TEXAS LTC TEST COMPREHENSIVE SCRIPT
2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Underwriting. Answer: process of classifying a
risk for the purpose of
issuing insurance
coverage
◉ Insurable interest. Answer: In life & health
insurance, insurable
interest must exist at the
time of application.
◉ R i d e r. Answer: A rider is a policy form
u s e d t o revise o r a d d
coverage in an in-force
life or health policy.
• Also known as an
endorsement.
,◉ Commissioner of insurance in texas is appointed by. Answer: The
governor
◉ Commissioner of insurance in texas powers are:. Answer: • To
enforce insurance rules and law
• But not to make law!
• Not a public prosecutor
• Cannot sentence you to jail or prison
-Sets Continuing Education requirements
• To approve producer licenses and insurer's Certificates of
Authority
• To approve insurer endorsement forms
• Can request information about fraudulent claims, but NOT THE
INSURED.
• Examines the records of each admitted and domestic insurer at
least once every 5 years.
◉ How often does commissioner of texas Examines the records of
each admitted and domestic insurer. Answer: at least once every 5
years.
◉ Reinsurance reserves. Answer: > The Department will NOT tell an
insurer to release
their reinsurance reserves.
,◉ Commissioner of Insurance sanction and penalties. Answer: •
10:30 Rule
> 10 days notice before revoking certificate of authority
>The hearing must be held within 30 days of the
request
◉ Stock. Answer: -Owned by shareholders
-Dividend is a sharing of
profit but never
guaranteed
◉ M u t u a l. Answer: -Owned by policyholders
-Dividend is a return of
premium but never
guaranteed
◉ Fraturnal benefit societies. Answer: Provides insurance only to
their members
◉ Types of insurers. Answer: -stock
-mutual
, -fraternal benefit societies
◉ • Examples of activities that involve transaction insurance.
Answer: Collecting premiums
◉ What is NOT an example of transaction insurance. Answer: *Not
setting up appointments
* Not paying claims
* Not selling mutual fun
◉ Advertising insurance. Answer: An insurer's full (complete)
corporate name must be included on each of it's advertisements
◉ General Lines Life, Accident, & Health License. Answer: No exam
required for
licensing a person who has
a CLU- Chartered Life
Underwriter designation
Not required:
High school diploma
U.S. citizen
21 years old
2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Underwriting. Answer: process of classifying a
risk for the purpose of
issuing insurance
coverage
◉ Insurable interest. Answer: In life & health
insurance, insurable
interest must exist at the
time of application.
◉ R i d e r. Answer: A rider is a policy form
u s e d t o revise o r a d d
coverage in an in-force
life or health policy.
• Also known as an
endorsement.
,◉ Commissioner of insurance in texas is appointed by. Answer: The
governor
◉ Commissioner of insurance in texas powers are:. Answer: • To
enforce insurance rules and law
• But not to make law!
• Not a public prosecutor
• Cannot sentence you to jail or prison
-Sets Continuing Education requirements
• To approve producer licenses and insurer's Certificates of
Authority
• To approve insurer endorsement forms
• Can request information about fraudulent claims, but NOT THE
INSURED.
• Examines the records of each admitted and domestic insurer at
least once every 5 years.
◉ How often does commissioner of texas Examines the records of
each admitted and domestic insurer. Answer: at least once every 5
years.
◉ Reinsurance reserves. Answer: > The Department will NOT tell an
insurer to release
their reinsurance reserves.
,◉ Commissioner of Insurance sanction and penalties. Answer: •
10:30 Rule
> 10 days notice before revoking certificate of authority
>The hearing must be held within 30 days of the
request
◉ Stock. Answer: -Owned by shareholders
-Dividend is a sharing of
profit but never
guaranteed
◉ M u t u a l. Answer: -Owned by policyholders
-Dividend is a return of
premium but never
guaranteed
◉ Fraturnal benefit societies. Answer: Provides insurance only to
their members
◉ Types of insurers. Answer: -stock
-mutual
, -fraternal benefit societies
◉ • Examples of activities that involve transaction insurance.
Answer: Collecting premiums
◉ What is NOT an example of transaction insurance. Answer: *Not
setting up appointments
* Not paying claims
* Not selling mutual fun
◉ Advertising insurance. Answer: An insurer's full (complete)
corporate name must be included on each of it's advertisements
◉ General Lines Life, Accident, & Health License. Answer: No exam
required for
licensing a person who has
a CLU- Chartered Life
Underwriter designation
Not required:
High school diploma
U.S. citizen
21 years old
