Texas P&C Exam Study Guide (2026): Topics, Practice Questions, Pass Rates

The Texas Property & Casualty (P&C) Insurance License Exam is a state-required test administered by Pearson VUE that you must pass to sell property and casualty insurance in Texas. The exam follows Content Outline #124401 and covers 8 major topic areas.

The exam consists of 145 multiple-choice questions — 130 are scored and 15 are unscored pretest items mixed in invisibly. You have 2 hours and 30 minutes to complete it and need a score of 70% or higher on the scored questions to pass. Since you cannot tell which 15 are pretest, treat every question as scored and aim to be comfortably above the standard rather than calculating a minimum — the reported score is scaled, not a raw percentage. The exam is administered at any Pearson VUE testing center in Texas.

Before you can sit for the exam, you must complete a 40-hour pre-licensing course from a Texas Department of Insurance (TDI)-approved provider. LanePrep is supplementary exam prep — it helps you study and retain the material, but it does not replace the required pre-licensing hours.

The Pearson VUE content outline divides the exam into 8 major areas. Here's what each covers and how many questions to expect:

1. Types of Property Policies — Homeowners, dwelling, commercial property, inland marine. Covers policy forms, coverages, and exclusions. (~22 questions)
2. Insurance Terms & Related Concepts — Deductibles, coinsurance, actual cash value vs replacement cost, insurable interest. (~15 questions)
3. Policy Provisions & Contract Law — Declarations, conditions, endorsements, the principle of indemnity, waiver and estoppel. (~13 questions)
4. Types of Casualty Policies — Auto, general liability, workers' compensation, umbrella policies. The largest section. (~23 questions)
5. Advanced Insurance Terms — Reinsurance, surplus lines, risk retention groups, self-insurance. (~15 questions)
6. Advanced Policy Provisions — Cancellation, nonrenewal, subrogation, other insurance clauses. (~12 questions)
7. Texas Statutes — Common to P&C — Agent licensing, unfair trade practices, TDI authority, continuing education. (~18 questions)
8. Texas Statutes — P&C Specific — Texas windstorm association (TWIA), FAIR plan, coastal insurance. (~12 questions)

Most candidates need 1–3 weeks of focused study to pass. Here's what works:

• Audio learning: Listen to exam prep audio during your commute, workout, or downtime. LanePrep's 8 chapters cover all content areas in ~2.3 hours of audio.
• Practice quizzes: Test yourself after each chapter. Focus on questions you get wrong — that's where the learning happens.
• Spaced repetition: Don't cram everything in one day. Spread your study over multiple sessions so the material sticks.
• Focus on weak areas: If you already know property policies but struggle with Texas statutes, spend more time on Chapters 7 and 8.

The key advantage of audio learning is that you can study during time you'd otherwise waste — driving, walking, doing chores. That's 1–2 extra hours per day most people don't realize they have.

On exam day, you'll check in at a Pearson VUE testing center with two forms of ID (one government-issued with photo). You'll be assigned a computer workstation in a monitored testing room.

• Format: 145 multiple-choice questions, computer-based
• Time: 2 hours 30 minutes
• Passing score: 70%
• Results: Immediate — you'll know if you passed before you leave
• What to bring: Two forms of ID. No phones, notes, or study materials allowed.

If you don't pass on your first attempt, you can retake the exam after a 24-hour waiting period. There is no limit on the number of retakes, but you'll pay the $49 fee each time.

Property insurance protects physical assets — homes, buildings, personal belongings — against damage or loss from covered perils. Key policy types you need to know:

• Homeowners (HO) policies: HO-1 (basic), HO-2 (broad), HO-3 (special/most common), HO-4 (renters), HO-5 (comprehensive), HO-6 (condo), HO-8 (older homes).
• Dwelling policies: DP-1, DP-2, DP-3 — used for rental properties or homes that don't qualify for homeowners coverage.
• Commercial property: BPP (Business Personal Property), BOP (Business Owners Policy), commercial package policies.

Key distinction: Named perils policies only cover losses specifically listed. Open perils (special form) policies cover everything except what's excluded — a critical exam concept.

Casualty insurance covers liability — your legal responsibility to pay for injuries or damage you cause to others. Major policy types:

• Personal auto: Liability (BI/PD), collision, comprehensive, uninsured/underinsured motorist, PIP. Texas requires minimum 30/60/25 liability limits.
• General liability: CGL (Commercial General Liability) covers bodily injury, property damage, personal/advertising injury for businesses.
• Workers' compensation: Covers employee injuries on the job. Texas is unique — it's the only state where workers' comp is not mandatory for most employers.
• Umbrella/excess: Provides additional liability coverage above underlying policies.

The casualty section is the largest on the exam (~23 questions). Pay special attention to auto policy coverages and Texas-specific requirements.

Roughly 30 questions on the exam are Texas-specific. These are the hardest for candidates using out-of-state study materials. Key topics:

• TDI (Texas Department of Insurance): Regulates all insurance in Texas. Sets rates, handles complaints, licenses agents.
• Agent licensing: Must be 18+, complete pre-licensing education, pass the exam, submit fingerprints, and pass a background check.
• Continuing education: 24 hours every 2 years, including 3 hours of ethics.
• TWIA (Texas Windstorm Insurance Association): Provides wind and hail coverage in coastal counties where private insurers won't write policies.
• FAIR Plan: Last-resort property insurance for high-risk properties that can't get coverage in the standard market.
• Unfair trade practices: Misrepresentation, twisting, churning, rebating — all prohibited and testable.

Ready to start studying? Here's your action plan:

1. Listen to Chapter 1 for free — Get a feel for LanePrep's audio format and see if it works for your learning style.
2. Take the practice quiz — Test what you retained from the audio lesson.
3. Get full access — Unlock all 9 chapters, 735+ quiz questions, and future content updates for $79 (one-time) or $14.99/month.

LanePrep covers the full Pearson VUE Content Outline #124401. Study while you drive, work out, or wind down — no screen required.