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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TX Insurance Law & EthicsTexas Insurance Code & Unfair Practices
Under Texas law, 'churning' in the insurance industry means:
TX Insurance Law & EthicsPolicy Replacement & Disclosure
When replacing an existing life insurance policy in Texas, the agent must provide the policyholder with:
Life InsuranceTypes of Policies
What is an endowment policy?
General InsuranceInsurance Marketplace
Which of the following distribution systems uses agents who represent only one insurance company?
TX Insurance Law & EthicsSenior & Specialty Protections
Under Texas law, an agent selling long-term care insurance must complete how many hours of initial training?
Life InsuranceRiders & Provisions
A collateral assignment of a life insurance policy is used when the policyowner:
General InsuranceInsurance Marketplace
A surplus lines broker is licensed to:
Life InsuranceVariable Products
A variable life insurance policy guarantees a minimum:
Life InsuranceTypes of Policies
A family policy typically provides what kind of insurance on the children?
TX Insurance Law & EthicsTexas Insurance Code & Unfair Practices
An insurance company that engages in unfair claim settlement practices in Texas may be subject to penalties under which chapter of the Texas Insurance Code?
Life InsuranceGroup Life Insurance
Key person life insurance purchased through a group plan is intended to compensate which party in the event of the key person's death?
TX Insurance Law & EthicsSenior & Specialty Protections
An agent in Texas who uses misleading designations such as 'senior financial advisor' without proper credentials may be:
General InsuranceInsurance Marketplace
The National Association of Insurance Commissioners (NAIC) is best described as:
AnnuitiesSuitability & Taxation
If a corporation owns a non-qualified annuity, how is the growth taxed?
Life InsuranceRiders & Provisions
If an insured commits suicide within the period specified by the suicide clause, what will the insurer pay?
General InsuranceInsurance Marketplace
A stock insurance company is characterized by which of the following?
Life InsurancePremiums & Taxes
A 1035 exchange allows a policyowner to:
Life InsurancePremiums & Taxes
How are employer-paid premiums for group life insurance treated for tax purposes for the employee?
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:
AnnuitiesSuitability & Taxation
What is the main advantage of tax deferral in an annuity?
Life InsurancePremiums & Taxes
What is the tax implication of an accelerated death benefit paid to a terminally ill insured?
Life InsuranceTypes of Policies
A term life policy where the death benefit decreases over the policy's term is called:
Life InsuranceGroup Life Insurance
In Texas, when a group member's coverage terminates, the conversion privilege generally must be exercised within how many days?
AnnuitiesTypes & Payout Options
In a deferred annuity, what is the 'surrender charge'?
AnnuitiesSuitability & Taxation