Curriculum: Texas General Lines Insurance Producer Pre-Licensing (Property & Casualty)

Set the approval boundary, explain TDI's regulatory authority under TIC Chapters 31 and 4001-4004, and orient candidates to the Pearson VUE General Lines P&C state exam, the TDI resident application path, the temporary-license sponsor-training path, and the difference between course completion and licensure.

• -Explain TDI's authority under TIC Chapter 31 and Chapter 4001 and identify the current TDI/Pearson public sources that control the General Lines P&C licensing path.
• -Distinguish the General Lines P&C license (Type 4001) from the Personal Lines license (Type 4002) and from adjuster, surplus lines, and life/health authorities.
• -Describe the sequence from Pearson VUE examination through license application, fingerprint screening, and written license issuance, and distinguish that sequence from the temporary-license sponsor-training path.
• -Identify when conduct crosses the line into acting as an unlicensed agent under TIC §4001.101.

Build the core vocabulary of risk, peril, hazard, loss, indemnity, insurable interest, and pooling, and connect those concepts to how the Texas insurance marketplace is organized between admitted insurers, surplus lines, residual markets, and self-insured arrangements.

• -Differentiate pure risk, speculative risk, peril, hazard, moral hazard, and morale hazard.
• -List the six elements of an insurable risk and apply them to Texas underwriting decisions.
• -Distinguish admitted insurers, surplus lines insurers, residual markets (TWIA, FAIR Plan, TAIPA), and self-insured arrangements.
• -Identify domestic, foreign, and alien insurer classifications and explain why the distinction matters for solvency and service of process.

Teach the contract characteristics that govern insurance interpretation in Texas, the standard parts of a P&C policy (declarations, insuring agreement, definitions, conditions, exclusions, endorsements), and the agency-authority framework that determines what a Texas agent can bind.

• -Identify the four characteristics of insurance contracts (adhesion, aleatory, unilateral, conditional) and explain how Texas courts apply contra proferentem.
• -Locate the declarations page, insuring agreement, definitions, conditions, exclusions, and endorsements in a P&C policy and explain the function of each.
• -Apply insurable interest, indemnity, subrogation, salvage, waiver, estoppel, concealment, and misrepresentation doctrines to Texas fact patterns.
• -Distinguish express, implied, and apparent authority and recognize when an agent's actions bind the insurer.

Build the property insurance foundation: causes of loss (named-peril, broad, special), valuation (ACV, replacement cost, functional, agreed value), coinsurance, deductibles, additional coverages, and the structure of ISO and Texas-specific property forms.

• -Distinguish basic, broad, and special form causes-of-loss structures and identify which party bears the burden of proof under each.
• -Apply ACV, replacement cost, functional replacement cost, agreed value, and market value to Texas property loss scenarios.
• -Calculate a coinsurance penalty using the did-carry / should-have-carried formula.
• -Compare flat, percentage, and per-storm deductible structures, including TWIA hurricane deductibles.

Walk through the ISO homeowners forms and Texas dwelling fire forms in detail: who is an insured, what property is covered, what perils trigger coverage, exclusions, Section II liability and medical payments, and the differences between HO-3 and HO-5 that drive exam questions.

• -Identify Coverages A through F on the homeowners declarations page and explain what each covers.
• -Apply the definitions of 'insured' across Section I and Section II to common household fact patterns.
• -Distinguish HO-2, HO-3, HO-5, HO-4, HO-6, and HO-8 forms by perils insured, valuation method, and target population.
• -Choose between an HO-3 and HO-5 for a Texas homeowner and explain the difference in burden of proof and premium.

Build the commercial property foundation: ISO CP forms, building vs business personal property vs personal property of others, business income and extra expense, blanket vs scheduled limits, value reporting forms, and the role of inland marine and commercial inland marine floaters.

• -Identify the components of the ISO Commercial Property Coverage Part and explain the role of each.
• -Distinguish building, business personal property, and personal property of others, and apply each to a fact pattern.
• -Choose the appropriate Causes of Loss form and recognize the principal exclusions in each.
• -Calculate business income and extra expense recovery, including civil authority coverage.

Teach the Texas residual markets in depth: TWIA windstorm and hail coverage in coastal counties under TIC Chapter 2210, the Texas FAIR Plan basic property coverage under TIC Chapter 2211, TAIPA auto residual market under TIC Chapter 2151, and the certificate of compliance (WPI-8) inspection requirement.

• -Identify the 14 designated catastrophe counties under TIC Chapter 2210 and explain TWIA's role.
• -Apply TWIA coverage limits, hurricane deductibles, and the WPI-8 inspection requirement to coastal property fact patterns.
• -Distinguish TWIA, the Texas FAIR Plan, and TAIPA by line of business, eligibility, and funding mechanism.
• -Explain why TWIA and FAIR Plan policies are not protected by TPCIGA.

Teach how flood insurance differs from standard property coverage in Texas, the structure of the National Flood Insurance Program (NFIP), the Standard Flood Insurance Policy (SFIP), private flood alternatives, and the Texas-specific flood disclosure and concurrent-causation issues post-Harvey.

• -Explain why flood is excluded from standard P&C policies and how the NFIP fills the gap.
• -Identify NFIP coverage limits, the SFIP forms, the 30-day waiting period, and the SFHA designation.
• -Apply Risk Rating 2.0 concepts when discussing NFIP premiums with Texas clients.
• -Compare NFIP and private flood policies and identify when private flood may be appropriate.

