1|Page
Texas PE Licensing Exam (Principles and Practice of
Engineering – General_Discipline Specific) Exam
ACTUAL VERIFIED QUESTIONS AND ANSWERS
LATEST UPDATE.pdf 1
A promotional advertising item is not considered a rebate
unless it has a value equal to or less than what amount? -
Answer-$25-educational item,traditional courtesy
commonly extended consumers
Which of the following is NOT included in a life insurance
illustration? - Answer-Company's mortality table
ABC Insurance Company is actively engaging in boycott,
coercion, and intimidation that results in the unreasonable
restraint of trade. ABC is committing a prohibited act under
Texas insurance laws covering - Answer-Unfair methods of
competition
Credit life insurance is... - Answer-Insurance issued on a
debtor to cover outstanding loan balances
,2|Page
In Texas, an individual life insurance policy is REQUIRED
to have a grace period of - Answer-31 days
___of continuing education MUST be completed in the
classroom or classroom equivalent - Answer-50%
A domestic insurance company in Texas is considered a
company that? - Answer-is incorporated and formed in
Texas
A foreign insurance company conducting insurance
business in Texas... - Answer-Was formed under the laws
of another state
In Texas, which of these statements regarding SUICIDE
clause is TRUE? - Answer-An insurer may not use suicide
as a defense against payment after the second year
Which of the following is NOT a required provision in
group life insurance - Answer-Right to Loan
A temporary agents license issued by the Commisioner of
Insurance is valid up to __days. - Answer-90
,3|Page
Which of these provisions is NOT required in life insurance
policies? - Answer-Extended Term
An example of an unfair claims settlement practice is... -
Answer-Turning down a claim w/o providing the basis of
denial
An employee is covered under a company group life plan
with a $50.000 death benefit. What is the MAXIMUM amt
a spouse may be insured for under this program? -
Answer-$25,000
An insured may assign up to ___ of policy ownership
under an individual life insurance policy. - Answer-100%
During a sales presentation for a participating life
insurance policy, an agent MUST... - Answer-Make a
prospect understand that dividends are NOT guaranteed
How long can a cash surrender value payment be
deferred by the insurance company under the
Nonforfeiture Law? - Answer-6 months
, 4|Page
In Texas, how long must a policy be in force before an
insurance company must pay death benefits for suicide? -
Answer-2 years
A certificate of ______permits an insurance company to
transact business in Texas. - Answer-authority
A license may be denied, suspended, or revoked if the
licensee? - Answer-is found guilty of misrepresentation in
obtaining the license
A new general property/casualty licensee must complete
at LEAST__hours of continuing education w/n 24 months
of initial licensure. - Answer-24 (minimum)
What action will a life insurance company most likely take
if an insured dies and it is discovered that the insured's
age was misstated on the application? - Answer-Pay an
amount the premiums would have purchased at the
insured's actual age
Texas PE Licensing Exam (Principles and Practice of
Engineering – General_Discipline Specific) Exam
ACTUAL VERIFIED QUESTIONS AND ANSWERS
LATEST UPDATE.pdf 1
A promotional advertising item is not considered a rebate
unless it has a value equal to or less than what amount? -
Answer-$25-educational item,traditional courtesy
commonly extended consumers
Which of the following is NOT included in a life insurance
illustration? - Answer-Company's mortality table
ABC Insurance Company is actively engaging in boycott,
coercion, and intimidation that results in the unreasonable
restraint of trade. ABC is committing a prohibited act under
Texas insurance laws covering - Answer-Unfair methods of
competition
Credit life insurance is... - Answer-Insurance issued on a
debtor to cover outstanding loan balances
,2|Page
In Texas, an individual life insurance policy is REQUIRED
to have a grace period of - Answer-31 days
___of continuing education MUST be completed in the
classroom or classroom equivalent - Answer-50%
A domestic insurance company in Texas is considered a
company that? - Answer-is incorporated and formed in
Texas
A foreign insurance company conducting insurance
business in Texas... - Answer-Was formed under the laws
of another state
In Texas, which of these statements regarding SUICIDE
clause is TRUE? - Answer-An insurer may not use suicide
as a defense against payment after the second year
Which of the following is NOT a required provision in
group life insurance - Answer-Right to Loan
A temporary agents license issued by the Commisioner of
Insurance is valid up to __days. - Answer-90
,3|Page
Which of these provisions is NOT required in life insurance
policies? - Answer-Extended Term
An example of an unfair claims settlement practice is... -
Answer-Turning down a claim w/o providing the basis of
denial
An employee is covered under a company group life plan
with a $50.000 death benefit. What is the MAXIMUM amt
a spouse may be insured for under this program? -
Answer-$25,000
An insured may assign up to ___ of policy ownership
under an individual life insurance policy. - Answer-100%
During a sales presentation for a participating life
insurance policy, an agent MUST... - Answer-Make a
prospect understand that dividends are NOT guaranteed
How long can a cash surrender value payment be
deferred by the insurance company under the
Nonforfeiture Law? - Answer-6 months
, 4|Page
In Texas, how long must a policy be in force before an
insurance company must pay death benefits for suicide? -
Answer-2 years
A certificate of ______permits an insurance company to
transact business in Texas. - Answer-authority
A license may be denied, suspended, or revoked if the
licensee? - Answer-is found guilty of misrepresentation in
obtaining the license
A new general property/casualty licensee must complete
at LEAST__hours of continuing education w/n 24 months
of initial licensure. - Answer-24 (minimum)
What action will a life insurance company most likely take
if an insured dies and it is discovered that the insured's
age was misstated on the application? - Answer-Pay an
amount the premiums would have purchased at the
insured's actual age
