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Mock paper #4

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
#4of 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 #4

145 questions. 150 minutes.

1

An HO-5 covers the accidental damage to an ordinary household item. Its unmodified settlement terms use ACV for this item. Use replacement cost less depreciation for this exercise. Replacement cost is $5,000 and applicable depreciation is $1,500. The repair ceiling and policy limit do not reduce the result, and no deductible applies. What is the payment?

  1. A$1,500
  2. B$3,500
  3. C$5,000
  4. D$6,500
2

A supplied DP-3 clause pays the greater of damaged-part ACV or the proportional repair amount, capped by the building limit. Required insurance is $320,000; insurance carried is $200,000; covered repair cost is $40,000; damaged-part ACV is $32,000. All required conditions are satisfied and no deductible applies. What is payable?

  1. A$25,000
  2. B$40,000
  3. C$32,000
  4. D$200,000
3

After covered physical damage, a business incurs $8,000 of necessary relocation expense to continue operations. The expense otherwise meets the supplied CP0030 extra-expense terms and is not a repair or replacement cost. An adjuster limits it to $5,000 solely because that is the income loss avoided, citing the repair-cost restriction. What distinction matters?

  1. AEvery extra expense is automatically limited to the income loss avoided.
  2. BRelocation expense can only be paid as building repair cost.
  3. CIncome loss avoided must always be added to the relocation expense.
  4. DThe cited repair/replacement restriction does not automatically govern this nonrepair expense.
4

A supplied articles floater lists a ring at $8,000 and a camera at $3,000, with each item’s amount a separate maximum that cannot be transferred. A covered total loss of the ring is valued at $10,000; the camera is undamaged. No deductible or other adjustment applies. What is the maximum for the ring?

  1. A$8,000
  2. B$10,000
  3. C$11,000
  4. D$3,000
5

A boat policy states that a covered total loss is settled at the $30,000 agreed value without depreciation, subject to its deductible. After a covered total loss, the adjuster starts from the boat’s current $22,000 resale value. Which correction follows from the stated clause?

  1. AUse the boat’s original purchase price before any depreciation.
  2. BUse whichever of resale value and agreed value is lower.
  3. CUse the price of a brand-new equivalent boat regardless of the agreed value.
  4. DStart from $30,000, then apply the policy’s deductible.

Worked explanations

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

Q1 B Ch. 6: Homeowners coverage

Answer: B - $3,500

Because Under the supplied ACV method, subtract $1,500 from $5,000 to obtain $3,500; open-perils coverage does not change that valuation. iso-ho5-2000-oid: HO0005 1000, SectionI Condition C.1: personal-property ACV, subject to repair/replacement ceiling.

Why the other answers are incorrect

  • A.Depreciation is the reduction from replacement value, not the covered value itself.
  • C.This ignores the stated depreciation and assumes replacement-cost contents settlement.
  • D.Adding depreciation reverses the stated valuation method.
Q2 C Ch. 7: Dwelling coverage

Answer: C - $32,000

Because Compare the proportional $25,000 with $32,000 ACV and choose the greater. The $200,000 limit does not further reduce it. iso-dp3-2014-heritage: DP0003 0714, E.2.b: underinsured building, greater of damaged-part ACV and proportional replacement calculation, subject to limit/conditions.

Why the other answers are incorrect

  • A.The ratio gives $200,000 divided by $320,000 times $40,000, or $25,000, but the supplied clause then compares that amount with ACV.
  • B.The stated insurance-to-value condition prevents simply assuming the full repair amount.
  • D.The building limit is a ceiling, not the payment for this partial loss.
Q3 D Ch. 8: Commercial property and business interruption

Answer: D - The cited repair/replacement restriction does not automatically govern this nonrepair expense.

Because Apply the nonrepair extra-expense grant and its other conditions; the repair-specific restriction alone does not justify the proposed reduction. 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.The inspected form states that loss-reduction restriction for extra expense to repair or replace property, not as a universal rule for all nonrepair expense.
  • B.The form separately addresses eligible expenses to continue operations at a temporary or replacement location.
  • C.Avoided loss is not an additional expense to add to the relocation bill.
Q4 A Ch. 10: Property that needs specialist coverage

Answer: A - $8,000

Because The ring’s separate scheduled maximum is $8,000 under the terms given. travelers-valuables: Scheduled Personal Articles Floater; individual item identification and value. Question supplies nontransferable item limits.

Why the other answers are incorrect

  • B.The accepted loss value still exceeds the applicable item limit.
  • C.Adding the unused camera amount would violate the stated nontransferable item limits.
  • D.The camera’s limit does not become the ring’s limit.
Q5 D Ch. 10: Property that needs specialist coverage

Answer: D - Start from $30,000, then apply the policy’s deductible.

Because The stated clause fixes the total-loss valuation at $30,000 without depreciation; the deductible still applies. tdi-boat-insurance: Know your coverage: actual cash value versus agreed amount value; question supplies total-loss settlement wording.

Why the other answers are incorrect

  • A.The clause uses an agreed amount, not the historical purchase price.
  • B.The supplied total-loss clause does not impose a lower-of-market-value restriction.
  • C.Agreed-value settlement is not an unlimited promise to buy a new boat.

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.