Texas Property and Casualty Exam – Study Guide
If you've been searching for "property exam" in the context of Texas insurance licensing, you're almost certainly looking at the Texas Property and Casualty Insurance License Exam. This is the state-required test you must pass before you can sell property and casualty insurance products in Texas. Below is a practical breakdown of the exam format, the subjects it covers, the Texas statutes you should know, and concrete tips for preparation.
Exam Format at a Glance
The exam is administered by Pearson VUE and structured as follows:
- Scored questions: 130
- Time limit: 150 minutes
- Passing score: 70
- Exam fee: $49
That works out to just under 70 seconds per question. Most candidates find the time adequate, but only if they've studied enough to recognize concepts quickly rather than reason through every answer from scratch.
What the Exam Covers
The 130 scored questions are distributed across eight content sections. Understanding the weight of each section helps you allocate study time intelligently.
| Content Section | Approximate Questions |
|---|---|
| Types of Property Policies | ~22 |
| Property Insurance Terms and Concepts | ~15 |
| Property Policy Provisions and Contract Law | ~13 |
| Types of Casualty Policies, Bonds, and Related Terms | ~23 |
| Casualty Insurance Terms and Concepts | ~15 |
| Casualty Policy Provisions | ~12 |
| Texas Statutes and Rules Common to P&C Insurance | ~18 |
| Texas Statutes and Rules Pertinent to P&C Insurance | ~12 |
Two things jump out. First, casualty policies and bonds carry the single largest question count (~23), so don't treat casualty as an afterthought. Second, the two Texas-specific statute sections together account for roughly 30 questions — nearly a quarter of the exam. You cannot pass by studying general insurance concepts alone; you need to know Texas law.
Key Texas Statutes You Should Study
The exam tests your knowledge of specific provisions in the Texas Insurance Code. Here are several high-value topics drawn directly from the statutes.
Property Inspections and Insurability
Texas law creates a framework for voluntary property inspections that directly affects whether an insurer can refuse coverage. Under the Code, an "inspection" is defined as a physical inspection of property for which residential property insurance is sought, and an "inspection certificate" is a certificate issued by an authorized inspector indicating the property meets or exceeds minimum standards adopted by the commissioner (Tex. Ins. Code §2003.101).
Any person with an insurable interest in real or tangible personal property at a fixed location who wants to purchase residential property insurance may obtain an independent inspection from an authorized inspector (Tex. Ins. Code §2003.102). Eligible inspectors include persons licensed to perform real property inspections under the Occupations Code and designated employees or agents of counties or municipalities that establish voluntary inspection programs (Tex. Ins. Code §2003.104).
Here's the critical part for exam purposes: an inspection certificate creates a presumption of insurability. An insurer that receives a valid inspection certificate cannot use the condition of the property as grounds to refuse to issue or renew residential property insurance unless the insurer reinspects the property and specifies the areas of deficiency (Tex. Ins. Code §2003.105). This is a frequently tested concept because it directly protects consumers.
The FAIR Plan and Underserved Areas
You should also understand how the Texas FAIR Plan Association works. A person with an insurable interest in property located in an underserved area who cannot obtain residential property insurance — as evidenced by two current declinations from authorized insurers — is entitled to an inspection and evaluation of the property by the inspection bureau (Tex. Ins. Code §2211.154). Expect at least one or two questions on the declination requirement and the rights of applicants in underserved areas.
Commissioner-Ordered Inspections
The commissioner has authority to require property inspections through rulemaking when determined necessary, and the applicant bears the cost of any required inspection (Tex. Ins. Code §2006.003). This is a small but testable detail — know who pays.