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Which state agency has primary regulatory authority over property and casualty insurance in Texas?

Texas Department of Insurance (TDI)

Texas Real Estate Commission (TREC)

Texas Department of Licensing and Regulation (TDLR)

Texas Comptroller of Public Accounts

to track

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

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1Which state agency has primary regulatory authority over property and casualty insurance in Texas?

A.Texas Department of Insurance (TDI)

B.Texas Real Estate Commission (TREC)

C.Texas Department of Licensing and Regulation (TDLR)

D.Texas Comptroller of Public Accounts

Explanation: The Texas Department of Insurance (TDI) is the state agency responsible for regulating all insurance activity in Texas, including property and casualty insurance. TDI oversees licensing, rate regulation, market conduct, and consumer complaints. The other agencies have no authority over insurance regulation.

2How is the Texas Commissioner of Insurance selected?

A.Elected by Texas voters in a statewide election

B.Appointed by the Texas state legislature

C.Appointed by the Governor of Texas

D.Appointed by the National Association of Insurance Commissioners (NAIC)

Explanation: The Texas Commissioner of Insurance is appointed by the Governor of Texas. Unlike states such as California where the Insurance Commissioner is elected, Texas gives the Governor authority to appoint this position. The Commissioner heads the Texas Department of Insurance and serves at the pleasure of the Governor.

3Which body of law primarily governs all insurance activity in the state of Texas?

A.Texas Business and Commerce Code

B.Texas Finance Code

C.Texas Administrative Code Title 28

D.Texas Insurance Code

Explanation: The Texas Insurance Code is the primary body of law governing all insurance activity in the state. It establishes the regulatory framework for insurance companies, producers, and transactions. While the Texas Administrative Code Title 28 contains TDI rules that implement the Insurance Code, the Insurance Code itself is the governing statute.

4What is unique about Texas pre-licensing education requirements for property and casualty insurance producers?

A.Texas requires 40 hours of pre-license education

B.Texas does not mandate pre-license education; self-study is permitted

C.Texas requires 20 hours of pre-license education

D.Texas requires completion of an approved college degree program

Explanation: Texas is one of the few states that does not require mandatory pre-license education for insurance producers. Candidates may self-study to prepare for the licensing examination. While pre-license courses are available and recommended, they are not required by TDI. This distinguishes Texas from most other states that mandate specific hours of classroom or online instruction.

5Which testing vendor administers the Texas property and casualty insurance licensing examination?

A.Prometric

B.PSI Services

C.Castle Worldwide

D.Pearson VUE

Explanation: Pearson VUE is the testing vendor contracted by the Texas Department of Insurance to administer the property and casualty insurance licensing examination. The exam consists of 145 questions (110 national and 35 state-specific), and candidates must score at least 70% to pass.

6How many questions are on the Texas property and casualty licensing examination, and what is the passing score?

A.100 questions; 75% to pass

B.145 questions; 70% to pass

C.150 questions; 80% to pass

D.120 questions; 65% to pass

Explanation: The Texas property and casualty licensing examination administered by Pearson VUE consists of 145 questions: 110 national content questions and 35 Texas state-specific questions. A candidate must achieve a minimum score of 70% to pass. The examination fee typically ranges from $49 to $62.

7How many hours of continuing education (CE) must a Texas property and casualty insurance producer complete, and over what period?

A.24 hours every 2 years

B.30 hours every year

C.20 hours every 2 years

D.40 hours every 3 years

Explanation: Texas requires property and casualty insurance producers to complete 24 hours of continuing education every 2 years (each license renewal cycle). This requirement ensures producers stay current with changes in insurance law, regulations, and industry practices. The 24 hours must include specific topics mandated by TDI, including ethics.

8A Texas insurance producer who fails to renew their license before the expiration date has how long to reinstate it without retaking the exam?

A.30 days

B.60 days

C.90 days

D.1 year

Explanation: Texas provides a 90-day grace period for license reinstatement after expiration. During this period, the producer may reinstate by completing the required CE, paying the renewal fee plus any applicable late fees, without retaking the licensing examination. After the 90-day grace period, the producer must reapply and pass the licensing exam again.

9Under Texas law, which type of insurance license allows a producer to sell both property and casualty insurance?

A.Limited Lines - Personal Lines

B.Surplus Lines License

C.General Lines - Life, Accident, and Health

D.General Lines - Property and Casualty

Explanation: A General Lines - Property and Casualty license in Texas authorizes a producer to sell all lines of property and casualty insurance. This is distinct from the General Lines - Life, Accident, and Health license, which covers life and health products. Limited lines licenses cover only specific products, and a surplus lines license allows placement with non-admitted insurers.

10Which of the following statements about the Texas Department of Insurance is CORRECT?

A.TDI has no authority to examine the financial condition of insurance companies

B.TDI must obtain a court order before revoking an insurance producer's license

C.TDI's authority is limited to admitted insurers only

D.TDI can issue cease and desist orders against producers and insurers violating the Insurance Code

Explanation: TDI has broad regulatory authority, including the power to issue cease and desist orders against producers and insurers who violate the Texas Insurance Code. TDI can also examine the financial condition of insurers, revoke or suspend licenses through administrative proceedings, and regulate both admitted and non-admitted (surplus lines) insurance activities in the state.

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.