Texas Property and Casualty Insurance Study Guide

Passing the Texas Property and Casualty insurance license exam opens the door to selling homeowners, auto, commercial, and liability coverage across the state. The test is substantial — 130 scored questions in 150 minutes — but entirely manageable with a focused study plan. This guide breaks down what you need to know, section by section, and points you toward the Texas statutes and rules most likely to appear on exam day.

Exam Snapshot

You'll face eight content sections of varying weight. Knowing where the questions concentrate helps you allocate study time wisely.

Content Breakdown and Study Priorities

Types of Property Policies (~22 questions)

This is the single largest property section. Expect questions on homeowners forms (HO-2, HO-3, HO-5, HO-6, HO-8), dwelling policies, commercial property forms, and inland marine coverage. Understand what each form covers and excludes. Pay attention to the distinction between named-peril and open-peril (special form) coverage.

Texas-specific note: An insurer may not decline to write residential property insurance based solely on the age of the property, though it may decline based on physical conditions such as wiring, plumbing, or roofing (28 TAC §21.1006). This rule frequently appears in exam scenarios.

Property Insurance Terms and Concepts (~15 questions)

Master coinsurance, actual cash value vs. replacement cost, insurable interest, subrogation, and the various causes of loss. Know how deductibles interact with loss settlements and how the coinsurance penalty is calculated.

Property Policy Provisions and Contract Law (~13 questions)

Study the standard policy conditions: duties after a loss, mortgage clause, pro-rata liability, appraisal process, and the concealment/fraud provision. Contract law basics — offer, acceptance, consideration, competent parties — will also appear.

Types of Casualty Policies, Bonds, and Related Terms (~23 questions)

This is the heaviest section overall. It covers commercial general liability (CGL), personal auto policies, workers' compensation, umbrella/excess liability, professional liability, and surety bonds. Understand the difference between fidelity bonds and surety bonds, and know the three parties to a surety bond (principal, obligee, surety).

For commercial auto, note that Texas requires insurers writing commercial automobile liability insurance to provide loss control information — including loss data analysis, training materials, and operational surveys — to policyholders (28 TAC §5.301).

Casualty Insurance Terms and Concepts (~15 questions)

Focus on liability triggers (occurrence vs. claims-made), bodily injury vs. property damage, personal and advertising injury, and the concepts of negligence, vicarious liability, and strict liability.

Casualty Policy Provisions (~12 questions)

Know how the CGL policy responds to claims, the duties of the insured, the supplementary payments provision, and the "other insurance" condition. For personal auto, understand Part A (liability), Part B (medical payments), Part C (uninsured/underinsured motorist), and Part D (physical damage).

Texas Statutes and Rules Common to P&C (~18 questions)

This section tests your knowledge of regulations that apply across all property and casualty lines. Key topics include:

• Certificates of insurance: A certificate of insurance is a document executed by an insurer or agent and issued to a third party as a statement or summary of P&C coverage — it is not a binder or policy form (Tex. Ins. Code §1811.001). Filing requirements for these certificates are detailed in 28 TAC §5.9370.
• Guaranty Act: The Texas Property and Casualty Insurance Guaranty Act (Tex. Ins. Code §462.001) protects policyholders when an insurer becomes insolvent. Know the coverage limits and the claims process.
• Cancellation and nonrenewal rules: Regulations under 28 TAC §5.7001 govern how and when insurers may cancel or nonrenew personal auto, residential property, and other specified lines. Understand required notice periods and prohibited reasons for cancellation.

Texas Statutes and Rules Pertinent to P&C (~12 questions)

This section drills into line-specific Texas law. Study the definitions of "personal automobile insurance" and "insurer" under Tex. Ins. Code §2301.051 — note that the Texas Windstorm Insurance Association (TWIA), the FAIR Plan Association, and the Texas Automobile Insurance Plan Association are excluded from the definition of "insurer" for purposes of rate-filing requirements. Understand how rate filings, underwriting guidelines, and market conduct rules differ by line.

Study Strategies That Work

1. Start with the heavy sections. Types of Casualty Policies (23 questions) and Types of Property Policies (22 questions) together account for roughly one-third of the exam. Nail these first.
2. Learn the Texas-specific rules last but thoroughly. The two Texas statute sections total 30 questions — nearly a quarter of the exam. Many candidates underestimate this material.
3. Use practice exams under timed conditions. At 130 questions in 150 minutes, you have about 69 seconds per question. Build that pacing into your study routine.
4. Focus on "why" not just "what." The exam tests application. Knowing that coinsurance exists isn't enough — you need to calculate the penalty in a scenario.

Frequently Asked Questions

How many questions do I need to get right to pass?

You need a score of 70%, which means answering at least 91 of the 130 scored questions correctly. The exam may include additional unscored pilot questions, but those don't count against you.

What Texas laws show up most on the exam?

The Guaranty Act (Tex. Ins. Code §462.001), certificate of insurance rules (Tex. Ins. Code §1811.001), cancellation and nonrenewal regulations (28 TAC §5.7001), and unfair practices statutes are among the most frequently tested. The two Texas-specific sections together carry 30 questions — don't skip them.

How long should I study for the Texas P&C exam?

Most candidates need 40–70 hours of focused preparation spread over two to four weeks. If you have no insurance background, lean toward the higher end. If you already hold a license in another state, you may need less time on general concepts but should still dedicate significant hours to Texas-specific statutes.

Next Steps

Ready to test your knowledge? Take our free Texas Property and Casualty practice test to identify your weak areas before exam day. For a deeper dive into registration steps, scheduling tips, and what to bring to the testing center, check out our complete Texas Property and Casualty exam guide.