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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Texas General Lines — Property & Casualty exam (series InsTX-PC06) — 65 practice questions.

Subtopics: Guaranty association, Form approval, Commercial cancellation, Prompt payment of property claim, Rating and underwriting, Insurable interest, Liquidated demand, Cancellation refund, Proof of loss, Subrogation, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, Replacement cost, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, Comparative negligence, Strict liability, Vicarious liability, Punitive damages, Special vs general damages, Proximate cause, Absolute liability, Hold harmless, Bailee liability, Attractive nuisance, Res ipsa loquitur, Coinsurance calculation, Actual cash value calculation, Split limits application

Read the Property and Casualty Insurance Basics study guide

Sample questions & answers

1. If an admitted Texas property and casualty insurer becomes insolvent, covered claims are paid by the:

Texas Property and Casualty Insurance Guaranty Association

The TPCIGA pays covered claims of insolvent admitted P&C insurers, subject to statutory limits.

2. In Texas, most property and casualty policy forms generally must be:

Filed with and approved by TDI

Property and casualty policy forms generally must be filed with and approved by the department.

3. Texas generally restricts midterm cancellation of a commercial policy in force more than 60 days to reasons such as:

Nonpayment of premium or material misrepresentation

Midterm cancellation of commercial policies is limited to stated grounds such as nonpayment or fraud.

4. After an insurer notifies a Texas claimant that a property claim is accepted, payment generally must be made within:

5 business days

The insurer must pay an accepted claim within 5 business days after notifying the claimant of acceptance.

All General Lines — Property & Casualty topics

Practice: Property and Casualty Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.