean?
A.The dollar amounts exchanged by the parties may be unequal depending on whether a loss occurs
B.Both parties must exchange equal consideration
C.Only the insurer is bound by the contract terms
D.The contract must be in writing to be enforceable
Explanation: An aleatory contract is one in which the values exchanged are unequal and depend on an uncertain event. The insured may pay small premiums and collect a large claim, or pay premiums and never have a loss.
8A representation on an insurance application differs from a warranty in that a representation:
A.Is a statement believed to be true to the best of the applicant's knowledge
B.Is guaranteed to be absolutely and literally true
C.Is part of the printed policy form
D.Cannot affect the validity of the policy
Explanation: A representation is a statement the applicant believes true; only a material misrepresentation can void coverage. A warranty is guaranteed to be literally true and, in strict terms, even a minor breach could void the policy. Most personal-lines statements are treated as representations.
9The intentional concealment of a material fact by an applicant can allow the insurer to:
A.Void the policy
B.Increase the policy limit automatically
C.Waive the deductible
D.Extend the policy term
Explanation: Concealment is the intentional withholding of a material fact the insurer would have wanted to know. If material and intentional, it gives the insurer grounds to void (rescind) the policy.
10An insurer accepts a late premium payment without reservation, then later tries to deny a claim on the basis that the policy had lapsed. The insurer is most likely prevented from doing so by:
A.Estoppel
B.Subrogation
C.Coinsurance
D.Abandonment
Explanation: By accepting the late premium without objection, the insurer waived the lapse and is now estopped (prevented) from denying coverage on that basis. Waiver is the voluntary giving up of a known right; estoppel prevents asserting a right after the other party relied on conduct.

About the TX Property & Casualty Exam

The Texas property and casualty insurance exam covers TDI licensing requirements, Texas Insurance Code, homeowners and dwelling fire policies, commercial property, general liability, Texas auto insurance (comparative negligence), workers compensation (non-mandatory), TWIA (Texas Windstorm Insurance Association), TAIPA (Texas Automobile Insurance Plan Association), and surplus lines regulation.

Questions

145 scored questions

Time Limit

2 hours 30 minutes

Passing Score

70%

Exam Fee

$49–$62 (Texas Department of Insurance (TDI) / Pearson VUE)

TX Property & Casualty Exam Content Outline

25%

TDI Regulation & Licensing

TDI structure, Commissioner of Insurance, license types, no mandatory pre-license education, CE (24 hrs/2 years), appointment rules

25%

TX Property Insurance

Homeowners (HO-A/HO-B/HO-C Texas forms), dwelling fire, commercial property, TWIA (14 coastal counties), TX FAIR Plan, flood insurance

25%

TX Casualty & Auto Insurance

Auto 30/60/25 minimums, modified comparative negligence (51% bar), workers comp (non-mandatory), general liability, TAIPA, surplus lines

25%

TX Ethics & Practices

Texas Insurance Code, unfair practices, producer conduct, guaranty association ($300K per claim), premium financing, claims handling

How to Pass the TX Property & Casualty Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 145 questions
  • Time limit: 2 hours 30 minutes
  • Exam fee: $49–$62

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

TX Property & Casualty Study Tips from Top Performers

1Know Texas auto minimums: 30/60/25 plus modified comparative negligence (51% bar rule)
2Master TWIA coverage: 14 coastal counties, wind/hail only, Certificate of Compliance required for structures
3Remember workers comp is non-mandatory in TX — non-subscribers lose common law defenses
4Study Texas HO forms: HO-A (basic named perils), HO-B (broad), HO-C (special) — differ from ISO standard forms
5Learn TX guaranty association: $300K per claim for most lines, $500K for workers comp, funded by assessments

Frequently Asked Questions

How many questions are on the Texas property and casualty insurance exam?

The TX P&C exam has 145 total questions: 110 national-level and 35 state-specific, with 2 hours and 30 minutes total. You must score at least 70% to pass. Pearson VUE administers the exam at testing centers statewide.

Does Texas require pre-license education for P&C insurance?

No. Texas is one of the few states that does not mandate pre-license education for P&C insurance. You can self-study and register directly for the exam. However, many candidates take voluntary prep courses. After licensing, 24 hours of CE are required every 2 years.

What is TWIA and why is it important in Texas?

The Texas Windstorm Insurance Association (TWIA) is a residual market that provides wind and hail coverage for property in 14 designated coastal counties and parts of Harris County where private insurers won't write coverage. TWIA is heavily tested because it's unique to Texas and affects a large portion of the state's coastal population.

Why is workers compensation different in Texas?

Texas is one of the only states where workers compensation insurance is non-mandatory (voluntary). Employers who opt out ('non-subscribers') lose certain defenses in employee injury lawsuits. About 20% of Texas employers are non-subscribers, making this a unique and heavily tested topic.

What are Texas auto insurance minimums?

Texas requires minimum auto liability coverage of 30/60/25: $30,000 per person/$60,000 per accident bodily injury and $25,000 property damage. Texas follows modified comparative negligence with a 51% bar — if you're 51% or more at fault, you recover nothing.