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Texas Property & Casualty Insurance Course Notes

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Section 1 Property Coverage Foundations Preview
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Summary

Texas property coverage questions usually ask what type of loss the policy is designed to handle. Dwelling coverage applies to the house, other structures coverage applies to detached property such as fences or garages, personal property coverage applies to contents, and loss of use pays additional living expenses when a covered loss makes the home unfit to live in.

Key Points

  • Texas property coverage questions usually ask what type of loss the policy is designed to handle. Dwelling coverage applies to the house, other structures coverage applies to detached property such as fences or garages, personal property coverage applies to contents, and loss of use pays additional living expenses when a covered loss makes the home unfit to live in.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 2 Fundamentals Preview
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Summary

Fundamental property insurance questions often turn on whether the loss is caused by a covered peril, subject to an exclusion, or limited by a deductible. A peril is the cause of loss, such as fire or theft; a hazard is a condition that increases the chance or severity of loss.

Key Points

  • Fundamental property insurance questions often turn on whether the loss is caused by a covered peril, subject to an exclusion, or limited by a deductible. A peril is the cause of loss, such as fire or theft; a hazard is a condition that increases the chance or severity of loss.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 3 Policy Provisions, Claims, and Liability Preview
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Summary

Policy provision questions test where coverage begins and where it stops. The insuring agreement states the insurer's promise, exclusions remove certain losses, and endorsements change the original policy. If the scenario says the loss falls under a specific exclusion, the correct result is usually no coverage unless an endorsement gives it back.

Key Points

  • Policy provision questions test where coverage begins and where it stops. The insuring agreement states the insurer's promise, exclusions remove certain losses, and endorsements change the original policy. If the scenario says the loss falls under a specific exclusion, the correct result is usually no coverage unless an endorsement gives it back.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 4 Policy & Risk Preview
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Summary

Business liability questions usually ask whether the claim involves injury or damage to a third party, damage to the insured's own property, or lost income after covered property damage. CGL coverage is for third-party bodily injury, property damage, and certain personal and advertising injury claims; it is not the same as property insurance.

Key Points

  • Business liability questions usually ask whether the claim involves injury or damage to a third party, damage to the insured's own property, or lost income after covered property damage. CGL coverage is for third-party bodily injury, property damage, and certain personal and advertising injury claims; it is not the same as property insurance.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 5 Auto and Workers Compensation Preview
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Summary

Texas auto liability questions often use split limits. The familiar 30/60/25 pattern means bodily injury per person, bodily injury per accident, and property damage per accident. If the question asks who pays for repairing the other driver's car, that is property damage liability, not collision coverage.

Key Points

  • Texas auto liability questions often use split limits. The familiar 30/60/25 pattern means bodily injury per person, bodily injury per accident, and property damage per accident. If the question asks who pays for repairing the other driver's car, that is property damage liability, not collision coverage.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 6 Claims Preview
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Summary

Claims questions around workers' compensation should start with the Texas rule: most private employers may choose whether to carry workers' compensation, but employers that do carry it receive protection from most employee injury lawsuits. Public projects and contracts may require coverage even when private employers generally have a choice.

Key Points

  • Claims questions around workers' compensation should start with the Texas rule: most private employers may choose whether to carry workers' compensation, but employers that do carry it receive protection from most employee injury lawsuits. Public projects and contracts may require coverage even when private employers generally have a choice.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 7 Certificates, Damages, and Cancellation Preview
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Summary

A certificate of insurance is proof that a policy exists, not a mini-policy. It does not create coverage, change limits, add an additional insured, or guarantee future notice unless the actual policy or endorsement gives those rights.

Key Points

  • A certificate of insurance is proof that a policy exists, not a mini-policy. It does not create coverage, change limits, add an additional insured, or guarantee future notice unless the actual policy or endorsement gives those rights.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 8 Operations Preview
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Summary

Nonrenewal and cancellation are different. Nonrenewal means the insurer will not continue the policy after the current term ends; cancellation ends coverage before the policy period expires. Texas exam questions usually ask for the required notice timing or the reason the insurer may act.

Key Points

  • Nonrenewal and cancellation are different. Nonrenewal means the insurer will not continue the policy after the current term ends; cancellation ends coverage before the policy period expires. Texas exam questions usually ask for the required notice timing or the reason the insurer may act.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 9 Texas Licensing and Department Rules Preview
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Summary

Texas property and casualty licensing questions center on who may act as a producer and what authority TDI has over insurance activity. A person or agency must hold the appropriate general lines property and casualty license before selling, soliciting, or negotiating covered products.

Key Points

  • Texas property and casualty licensing questions center on who may act as a producer and what authority TDI has over insurance activity. A person or agency must hold the appropriate general lines property and casualty license before selling, soliciting, or negotiating covered products.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 10 State Rules Preview
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Summary

State rule questions distinguish admitted insurers from surplus lines insurers. An admitted insurer is authorized in Texas and directly regulated as an admitted market; surplus lines coverage is used when the admitted market cannot place the risk and the transaction follows surplus lines rules.

Key Points

  • State rule questions distinguish admitted insurers from surplus lines insurers. An admitted insurer is authorized in Texas and directly regulated as an admitted market; surplus lines coverage is used when the admitted market cannot place the risk and the transaction follows surplus lines rules.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 11 Prohibited Acts and State-Specific Rules Preview
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Summary

Texas prohibited act questions usually describe what the producer or insurer said or did. Misrepresentation means giving false or misleading information about coverage; false advertising means using misleading public statements; defamation means making false statements that harm another insurer's reputation.

Key Points

  • Texas prohibited act questions usually describe what the producer or insurer said or did. Misrepresentation means giving false or misleading information about coverage; false advertising means using misleading public statements; defamation means making false statements that harm another insurer's reputation.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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Section 12 Compliance Preview
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Summary

Surplus lines insurance is used when a Texas risk cannot be placed with admitted insurers. The exam tests that surplus lines is regulated coverage through eligible nonadmitted insurers, not an informal workaround for difficult risks.

Key Points

  • Surplus lines insurance is used when a Texas risk cannot be placed with admitted insurers. The exam tests that surplus lines is regulated coverage through eligible nonadmitted insurers, not an informal workaround for difficult risks.

Common Mistakes

No common mistakes are available for this section yet.

Exam Tips

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