Teach the Texas Personal Auto Policy (TPAP) structure, mandatory minimum financial responsibility limits, optional coverages (PIP, UM/UIM, comprehensive, collision, towing, rental reimbursement), the Texas auto verification system, and the special rules for non-owned and named non-owner coverages.

• -Apply Texas 30/60/25 minimum financial responsibility limits and explain the consequences of failing to maintain coverage.
• -Identify the six parts of the Texas Personal Auto Policy and what each covers.
• -Explain Texas UM/UIM mandatory-offer rules under TIC §1952.101 and PIP mandatory-offer under TIC §1952.151.
• -Apply the Texas no-deductible glass coverage under TIC §1952.302.

Teach the ISO Business Auto Coverage Form (BACF), symbol-based covered auto designations, trucking/motor carrier policies, garage and dealer operations, MCS-90 endorsement, and Texas commercial auto rate filings under TIC Chapter 2254.

• -Identify and apply the principal Business Auto Coverage Form symbols (1, 2, 7, 8, 9) to commercial fact patterns.
• -Distinguish the Business Auto Coverage Form from the Motor Carrier and Auto Dealers Coverage Forms.
• -Explain the function of the MCS-90 endorsement and identify when it applies.
• -Apply federal motor carrier financial responsibility limits to interstate operations and Texas intrastate limits to Texas-only operations.

Teach the ISO Commercial General Liability Coverage Form (CG 00 01) in depth: Coverages A, B, C; occurrence vs claims-made triggers; the duty to defend; principal exclusions; the additional insured ecosystem; professional liability/E&O distinctions; and umbrella/excess structures.

• -Identify Coverages A, B, and C on the CGL declarations page and explain the insuring agreement for each.
• -Distinguish occurrence-based and claims-made trigger CGLs and apply the trigger analysis to Texas fact patterns.
• -Apply the eight-corners rule to determine the Texas duty to defend.
• -Identify the principal CGL exclusions and recognize when each applies in commercial scenarios.

Teach the unique Texas workers' compensation structure: TIC Title 5 and Labor Code Title 5; the elective subscriber system; non-subscriber (opt-out) employer liability; the bar against negligence-based suits for subscribers under Labor Code §408.001; and the agent's role in helping employers choose, document, and disclose their election.

• -Explain why Texas workers' compensation is elective and identify the principal statutory consequences of each election.
• -Identify the four categories of Texas WC income benefits (TIBs, IIBs, SIBs, LIBs) and apply them to recovery scenarios.
• -Distinguish Part One (statutory WC) and Part Two (employer's liability) on the Texas WC policy.
• -Explain the non-subscriber's loss of common-law defenses under Labor Code §406.033.

Teach Texas surplus lines under TIC Chapter 981: eligibility, the diligent search requirement, the surplus lines agent license, the Surplus Lines Stamping Office of Texas, the 4.85 percent premium tax, the consumer disclosure, and the principal specialty markets including E&S property, professional liability, environmental, cyber, and energy.

• -Distinguish admitted, surplus lines (non-admitted but eligible), and unauthorized insurers.
• -Apply the diligent search requirement under TIC §981.004 to surplus lines placements.
• -Calculate the 4.85 percent Texas surplus lines premium tax and identify when the SLTX stamping fee applies.
• -Deliver the TIC §981.101 surplus lines disclosure correctly and recognize the no-guaranty-fund exposure.

Teach the prohibitions of TIC Chapter 541 (Unfair Methods of Competition and Unfair or Deceptive Acts or Practices) and Chapter 21 (General Provisions), including misrepresentation, false advertising, defamation of insurers, boycott and intimidation, false financial statements, unfair settlement practices, rebating, twisting, churning, and the private right of action under §541.151.

• -Identify the principal prohibited acts under TIC Chapter 541 and apply them to producer fact patterns.
• -Distinguish administrative action under TDI from the private right of action under TIC §541.151.
• -Apply TIC §541.060 unfair settlement practices to claim-handling scenarios.
• -Recognize rebating, twisting, churning, and false advertising violations in agent marketing materials.

Teach Texas claims-handling rules under TIC Chapter 542 (prompt payment of claims) and TIC §542A (residential property claims), the common-law duty of good faith and fair dealing in first-party claims, the agent's role in first notice of loss, and the interaction between claim denial, the duty to defend, and the appraisal process.

• -Apply TIC Chapter 542 prompt-payment deadlines (15-day acknowledgment, 15-day investigation, 15-business-day accept/reject, 5-business-day pay) to claim scenarios.
• -Calculate the 18 percent late-payment interest penalty under TIC §542.060.
• -Apply TIC Chapter 542A pre-suit notice requirements to residential property claims and recognize the impact on attorney's fee recovery.
• -Identify breaches of the common-law duty of good faith under Arnold and Stowers doctrines.

Close the course with the licensing lifecycle under TIC Chapters 4001-4004: license application, fingerprint background check, appointment by insurers, continuing education, renewal, license maintenance, reporting obligations under TIC §4001.106, and final exam preparation strategy for the Pearson VUE General Lines P&C examination.

• -Complete the Texas license application sequence including fingerprint screening under TIC §4001.103.
• -Maintain insurer appointments under TIC §4001.252 and report terminations under TIC §4005.301.
• -Track and complete 24 hours of CE biennially including the 2-hour ethics requirement under TIC §4004.053.
• -Report administrative actions, criminal convictions, and bankruptcies within 30 days under TIC §4001.106.