Free Texas Life & Annuities Insurance Practice Exam 2
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 225 Questions
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Life InsuranceGroup Life Insurance
In Texas, when a group member's coverage terminates, the conversion privilege generally must be exercised within how many days?
TX Insurance Law & EthicsTX Guaranty Act & Consumer Protection
The Texas Life and Health Insurance Guaranty Association covers all of the following EXCEPT:
Life InsurancePremiums & Taxes
A level premium policy means that the premium:
AnnuitiesSuitability & Taxation
The 10% early withdrawal penalty on annuity distributions taken before age 59 1/2 does NOT apply in which of the following situations?
TX Insurance Law & EthicsTX Guaranty Act & Consumer Protection
The maximum health insurance benefit coverage provided by the TLHIGA per individual is:
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:
General InsuranceContracts & Terminology
Which section of an insurance policy lists the perils, property, or persons not covered by the contract?
AnnuitiesTypes & Payout Options
What is a 'rider' in an annuity contract?
Life InsuranceVariable Products
To sell Variable Universal Life insurance, an agent must hold which of the following licenses?
Life InsuranceBeneficiaries
Can a minor be named as a beneficiary of a life insurance policy?
Life InsurancePremiums & Taxes
If a policyowner surrenders their life insurance policy for its cash value, what portion is taxable?
General InsuranceContracts & Terminology
For a contract to be valid, all parties must be of legal age, mentally capable, and not under the influence of drugs or alcohol. This is the requirement of:
Life InsurancePremiums & Taxes
An Irrevocable Life Insurance Trust (ILIT) is used primarily to:
Life InsuranceBeneficiaries
What happens if a revocable beneficiary is found to have murdered the insured?
General InsuranceUnderwriting & Policy Issuance
When an insurer approves an application but issues the policy with different terms than applied for (such as a higher premium or an exclusion rider), this is called a:
AnnuitiesSuitability & Taxation
The NAIC Suitability in Annuity Transactions Model Regulation requires a producer to:
TX Insurance Law & EthicsLicensing & Conduct
How many hours of continuing education (CE) must a Texas insurance agent complete during each two-year license period?
General InsuranceBasic Principles
Which of the following is NOT a risk classification used by underwriters?
AnnuitiesTypes & Payout Options
What is the main purpose of the insurer's general account?
Life InsuranceGroup Life Insurance
An employee who does not enroll in a group life insurance plan during the initial eligibility period and later wishes to join is considered a:
Life InsuranceSocial Security (OASDI)
A surviving spouse caring for a deceased worker's child under age 16 is eligible for a mother's or father's benefit equal to what percentage of the worker's PIA, assuming the worker was fully or currently insured?
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
Which of the following describes the 'cost basis' of a life insurance policy?
TX Insurance Law & EthicsPolicy Replacement & Disclosure
Under Texas law, which of the following must be disclosed to an applicant during a life insurance transaction?
TX Insurance Law & EthicsSenior & Specialty Protections