TEXAS LAWS AND RULES PERTINENT TO INSURANCE
EXAM ACTUAL EXAM 2026 | COMPLETE QUESTIONS
AND CORRECT ANSWERS | VERIFIED ANSWERS | JUST
RELEASED
Which of the following groups may NOT be insured by a group life
insurance policy?
- Employees
- Supervisors
- Administrators
- Individuals who are related by blood ---------CORRECT ANSWER----------
-------Individuals who are related by blood
An insurance company organized under New York laws and licensed to
do business in TX is considered a(n):
- reciprocal company
- foreign company
- alien company
- export company ---------CORRECT ANSWER-----------------foreign
company
,Who is liable when an insured suffers a loss on a policy sold by an agent
through an insurer not authorized to conduct business in Texas?
- insured
- agent and insured
- agent
- commissioner of insurance ---------CORRECT ANSWER-----------------the
agent
What is the monetary penalty for willfully violating a cease-and-desist
order?
- a fine of up to $500
- a fine of up to $250
- a fine of up to $50
- a fine of up to $100 ---------CORRECT ANSWER-----------------A fine of up
to $500
As a condition for a loan, a bank requires the borrower to purchase
credit insurance from a specific company. What is the bank guilty of?
- coercion
- defamation
- rebating
, - misrepresentation ---------CORRECT ANSWER-----------------Coercion
To terminate an agent's appointment, an insurance company must:
- send termination notice to the TX department of insurance
- send termination notice to governor
- pay a termination fee
- request a hearing before the commissioner of insurance ---------
CORRECT ANSWER-----------------send termination notice to the Texas
Department of Insurance
During a sales presentation for a participating life insurance policy, an
agent MUST:
- make a prospect understand that dividends are NOT guaranteed
- make a prospect understand that dividends ARE guaranteed
- offer to the prospect a minimum return of investment
- offer to the prospect a portion of the commissions ---------CORRECT
ANSWER-----------------make a prospect understand that dividends are
NOT guaranteed
An insured may assign up to ___ of policy ownership under an
individual life insurance policy.
EXAM ACTUAL EXAM 2026 | COMPLETE QUESTIONS
AND CORRECT ANSWERS | VERIFIED ANSWERS | JUST
RELEASED
Which of the following groups may NOT be insured by a group life
insurance policy?
- Employees
- Supervisors
- Administrators
- Individuals who are related by blood ---------CORRECT ANSWER----------
-------Individuals who are related by blood
An insurance company organized under New York laws and licensed to
do business in TX is considered a(n):
- reciprocal company
- foreign company
- alien company
- export company ---------CORRECT ANSWER-----------------foreign
company
,Who is liable when an insured suffers a loss on a policy sold by an agent
through an insurer not authorized to conduct business in Texas?
- insured
- agent and insured
- agent
- commissioner of insurance ---------CORRECT ANSWER-----------------the
agent
What is the monetary penalty for willfully violating a cease-and-desist
order?
- a fine of up to $500
- a fine of up to $250
- a fine of up to $50
- a fine of up to $100 ---------CORRECT ANSWER-----------------A fine of up
to $500
As a condition for a loan, a bank requires the borrower to purchase
credit insurance from a specific company. What is the bank guilty of?
- coercion
- defamation
- rebating
, - misrepresentation ---------CORRECT ANSWER-----------------Coercion
To terminate an agent's appointment, an insurance company must:
- send termination notice to the TX department of insurance
- send termination notice to governor
- pay a termination fee
- request a hearing before the commissioner of insurance ---------
CORRECT ANSWER-----------------send termination notice to the Texas
Department of Insurance
During a sales presentation for a participating life insurance policy, an
agent MUST:
- make a prospect understand that dividends are NOT guaranteed
- make a prospect understand that dividends ARE guaranteed
- offer to the prospect a minimum return of investment
- offer to the prospect a portion of the commissions ---------CORRECT
ANSWER-----------------make a prospect understand that dividends are
NOT guaranteed
An insured may assign up to ___ of policy ownership under an
individual life insurance policy.
