Texas Life and Health Insurance Test
QUESTIONS & ANSWERS 2026 | A+ GRADED
100% VERIFIED
• Which contract element requires the agreement not to violate Texas
law? Answer: Legal purpose
• Why is an insurance policy a unilateral contract? Answer: Only the
insurer is legally obligated to perform
• Which principle requires disclosure of all material facts? Answer:
Utmost good faith
• Which hazard is caused by carelessness? Answer: Morale hazard
• Ambiguous policy language is interpreted in favor of whom? Answer:
Policyowner
• What spreads risk among many policyholders? Answer: Risk pooling
• What is consideration in an insurance contract? Answer: Premium and
promise to pay claims
• When must insurable interest exist in life insurance? Answer: At policy
issue
• Which contract characteristic requires acceptance as written? Answer:
Adhesion
, • Intentional concealment of material facts violates what principle?
Answer: Utmost good faith
• What best describes indemnity? Answer: Restoring the insured to pre-
loss condition
• Which element makes a life policy legally enforceable? Answer:
Competent parties
• What happens under a misstatement of age provision? Answer:
Adjustment of benefits
• What increases the severity of loss? Answer: Hazards
• Which entity regulates insurance agents in Texas? Answer: Texas
Department of Insurance
• Texas insurance licenses renew every how often? Answer: 2 years
• How many CE hours are required per renewal period in Texas?
Answer: 24 hours
• Failure to notify TDI of address change may result in what? Answer:
Administrative penalties
• What establishes an agent's authority to represent an insurer? Answer:
Appointment
• Issuing a policy after solicitation before appointment does what?
Answer: Ratifies the agent's actions
QUESTIONS & ANSWERS 2026 | A+ GRADED
100% VERIFIED
• Which contract element requires the agreement not to violate Texas
law? Answer: Legal purpose
• Why is an insurance policy a unilateral contract? Answer: Only the
insurer is legally obligated to perform
• Which principle requires disclosure of all material facts? Answer:
Utmost good faith
• Which hazard is caused by carelessness? Answer: Morale hazard
• Ambiguous policy language is interpreted in favor of whom? Answer:
Policyowner
• What spreads risk among many policyholders? Answer: Risk pooling
• What is consideration in an insurance contract? Answer: Premium and
promise to pay claims
• When must insurable interest exist in life insurance? Answer: At policy
issue
• Which contract characteristic requires acceptance as written? Answer:
Adhesion
, • Intentional concealment of material facts violates what principle?
Answer: Utmost good faith
• What best describes indemnity? Answer: Restoring the insured to pre-
loss condition
• Which element makes a life policy legally enforceable? Answer:
Competent parties
• What happens under a misstatement of age provision? Answer:
Adjustment of benefits
• What increases the severity of loss? Answer: Hazards
• Which entity regulates insurance agents in Texas? Answer: Texas
Department of Insurance
• Texas insurance licenses renew every how often? Answer: 2 years
• How many CE hours are required per renewal period in Texas?
Answer: 24 hours
• Failure to notify TDI of address change may result in what? Answer:
Administrative penalties
• What establishes an agent's authority to represent an insurer? Answer:
Appointment
• Issuing a policy after solicitation before appointment does what?
Answer: Ratifies the agent's actions
