5 Most Common Mistakes on the Texas P&C Insurance Exam

This is the #1 reason candidates fail. About 30 questions (20% of the exam) are Texas-specific — TDI authority, licensing requirements, TWIA, FAIR Plan, unfair trade practices.

Many candidates use generic study materials that cover national concepts but barely touch Texas law. That's 30 questions you're gambling on.

What to do instead: Dedicate at least 25% of your study time to Chapters 7 and 8 (Texas Statutes). These are the highest-value chapters for passing the exam.

The exam loves testing whether you know the difference between similar-sounding terms. Common traps:

• Actual Cash Value vs Replacement Cost — ACV = replacement cost minus depreciation. Replacement cost = full cost to replace, no deduction for age.
• Waiver vs Estoppel — Waiver = voluntarily giving up a known right. Estoppel = being prevented from asserting a right because of prior conduct.
• Twisting vs Churning — Twisting = replacing one insurer's policy with another's. Churning = excessive transactions using values from the same policy.
• Coinsurance vs Copay vs Deductible — Know how coinsurance penalty calculations work.

What to do instead: Make a list of easily confused terms and quiz yourself on the distinctions. LanePrep's Chapter 2 and Chapter 5 cover these in depth.

Reading or listening to material feels like studying, but it's passive learning. The exam tests whether you can apply concepts, not just recognize them.

Practice quizzes force active recall — your brain has to retrieve the information, which strengthens the memory. Research consistently shows that testing yourself is more effective than re-reading.

What to do instead: Take a practice quiz after every chapter. Pay special attention to questions you get wrong — go back and re-listen to that section. Then retake the quiz.

Your brain consolidates memories during sleep. Cramming the night before gives you a temporary boost, but it fades quickly — often before you finish the exam.

The Texas P&C exam is 2.5 hours and 150 questions. Mental fatigue is real. The candidate who studied steadily for two weeks outperforms the candidate who pulled an all-nighter every time.

What to do instead: Spread your study over 1–3 weeks. Light review the day before is fine, but don't try to learn new material. Get a good night's sleep.

Not all exam sections are created equal. Here's the approximate question distribution:

• Types of Casualty Policies: ~23 questions
• Types of Property Policies: ~22 questions
• Texas Statutes (combined): ~30 questions
• Insurance Terms (combined): ~30 questions
• Policy Provisions (combined): ~25 questions

What to do instead: Use the 80/20 rule. Property, Casualty, and Texas Statutes account for ~75 questions — half the exam. If you're short on time, prioritize those three areas.