Texas Insurance Laws Exam
Questions and Answers 100%
PASS
The Commissioner of Insurance may issue a temporary agent's license for a
maximum of how many days? - CORRECT ANSWER-90
A group life insurance policy may NOT insure groups consisting exclusively of
persons who are - CORRECT ANSWER-related by marriage, blood or legal
adoption
The Commissioner of Insurance has the power and duty to take all of the
following actions EXCEPT
activate insurance companies' financial reserves
compute insurance companies' required financial reserves
issue insurance licenses
handle insurance-related consumer complaints - CORRECT ANSWER-activate
insurance companies' financial reserves
, Which of the following actions by an insurance company is considered an unfair
claims settlement practice? - CORRECT ANSWER-Denying an insured's claim
without indicating the basis of denial under the policy
Under Texas insurance law, the term "transacting business" includes - CORRECT
ANSWER-collecting premiums
An agent may legally share commissions only with - CORRECT ANSWER-
another agent who is licensed in the same line of insurance
If an insurance company is organized under the laws of New Jersey and licensed to
do business here, it is considered which of the following in Texas? - CORRECT
ANSWER-a foreign company
An agent MUST do which of the following during a sales presentation for a
participating life insurance policy? - CORRECT ANSWER-Include a statement
that dividends are NOT guaranteed
Which of the following is an example of rebating? - CORRECT ANSWER-
returning a portion of a premium as inducement to purchase insurance
A foreign insurance company is one that is incorporated - CORRECT ANSWER-
under the laws of another state
All of the following statements about health coverage for newborns are correct
EXCEPT
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers 100%
PASS
The Commissioner of Insurance may issue a temporary agent's license for a
maximum of how many days? - CORRECT ANSWER-90
A group life insurance policy may NOT insure groups consisting exclusively of
persons who are - CORRECT ANSWER-related by marriage, blood or legal
adoption
The Commissioner of Insurance has the power and duty to take all of the
following actions EXCEPT
activate insurance companies' financial reserves
compute insurance companies' required financial reserves
issue insurance licenses
handle insurance-related consumer complaints - CORRECT ANSWER-activate
insurance companies' financial reserves
, Which of the following actions by an insurance company is considered an unfair
claims settlement practice? - CORRECT ANSWER-Denying an insured's claim
without indicating the basis of denial under the policy
Under Texas insurance law, the term "transacting business" includes - CORRECT
ANSWER-collecting premiums
An agent may legally share commissions only with - CORRECT ANSWER-
another agent who is licensed in the same line of insurance
If an insurance company is organized under the laws of New Jersey and licensed to
do business here, it is considered which of the following in Texas? - CORRECT
ANSWER-a foreign company
An agent MUST do which of the following during a sales presentation for a
participating life insurance policy? - CORRECT ANSWER-Include a statement
that dividends are NOT guaranteed
Which of the following is an example of rebating? - CORRECT ANSWER-
returning a portion of a premium as inducement to purchase insurance
A foreign insurance company is one that is incorporated - CORRECT ANSWER-
under the laws of another state
All of the following statements about health coverage for newborns are correct
EXCEPT
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
