Free Texas Life & Annuities Insurance Practice Exam 3
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 325 Questions
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Life InsuranceSocial Security (OASDI)
A currently insured worker under Social Security must have earned at least:
AnnuitiesTypes & Payout Options
Which annuity feature ensures that the insurer, not the owner, assumes the risk for investment losses?
General InsuranceContracts & Terminology
In an insurance contract, the insured's consideration is the:
TX Insurance Law & EthicsLicensing & Conduct
In Texas, which line of authority allows an agent to sell life insurance and annuities?
General InsuranceContracts & Terminology
The term 'fiduciary' refers to:
Life InsuranceRiders & Provisions
The 'common disaster' clause in a life insurance policy is designed to address the situation where:
Life InsuranceTypes of Policies
Which of the following is an advantage of term life insurance?
Life InsuranceTypes of Policies
What happens to the cash value of a whole life policy if the insured dies?
TX Insurance Law & EthicsLicensing & Conduct
Which of the following is required before a person can sit for the Texas insurance licensing examination?
Life InsuranceTypes of Policies
A business owner buys a life insurance policy on her own life and names the business as the beneficiary. What is the business purpose of this policy?
Life InsuranceTypes of Policies
What is the primary purpose of key person life insurance?
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:
Life InsuranceGroup Life Insurance
What document does an individual member of a group life insurance plan receive as proof of coverage?
General InsuranceContracts & Terminology
A valued policy pays a fixed, predetermined amount in the event of a total loss, regardless of the actual value of the loss. Which type of insurance is typically a valued contract?
AnnuitiesTypes & Payout Options
What is the primary difference between a Group Annuity and an Individual Annuity?
AnnuitiesTypes & Payout Options
The period during which an annuity makes payments to the annuitant is the:
Life InsuranceGroup Life Insurance
In most group life insurance plans, an employee becomes eligible for coverage after completing a:
TX Insurance Law & EthicsTexas Insurance Code & Unfair Practices
Under the Texas Insurance Code, 'controlled business' refers to:
General InsuranceContracts & Terminology
A void contract is one that:
AnnuitiesTypes & Payout Options
What is the primary risk associated with a fixed annuity?
Life InsuranceRiders & Provisions
The Long-Term Care (LTC) rider on a life insurance policy allows the policyowner to:
Life InsurancePremiums & Taxes
Cash value growth in a permanent life insurance policy is:
Life InsuranceTypes of Policies
What is a primary characteristic of a Straight Life (or Continuous Premium) whole life policy?
TX Insurance Law & EthicsSenior & Specialty Protections
A Texas insurance agent who targets seniors with high-pressure sales tactics to purchase unsuitable products is engaging in:
Life InsuranceTypes of Policies