Texas property and casualty practice exam

1. How much continuing education must a Texas general lines property and casualty agent complete?

1. 15 hours every year
2. 30 hours every 2 years, including 4 hours of ethics
3. 12 hours every 2 years, with no ethics requirement
4. 24 hours every 2 years, including 3 hours of ethics

2. At least how much of a Texas agent's continuing education must be classroom or classroom-equivalent hours?

1. At least half
2. All of it
3. At least one-quarter
4. None; all of it may be self-study

3. After passing the Texas general lines property and casualty exam, a candidate must apply for the license within:

1. 90 days
2. 1 year, or retake the exam
3. 6 months
4. 2 years

1. The minimum auto liability coverage required in Texas is:

1. $25,000 per person, $50,000 per accident, and $25,000 property damage
2. $30,000 per person, $60,000 per accident, and $15,000 property damage
3. $30,000 per person, $60,000 per accident, and $25,000 property damage
4. $20,000 per person, $40,000 per accident, and $15,000 property damage

2. A Texas auto policy must include personal injury protection (PIP) of at least how much per person unless the insured rejects it in writing?

1. $1,000
2. $5,000
3. $10,000
4. $2,500

3. Texas insurers must offer uninsured/underinsured motorist coverage. To decline it, the insured must:

1. Reject it in writing
2. Tell the agent verbally
3. Do nothing, because it is excluded unless requested
4. Get approval from the Texas Department of Insurance

1. During the first 60 days of a Texas personal auto policy, the insurer may cancel it:

1. Only for nonpayment of premium
2. For any reason, unless the cancellation violates a law
3. Only with approval from TDI
4. Never; the policy cannot be canceled in the first 60 days

2. Which is an allowed reason for a Texas insurer to cancel an auto policy that has been in effect more than 60 days?

1. The insured filed a claim for an accident that was not their fault
2. The insured turned 70
3. A driver who lives with the insured has had a driver's license suspended or revoked
4. The insured moved to another Texas county

3. How much notice must a Texas insurer give before canceling a personal auto or homeowners policy?

1. 5 days
2. 30 days
3. 60 days
4. 10 days

4. For Texas personal auto and residential property policies delivered, issued, or renewed on or after January 1, 2024, the notice of nonrenewal must be given at least:

1. 60 days before the policy ends
2. 10 days before
3. 30 days before
4. 45 days before

5. A Texas insurer may nonrenew a homeowners policy because of claims only if the insured had:

1. One claim of any kind in three years
2. Three or more nonweather-related claims in three years
3. Two weather-related claims in five years
4. Any single claim over $10,000

1. The Texas Automobile Insurance Plan Association (TAIPA) does NOT sell which coverage?

1. Liability
2. Personal injury protection
3. Collision and comprehensive
4. Uninsured/underinsured motorist

2. The Texas Windstorm Insurance Association (TWIA) provides:

1. Flood coverage statewide
2. Basic home insurance in any Texas county
3. Auto coverage for high-risk drivers
4. Wind and hail coverage for coastal residents whose home policies may not cover those perils

3. A Texas homeowner can buy basic home insurance from the Texas FAIR Plan Association when:

1. They cannot find a Texas-licensed company to insure them and at least two companies have turned them down
2. They live within 10 miles of the coast
3. They want coverage cheaper than the private market
4. Their mortgage company requires it

1. For a covered claim other than workers compensation, the Texas Property and Casualty Insurance Guaranty Association pays up to:

1. $100,000
2. $300,000 or the policy limit, whichever is less
3. $500,000
4. The full policy limit, with no cap

1. Which statement about workers compensation for most Texas private employers is true?

1. Coverage is required with one or more employees
2. Coverage is required with three or more employees
3. Coverage is optional; employers without it are called nonsubscribers
4. Coverage is required only for construction employers

2. A Texas nonsubscriber employer must report to the Division of Workers Compensation any work-related injury that results in:

1. Any medical treatment at all
2. More than seven days of lost time
3. Death only
4. More than one day of lost time

1. After a Texas insurer gets the information it needs from a claimant, it has how long to say whether it will pay the claim?

1. 15 business days, which it may extend by 45 days if it explains why
2. 5 business days, with no extension
3. 30 days, which it may extend by 90 days
4. 60 days, with no extension

2. Once a Texas insurer agrees to pay all or part of a claim, it must pay within:

1. 10 days
2. 5 business days
3. 15 business days
4. 30 days