Texas P&C Insurance Exam: The Complete 2026 Study Guide

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 150 multiple-choice questions and you have 2 hours and 30 minutes to complete it. You need a score of 70% or higher to pass. The exam fee is $55, and you can take it 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: 150 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 $55 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 2 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 $29.99 (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.