Property & Casualty Insurance License Exam Flashcards
Browse all 15 cards
How many scoreable questions are on the Texas General Property & Casualty exam?
130 scoreable questions.
How long is the time limit for the P&C license exam?
150 minutes.
What is the exam fee for the P&C license exam?
$49.
What score do you need to pass the P&C exam?
70%.
Roughly how much time do you have per scoreable question if you pace evenly?
About 1.15 minutes each (150 minutes ÷ 130 questions), so a little over one minute per question.
Term: Indemnity
The principle that restores an insured to the same financial position they held before a loss — no better, no worse — preventing profit from insurance.
Term: Insurable interest
A financial stake in the insured property or person such that the policyholder would suffer a loss if the covered event occurred. Required for a valid P&C policy.
What is the difference between Actual Cash Value (ACV) and Replacement Cost?
ACV = replacement cost minus depreciation; Replacement Cost pays to repair/replace with like kind and quality with no deduction for depreciation.
Term: Deductible
The portion of a covered loss the insured pays out of pocket before the insurer pays; higher deductibles generally lower the premium.
What are the four main parts of an insurance policy (DICE)?
Declarations, Insuring agreement, Conditions, and Exclusions.
Term: Subrogation
The insurer's right, after paying a claim, to pursue a third party who caused the loss to recover the amount paid — supporting the indemnity principle.
What is the difference between peril and hazard?
A peril is the cause of loss (fire, theft, wind); a hazard is a condition that increases the chance or severity of a peril.
Term: Coinsurance clause
A property provision requiring the insured to carry coverage equal to a stated percentage (often 80%) of value; underinsuring triggers a penalty that reduces partial-loss payments.
What is the difference between occurrence and claims-made liability coverage?
Occurrence covers claims for injuries that happen during the policy period regardless of when filed; claims-made covers only claims filed while the policy (or its retro period) is active.
Term: Proximate cause
The unbroken chain of events, starting with a covered peril, that directly leads to a loss; it determines whether the loss is covered.