Texas P&C Insurance Exam Study Guide (State-Specific)

Study cheat sheet

This lesson is a Texas-specific P&C licensing exam guide that opens by explaining how the Texas Department of Insurance (TDI) and its appointed (not elected) Commissioner regulate the industry, including the commissioner's powers to examine, investigate, penalize, and issue cease and desist orders, plus a note that workers' compensation is handled by a division inside TDI rather than a separate agency. It then covers the Texas insurance marketplace, distinguishing admitted versus non-admitted insurers via the certificate of authority, classifying insurers as domestic, foreign, or alien, and contrasting stock versus mutual ownership, before detailing two Texas-distinctive carrier types, the Lloyd's plan (run by an attorney in fact) and the county mutual insurance company, which is unique to Texas and historically tied to personal auto and residential property lines. The lesson transitions into licensing topics, describing the general lines property and casualty license versus the narrower personal lines and limited lines licenses, and clarifying that agency licenses do not permit unlicensed individuals to sell, since officers, partners, and producers must hold individual licenses separately from the agency license. Later chapters outlined for the course include continuing education and renewal requirements, prohibited practices and producer duties, claims handling under the Texas Prompt Payment of Claims Act, surplus lines and rate/form regulation, Texas auto financial responsibility and minimum limits, PIP and uninsured motorist coverage with the offer-and-reject rule, the residual auto market and rideshare rules, cancellation and nonrenewal practices, TWIA and the FAIR Plan, Texas workers' compensation, and the guaranty association, JUA, and exam-day logistics.

Auto-generated study aid. Always verify figures against current state regulations.