Texas Property & Casualty Insurance License Practice Exam
130 practice questions covering national property & casualty concepts and Texas-specific regulations.
About the Texas Property & Casualty Insurance Exam
The Texas Property and Casualty insurance license exam is required by the Texas Department of Insurance (TDI) before selling homeowners, auto, commercial property, or liability insurance in Texas. The exam is administered by Pearson VUE on behalf of TDI. Texas has a unique insurance landscape — significant hail and hurricane exposure (especially along the Gulf Coast), the Texas FAIR Plan for high-risk properties, a competitive workers' compensation system without a state fund, and Texas-specific personal auto insurance requirements.
The P&C exam contains 150 questions with a 2.5-hour time limit and a 70% passing score. You must complete 40 hours of TDI-approved pre-license education before sitting for the exam. The exam covers national P&C content and Texas-specific law including the Texas Insurance Code, TDI regulations, and the unique Texas Windstorm Insurance Association (TWIA).
Texas P&C Insurance Exam Topic Breakdown
| Section | Approx. Weight | Key Topics |
|---|---|---|
| Property Insurance | ~28% | Homeowners (HO forms), dwelling, inland marine, flood exclusion, windstorm |
| Casualty/Liability Insurance | ~22% | General liability, umbrella, professional liability, workers' compensation |
| Personal Auto | ~20% | Texas minimum limits, financial responsibility, Texas MVFRL, uninsured motorist |
| Texas Insurance Code | ~20% | TDI authority, cancellation/nonrenewal rules, TWIA, Texas FAIR Plan |
| Commercial Lines | ~10% | BOP, commercial property, commercial auto, surplus lines |
Sample Texas P&C Insurance Exam Questions
1. Under Texas law, the minimum required auto liability insurance limits for a personal auto policy are:
2. The Texas Windstorm Insurance Association (TWIA) provides windstorm and hail coverage for:
3. Under the Texas Insurance Code, an insurer must give a personal auto policyholder at least how many days notice before canceling a policy that has been in force for more than 60 days?
Study Tips for the Texas P&C Insurance Exam
The Texas Windstorm Insurance Association (TWIA) is a uniquely Texas concept and is heavily tested. Know which counties are designated catastrophe areas, who qualifies for TWIA coverage (must be unable to obtain voluntary market coverage), what TWIA covers (windstorm and hail only — no fire, theft, or liability), and how the TWIA funding mechanism works. Texas's Gulf Coast exposure makes TWIA a defining feature of the state's P&C market.
Texas's 30/60/25 minimum auto liability limits and the financial responsibility law (as opposed to a mandatory insurance law) are frequently tested. Know the Texas Personal Automobile Policy forms, the workers' compensation system (Texas is the only state where private employers can opt out of workers' comp, known as a 'non-subscriber' — a uniquely Texas concept), and the cancellation/nonrenewal notice requirements under Texas Insurance Code Chapter 551.
The national exam content is covered in our national P&C practice exam. Getting both lines? See the Texas Life & Health exam, and use the insurance license study guide for a full prep plan. Also licensed in real estate? See the Texas real estate exam.
Frequently Asked Questions — Texas P&C Insurance Exam
How many questions are on the Texas P&C insurance exam?
The Texas P&C exam contains 150 questions with a 2.5-hour time limit. The passing score is 70%, meaning you need at least 105 correct answers. The exam is administered by Pearson VUE on behalf of the Texas Department of Insurance.
What are the minimum auto liability requirements in Texas?
Texas requires minimum liability limits of 30/60/25: $30,000 bodily injury per person, $60,000 per accident, and $25,000 property damage. Texas uses a financial responsibility law — drivers must demonstrate financial responsibility, and auto insurance is the most common method. Drivers without insurance may have their licenses suspended after an at-fault accident.
What is the Texas Windstorm Insurance Association (TWIA)?
TWIA is a state-created insurer of last resort providing windstorm and hail coverage for properties in Texas's designated catastrophe areas (primarily coastal counties) that cannot obtain coverage in the voluntary market. TWIA covers windstorm and hail damage only — it does not include fire, theft, or liability. Properties in first-tier coastal counties are most commonly insured through TWIA.
What is unique about workers' compensation in Texas?
Texas is the only state in the US where private employers are not required to purchase workers' compensation insurance — employers can 'opt out' and become 'non-subscribers.' Non-subscriber employers lose certain legal protections (they cannot use the 'exclusive remedy' defense) and are exposed to employee lawsuits for work injuries. Most large employers maintain workers' compensation, but the non-subscriber option is a uniquely Texas concept heavily tested on the exam.
What are Texas's cancellation rules for personal auto insurance?
After a personal auto policy has been in force for 60 days, Texas restricts mid-term cancellation to: nonpayment of premium (10 days notice), fraud or material misrepresentation (20 days notice), suspension/revocation of driver's license (20 days notice), or the vehicle is no longer registered in Texas (20 days notice). Nonrenewal requires 30 days notice. Insurers cannot cancel for claims history after the first 60 days.
What is the Texas FAIR Plan?
The Texas FAIR Plan Association provides basic property insurance (fire, windstorm, lightning) for residential properties that cannot obtain coverage in the voluntary market. It is specifically for the property structure — not a comprehensive homeowners policy. The FAIR Plan does not cover personal property or liability. It is a last-resort option for properties in high-risk areas (inner-city, high-crime neighborhoods) or with significant loss history.
What pre-license education is required for the Texas P&C exam?
Texas requires 40 hours of TDI-approved pre-license education for the Property and Casualty exam. The curriculum covers property insurance, casualty insurance, personal auto, commercial lines, and Texas insurance law. Courses can be completed online through TDI-approved providers.