1|Page
TEXAS LAWS AND RULES PERTINENT TO INSURANCE EXAM LATEST 2025/2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
An insured may assign up to ___ of policy ownership under an
individual life insurance policy.
- 25%
- 50%
- 75%
- 100% - ANSWER-100%
Why would the Insurance Commissioner examine the records of
an insurance company?
- to determine the solvency of the company
- to set insurance rates for the company
- to assist in underwriting
- to assess the company's value - ANSWER-To determine the
solvency of the company
A promotional advertising item is not considered a rebate unless it
has a value equal to or less than what amount?
,2|Page
- $50
- $25
- $100
- $10 - ANSWER-$25
Which of the following is NOT a required provision in group life
policies?
- Free look
- Incontestible
- Conversion
- Right to Loan - ANSWER-Right to Loan
Credit Life insurance is
- illegal in this state
- insurance issued on a debtor to cover outstanding loan balances
- not regulated in this state
- insurance issued to a creditor to cover outstanding loan
balances - ANSWER-insurance issued on a debtor to cover
outstanding loan balances
, 3|Page
In TX, how long must a policy be in force before an insurance
company must pay death benefits for suicide? - ANSWER-2 years
Which 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?
- pay an amount reduced by a specific percentage of the face
amount
- pay nothing
- pay an amount the premiums would have purchased at the
insured's actual age
- pay 50% of the initial death benefit - ANSWER-Pay an amount
the premiums would have purchased at the insured's actual age
Which of the following actions does the Commissioner of
Insurance NOT have the power to conduct?
- Activate insurance companies' financial reserves
- Issue a cease-and-desist order
- Issue insurance licenses
TEXAS LAWS AND RULES PERTINENT TO INSURANCE EXAM LATEST 2025/2026
ACTUAL EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
An insured may assign up to ___ of policy ownership under an
individual life insurance policy.
- 25%
- 50%
- 75%
- 100% - ANSWER-100%
Why would the Insurance Commissioner examine the records of
an insurance company?
- to determine the solvency of the company
- to set insurance rates for the company
- to assist in underwriting
- to assess the company's value - ANSWER-To determine the
solvency of the company
A promotional advertising item is not considered a rebate unless it
has a value equal to or less than what amount?
,2|Page
- $50
- $25
- $100
- $10 - ANSWER-$25
Which of the following is NOT a required provision in group life
policies?
- Free look
- Incontestible
- Conversion
- Right to Loan - ANSWER-Right to Loan
Credit Life insurance is
- illegal in this state
- insurance issued on a debtor to cover outstanding loan balances
- not regulated in this state
- insurance issued to a creditor to cover outstanding loan
balances - ANSWER-insurance issued on a debtor to cover
outstanding loan balances
, 3|Page
In TX, how long must a policy be in force before an insurance
company must pay death benefits for suicide? - ANSWER-2 years
Which 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?
- pay an amount reduced by a specific percentage of the face
amount
- pay nothing
- pay an amount the premiums would have purchased at the
insured's actual age
- pay 50% of the initial death benefit - ANSWER-Pay an amount
the premiums would have purchased at the insured's actual age
Which of the following actions does the Commissioner of
Insurance NOT have the power to conduct?
- Activate insurance companies' financial reserves
- Issue a cease-and-desist order
- Issue insurance licenses
