Pearson Property and Casualty Exam – Texas Guide
If you've been searching for information on the "Pearson property and casualty exam," you're almost certainly looking at the Texas Property and Casualty Insurance License Exam, which is administered by Pearson VUE on behalf of the Texas Department of Insurance (TDI). This is the state licensing exam you must pass before you can legally sell property and casualty insurance in Texas.
This guide breaks down the exam structure, what the test actually covers, the licensing requirements behind it, and how to study effectively.
Why Pearson VUE?
Pearson VUE is the third-party testing company that Texas (and many other states) contracts to deliver insurance licensing exams. You'll register, schedule, and sit for the exam through Pearson VUE's system — either at a physical testing center or, where available, via online proctoring. Pearson VUE handles the logistics; the Texas Department of Insurance sets the content standards and passing criteria.
Don't confuse the exam administrator with the exam creator. Pearson VUE delivers the test, but the questions are built around Texas insurance law and industry concepts defined by TDI.
Exam Format at a Glance
Here are the numbers you need to know:
- Scored questions: 130
- Time limit: 150 minutes (2 hours and 30 minutes)
- Passing score: 70%
- Exam fee: $49
That works out to roughly 69 seconds per question. Most candidates find the time adequate, but you can't afford to linger on questions you're unsure about. Flag them, move on, and circle back.
What the Exam Covers — Section by Section
The 130 scored questions are distributed across eight content areas. Understanding the weight of each section is one of the smartest things you can do before you start studying.
Property Insurance (approximately 50 questions)
- Types of Property Policies — ~22 questions. This is the single largest section. Expect questions on homeowners forms (HO-2, HO-3, HO-5, etc.), dwelling policies, commercial property forms, and inland marine coverage. You should understand how replacement cost coverage works in practice — for example, TDI explains that on a personal property claim with replacement cost coverage, the insurer first pays actual cash value (cost to replace minus depreciation) and then pays the remainder after you've actually replaced the item (TDI Home insurance guide — Personal property claims).
- Property Insurance Terms and Concepts — ~15 questions. Definitions like coinsurance, deductibles, named perils vs. open perils, and insurable interest.
- Property Policy Provisions and Contract Law — ~13 questions. Conditions, duties after a loss, subrogation, and general contract law principles (offer, acceptance, consideration, legal purpose).
Casualty Insurance (approximately 50 questions)
- Types of Casualty Policies, Bonds, and Related Terms — ~23 questions. Another heavyweight section. Commercial general liability, auto policies, workers' compensation, umbrella/excess liability, and surety bonds all show up here. Know that general casualty companies in Texas have broad corporate powers, including the ability to make and enforce contracts and acquire property to further company purposes (Tex. Ins. Code §861.152).
- Casualty Insurance Terms and Concepts — ~15 questions. Occurrence vs. claims-made, bodily injury, property damage, personal injury, and liability limits.
- Casualty Policy Provisions — ~12 questions. Exclusions, conditions, cancellation, and nonrenewal provisions.
Texas Statutes and Rules (approximately 30 questions)
- Common to Property and Casualty Insurance — ~18 questions. Licensing requirements, unfair trade practices, claims handling standards, and producer responsibilities. A key statute here: Texas law requires anyone acting as an agent writing property and casualty insurance for an authorized insurer to hold a general property and casualty license (Tex. Ins. Code §4051.051). There is also a personal lines license option for agents who only write coverage sold to individuals and families for personal or household use (Tex. Ins. Code §4051.401).
- Pertinent to Property and Casualty Insurance — ~12 questions. Texas-specific rules on homeowners insurance, auto insurance, the Texas FAIR Plan, and assessments. For instance, every property and casualty insurer authorized in Texas must pay an annual assessment of 5.7 cents per policy in force at year-end (Tex. Ins. Code §501.203).
The Texas statutes sections together account for about 30 questions — nearly a quarter of the exam. Candidates who skip state-specific study often fail on their first attempt because of this section alone.