[TX P&C] 14. Auto Liability Limits and Financial Responsibility

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

• How Texas Transportation Code Chapter 601 establishes mandatory 30/60/25 auto liability minimum limits.

• The distinction between per-person bodily injury limits, total per-accident caps, and property damage liability.

• How to apply split limits step-by-step in a two-person collision scenario.

• Why the per-person limit overrides per-accident arithmetic when individual claims exceed policy caps.

• A simple decision rule to accurately calculate maximum insurer payouts on Texas exam questions.

For independent practice questions and video prep resources, visit https://open-exam-prep.com/practice/tx-property-casualty and https://www.youtube.com/@Open-exam-prep .

Sources checked: September 28, 2026

- https://tcss.legis.texas.gov/resources/TN/htm/TN.601.htm

- https://www.tdi.texas.gov/consumer/index.html