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Mock paper #3

Texas General Lines - Property and Casualty

A full paper drawn to the blueprint. Answers and worked explanations are at the back of this file.

Questions
145
Time
150minutes
Scaled pass
70not a raw %
Paper
#3of 5

Single-user licence. You may print this file and write on it. You may not redistribute, resell or post it. © Sitonce 2026.

Before you start

Sit this the way you will sit the real one. A mock done in pieces over three evenings measures your notes, not your recall.

Questions
145
Minutes
150
Per question
62s
Started at
 
  1. Set a timer for 150 minutes and do not stop it. Running over is the commonest way a prepared candidate fails, and the only place you can find that out safely is here.
  2. Mark one answer for each question on the answer sheet.
  3. Answer every question. 130 questions count toward your practice score; 15 additional questions simulate unscored pretest pacing. They are identified only in the answer key. A blank is a guaranteed zero and a guess is not.
  4. Flag anything you are unsure of as you go. When you mark the paper, a question you flagged and got right is worth as much of your attention as one you got wrong - you do not yet know it, you guessed it.
  5. When the timer runs out, turn to the Answers section at the back of this file. Mark the paper against the quick-reference key first, fill in the score table, and only then read the worked explanations.

What this paper covers

AreaQuestionsShare
G-IV. Casualty policies and bonds2618%
G-I. Property policies2417%
TX-I. Texas regulation and producer responsibilities2114%
G-II. Property insurance concepts1611%
G-V. Casualty insurance concepts1611%
G-III. Property provisions and contract law1410%
G-VI. Casualty policy provisions1410%
TX-II. Texas property and casualty requirements1410%
Total145100%

Paper #3

145 questions. 150 minutes.

1

A guest sues a renter for bodily injury allegedly caused by the renter’s negligence. The claim falls within the supplied HO-4 personal-liability terms. The renter argues that only the landlord can have liability coverage because the landlord owns the building. Which HO-4 coverage is relevant?

  1. ACoverage F only, because injury at the residence does not require a negligence finding.
  2. BCoverage C, for the value of the guest’s injury claim as property of another person.
  3. CCoverage D, for the renter’s lost use of the apartment during the lawsuit.
  4. DCoverage E, which can protect the renter against covered legal liability.
2

Covered damage makes a DP-2 rental house unfit to live in. The landlord lives elsewhere and loses eligible rent during repairs, but incurs no increase in personal living expenses. Which coverage addresses the stated financial loss?

  1. ACoverage A, as an additional amount for building repairs.
  2. BCoverage D fair rental value, subject to its conditions.
  3. CCoverage E additional living expense, regardless of any expense increase.
  4. DCoverage C, as damage to the tenant’s belongings.
3

During an eligible interruption period, projected sales are $100,000. Without the loss, expenses would have been $60,000 variable costs plus $25,000 fixed costs. The variable costs are avoided during closure; the fixed costs continue. Under the supplied net-income-plus-continuing-expenses definition, with no other adjustments, what is business income?

  1. A$100,000
  2. B$40,000
  3. C$25,000
  4. D$85,000
4

A supplied cyber policy pays accepted interruption loss only after the first 8 hours of downtime; that waiting period is not reimbursed later. A covered outage lasts 18 hours, with accepted loss of $400 each hour. No other limit, retention or adjustment applies. What is payable?

  1. A$7,200
  2. B$3,200
  3. C$0
  4. D$4,000
5

A manufactured-home buyer receives a quote that covers the home’s structure at its full replacement cost but includes no personal property coverage. The buyer also wants protection for furniture and clothing after a covered fire. Which change addresses the missing protection?

  1. AAdd personal property coverage with a suitable limit.
  2. BIncrease the structure limit by the value of the furniture.
  3. CReplace the structure’s replacement-cost basis with actual cash value.
  4. DIncrease personal liability coverage by the value of the clothing.

Worked explanations

The paper carries one for every question, at the back. These are the 5 above.

Q1 D Ch. 6: Homeowners coverage

Answer: D - Coverage E, which can protect the renter against covered legal liability.

Because Coverage E addresses the stated covered legal-liability claim and associated defense obligations; owning the building is not required. iso-ho4-2000-oid: HO0004 1000, SectionII Coverage E personal liability.

Why the other answers are incorrect

  • A.Medical payments can address eligible medical costs, but this is a covered negligence damages claim requiring the liability analysis.
  • B.A bodily-injury damages claim is not tangible personal property covered under C.
  • C.No displacement expense is described; defending a lawsuit is not loss of use.
Q2 B Ch. 7: Dwelling coverage

Answer: B - Coverage D fair rental value, subject to its conditions.

Because The described eligible rental income loss belongs under fair rental value, including the applicable period and expense adjustments. iso-dp2-2014-travis-exhibit: DP0002 0714, Coverage D Fair Rental Value versus Coverage E Additional Living Expense.

Why the other answers are incorrect

  • A.The lost rent is distinct from the physical cost of repairing the dwelling.
  • C.The facts do not describe the landlord’s qualifying increase in living costs.
  • D.The claim concerns income rather than damaged contents.
Q3 B Ch. 8: Commercial property and business interruption

Answer: B - $40,000

Because Expected net income is $100,000 minus $60,000 minus $25,000, or $15,000. Add $25,000 continuing expenses to obtain $40,000. iso-cp0030-2007-scotus: CP0030 0607 A.1: net income plus continuing normal expenses; A.2: nonrepair extra expense versus repair/replacement loss-reduction restriction.

Why the other answers are incorrect

  • A.Gross sales include costs that would have been incurred and are now avoided.
  • C.This counts continuing expenses but omits the expected $15,000 net income.
  • D.This is the projected expense total, including $60,000 that does not continue.
Q4 D Ch. 8: Commercial property and business interruption

Answer: D - $4,000

Because Subtract 8 waiting hours from 18 outage hours, then multiply 10 by $400 to obtain $4,000. naic-cyber-small-business: First-party business-interruption losses and review of policy terms; question supplies nonretroactive waiting period and accepted hourly loss.

Why the other answers are incorrect

  • A.This pays all 18 hours and ignores the nonretroactive waiting period.
  • B.This pays the excluded first 8 hours rather than the remaining covered hours.
  • C.The outage exceeds the waiting period, leaving 10 hours of payable loss.
Q5 A Ch. 10: Property that needs specialist coverage

Answer: A - Add personal property coverage with a suitable limit.

Because Furniture and clothing are personal property; the quote needs coverage for that interest. tdi-manufactured-home: Ask questions: evaluate house and personal property coverage separately.

Why the other answers are incorrect

  • B.A larger structure limit does not add the missing personal property coverage.
  • C.Changing how the structure is valued does not insure the household contents.
  • D.Liability coverage addresses liability to others, not the buyer’s own destroyed clothing.

The rest of this mock paper comes with the course

Texas Property and Casualty: the whole syllabus taught, the questions that test it, 5 timed mocks, and all 6 PDFs to print.