Texas Life & Health Insurance
Exam Prep: (2025/26 Update) Pearson VUE–Aligned Study Guide
with 200 Multiple-Choice Questions, Correct Answers and
Rationales ||Complete A+ Guide
This Document Contains:
Texas Life & Health Insurance Exam Prep in 4 sections:
Section 1 – Texas Insurance Laws & Regulations
Section 2 – Life Insurance Concepts & Products
Section 3 – Health Insurance Concepts & Policy Provisions
Section 4 – Health Insurance Underwriting, Premiums, and Group Coverage
Ascorers Stuvia
,Section 1 – Texas Insurance Laws & Regulations
Question 1
The Texas Department of Insurance (TDI) is primarily responsible for:
A. Enforcing federal insurance statutes
B. Regulating insurers and protecting state consumers
C. Setting nationwide premium rates
D. Administering federal reinsurance programs
Ans: B
Rationale: TDI enforces Texas state insurance laws, monitors insurer solvency, and ensures
fair conduct within the marketplace to safeguard consumers.
Question 2
A person must be at least ___ years old to obtain a Texas resident insurance license.
A. 16
B. 18
C. 19
D. 21
Ans: B
Rationale: Applicants must be 18 years of age or older, complete pre-licensing education,
and pass the state exam.
Question 3
The Commissioner of Insurance in Texas is:
A. Elected by state voters
B. Appointed by the Governor and confirmed by the Senate
,C. Selected by the TDI Board
D. Chosen by major insurers
Ans: B
Rationale: The Governor appoints the Commissioner, subject to Senate confirmation, for a
two-year renewable term.
Question 4
Which of the following is considered an unfair trade practice?
A. Charging higher rates for high-risk drivers
B. Using approved actuarial tables
C. Misrepresenting policy benefits
D. Offering discounts for nonsmokers
Ans: C
Rationale: Misrepresentation of benefits or policy provisions is an unfair or deceptive act
prohibited under the Texas Insurance Code.
Question 5
Agents must notify TDI of a change in their mailing address within:
A. 5 days
B. 15 days
C. 30 days
D. 60 days
Ans: C
Rationale: Licensees have 30 days to report changes of name, address, or contact
information to remain in compliance.
, Question 6
A domestic insurer is one that is:
A. Incorporated under Texas law
B. Headquartered outside the U.S.
C. Operating under federal charter
D. Licensed only in foreign states
Ans: A
Rationale: A domestic insurer is chartered and formed under Texas law; a foreign insurer is
from another U.S. state.
Question 7
Which of the following best describes a fiduciary responsibility of an insurance agent?
A. Advertising on behalf of the insurer
B. Maintaining accurate accounting of premiums collected
C. Negotiating insurer mergers
D. Determining policy rates
Ans: B
Rationale: Agents act as fiduciaries when handling clients’ premiums—funds must be held in
trust and promptly remitted.
Question 8
An insurer must acknowledge receipt of a claim within:
A. 5 calendar days
B. 10 business days
Exam Prep: (2025/26 Update) Pearson VUE–Aligned Study Guide
with 200 Multiple-Choice Questions, Correct Answers and
Rationales ||Complete A+ Guide
This Document Contains:
Texas Life & Health Insurance Exam Prep in 4 sections:
Section 1 – Texas Insurance Laws & Regulations
Section 2 – Life Insurance Concepts & Products
Section 3 – Health Insurance Concepts & Policy Provisions
Section 4 – Health Insurance Underwriting, Premiums, and Group Coverage
Ascorers Stuvia
,Section 1 – Texas Insurance Laws & Regulations
Question 1
The Texas Department of Insurance (TDI) is primarily responsible for:
A. Enforcing federal insurance statutes
B. Regulating insurers and protecting state consumers
C. Setting nationwide premium rates
D. Administering federal reinsurance programs
Ans: B
Rationale: TDI enforces Texas state insurance laws, monitors insurer solvency, and ensures
fair conduct within the marketplace to safeguard consumers.
Question 2
A person must be at least ___ years old to obtain a Texas resident insurance license.
A. 16
B. 18
C. 19
D. 21
Ans: B
Rationale: Applicants must be 18 years of age or older, complete pre-licensing education,
and pass the state exam.
Question 3
The Commissioner of Insurance in Texas is:
A. Elected by state voters
B. Appointed by the Governor and confirmed by the Senate
,C. Selected by the TDI Board
D. Chosen by major insurers
Ans: B
Rationale: The Governor appoints the Commissioner, subject to Senate confirmation, for a
two-year renewable term.
Question 4
Which of the following is considered an unfair trade practice?
A. Charging higher rates for high-risk drivers
B. Using approved actuarial tables
C. Misrepresenting policy benefits
D. Offering discounts for nonsmokers
Ans: C
Rationale: Misrepresentation of benefits or policy provisions is an unfair or deceptive act
prohibited under the Texas Insurance Code.
Question 5
Agents must notify TDI of a change in their mailing address within:
A. 5 days
B. 15 days
C. 30 days
D. 60 days
Ans: C
Rationale: Licensees have 30 days to report changes of name, address, or contact
information to remain in compliance.
, Question 6
A domestic insurer is one that is:
A. Incorporated under Texas law
B. Headquartered outside the U.S.
C. Operating under federal charter
D. Licensed only in foreign states
Ans: A
Rationale: A domestic insurer is chartered and formed under Texas law; a foreign insurer is
from another U.S. state.
Question 7
Which of the following best describes a fiduciary responsibility of an insurance agent?
A. Advertising on behalf of the insurer
B. Maintaining accurate accounting of premiums collected
C. Negotiating insurer mergers
D. Determining policy rates
Ans: B
Rationale: Agents act as fiduciaries when handling clients’ premiums—funds must be held in
trust and promptly remitted.
Question 8
An insurer must acknowledge receipt of a claim within:
A. 5 calendar days
B. 10 business days
