Free Texas Life & Annuities Insurance Practice Exam 1
Prepare for your licensing exam with our realistic state-specific test questions, complete answers, and detailed rationales.
Exam Structure & Overview
Passing the Texas insurance exam is the ultimate step toward launching your career as a licensed professional. This practice test consists of 25 high-probability questions sampled to match the general composition of topics tested on the real state licensing examination.
Whether you are preparing for the Life & Annuities lines or a combined license, practicing with mock questions helps cement concepts, improves time management, and reduces test-day anxiety.
Key Practice Focus Areas
- State Laws & Regulations: Specific rules, licensing duties, and consumer protections.
- Policy Provisions & Options: Standard contract clauses, riders, exclusions, and riders.
- General Principles: Underwriting basics, insurance concepts, and legal requirements.
Recommended Study PathTry this practice exam fully. Review each explanation carefully when an answer is submitted. If you feel ready to unlock the full comprehensive question database, visit the main state hub for deeper exam simulations.
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Test 125 Questions
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AnnuitiesSuitability & Taxation
How is the death benefit from an annuity treated for tax purposes if the owner dies during the accumulation phase?
AnnuitiesSuitability & Taxation
A client age 35 wants to save for retirement, has a high risk tolerance, and wants the potential for high growth. Which annuity would be most suitable?
Life InsuranceGroup Life Insurance
In a contributory group life insurance plan, what is typically required for the plan to remain in effect?
General InsuranceContracts & Terminology
In Texas, an insurance policy must specify all of the following EXCEPT:
Life InsurancePremiums & Taxes
If a policyowner surrenders their life insurance policy for its cash value, what portion is taxable?
Life InsuranceSocial Security (OASDI)
Under Social Security, a fully insured deceased worker's unmarried child under age 18 is entitled to a survivor benefit equal to what percentage of the worker's PIA?
TX Insurance Law & EthicsTX Guaranty Act & Consumer Protection
A Texas consumer who has a complaint against an insurance company or agent should first contact:
Life InsurancePremiums & Taxes
The three primary factors that determine the premium for a life insurance policy are:
General InsuranceUnderwriting & Policy Issuance
When an applicant pays the first premium at the time of application, the agent typically gives them a:
Life InsuranceRiders & Provisions
If a policyowner chooses the 'Accumulate at Interest' dividend option, what is the tax implication?
General InsuranceContracts & Terminology
What legal principle prevents a party from re-asserting a right they have previously waived?
AnnuitiesTypes & Payout Options
Which of the following is NOT a characteristic of a variable annuity?
TX Insurance Law & EthicsTexas Insurance Code & Unfair Practices
The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) allows individuals harmed by unfair insurance practices to:
AnnuitiesSuitability & Taxation
An agent is recommending that a 75-year-old client with limited assets put all of her savings into a deferred variable annuity with a 15-year surrender period. This recommendation is likely:
Life InsuranceVariable Products
Who regulates the sale of variable life insurance products?
TX Insurance Law & EthicsSenior & Specialty Protections
In Texas, which of the following statements about long-term care insurance policies is correct?
TX Insurance Law & EthicsTexas Insurance Code & Unfair Practices
In Texas, an insurer must acknowledge receipt of a claim within how many business days?
Life InsurancePremiums & Taxes
When does the 7-pay test apply?
Life InsuranceTypes of Policies
A life insurance policy that remains in force for the insured's entire life and builds cash value is known as:
Life InsuranceTypes of Policies
What is the primary purpose of key person life insurance?
TX Insurance Law & EthicsSenior & Specialty Protections
In Texas, what specific protections exist for seniors purchasing annuity products?
Life InsuranceTypes of Policies
Which type of whole life policy is designed to be paid up after a specific number of years, such as 20 years or at age 65?
Life InsurancePremiums & Taxes
What is a Modified Endowment Contract (MEC)?
General InsuranceContracts & Terminology
If an applicant makes a material misrepresentation on an application, the insurer may:
Life InsuranceBeneficiaries