TEXAS LIFE AND HEALTH INSURANCE EXAM
PREP VERIFIED QUESTIONS & ANSWERS
PEARSON VUE STATE LICENSING STUDY
GUIDE
Pass your Pearson VUE Texas Life & Health Insurance
licensing exam on the very first try with this
comprehensive question practice guide. Every
multiple-choice question features verified correct
answers alongside bolded, high-yield rationales
specifically designed to maximize retention and study
efficiency. Perfect for students, career-changers, and
finance professionals looking to master Texas state
regulations, policy provisions, and healthcare laws
instantly.
1. Which of the following bodies regulates the Texas insurance
industry and enforces the Texas Insurance Code?
A) The National Association of Insurance Commissioners
(NAIC)
B) The Texas Department of Insurance (TDI)
C) The Federal Trade Commission (FTC)
D) The Texas Bureau of Financial Regulation
• Answer: B
,• Rationale: The Texas Department of Insurance (TDI),
headed by the Insurance Commissioner, is the state
agency responsible for regulating the insurance
industry, issuing licenses, and enforcing state insurance
laws.
2. In Texas, a temporary insurance agent's license is valid for a
maximum period of how many days?
A) 30 days
B) 60 days
C) 90 days
D) 180 days
• Answer: C
• Rationale: Under the Texas Insurance Code, a temporary
license may be issued to an applicant for up to 90 days
without requiring an exam, provided they are sponsored
by a licensed insurance company.
3. An agent who makes a statement that is falsely critical of or
maliciously derogatory to the financial condition of an insurer
is guilty of which unfair trade practice?
A) Defamation
B) Misrepresentation
C) Twisting
D) Coercion
• Answer: A
• Rationale: Defamation involves making any oral or
written statement that is false or maliciously critical of
the financial condition of an insurer or agent with the
intent to injure their business reputation.
,4. An insurance agent convinces a policyowner to cancel an
existing life insurance policy to purchase a new one with
another company by misrepresenting the terms of the new
policy. This prohibited practice is known as:
A) Churning
B) Rebating
C) Defamation
D) Twisting
• Answer: D
• Rationale: Twisting is the illegal practice of inducing a
policyholder to lapse, forfeit, or surrender an existing
policy to buy a new one from another company using
misrepresentation or incomplete comparisons.
5. How many hours of Continuing Education (CE) must a
licensed Texas insurance agent complete during each
biennial renewal period?
A) 12 hours
B) 24 hours
C) 30 hours
D) 40 hours
• Answer: B
• Rationale: Texas agents must complete 24 hours of
continuing education every two years (biennially) to
maintain their license.
6. Of the total Continuing Education hours required for a Texas
agent, how many hours must focus strictly on ethics or
consumer protection?
A) 1 hour
, B) 2 hours
C) 3 hours
D) 5 hours
• Answer: C
• Rationale: Out of the 24 required biennial CE hours, at
least 3 hours must cover ethics or consumer protection
topics.
7. Within how many days must a Texas insurance agent notify
the TDI of a change in their legal name, residential address,
or business email address?
A) 10 days
B) 15 days
C) 30 days
D) 45 days
• Answer: C
• Rationale: A licensed agent must notify the Texas
Department of Insurance within 30 days of any change
to their official contact information or legal name.
8. What is the minimum age requirement to obtain a resident
insurance agent license in the state of Texas?
A) 16
B) 18
C) 21
D) 25
• Answer: B
PREP VERIFIED QUESTIONS & ANSWERS
PEARSON VUE STATE LICENSING STUDY
GUIDE
Pass your Pearson VUE Texas Life & Health Insurance
licensing exam on the very first try with this
comprehensive question practice guide. Every
multiple-choice question features verified correct
answers alongside bolded, high-yield rationales
specifically designed to maximize retention and study
efficiency. Perfect for students, career-changers, and
finance professionals looking to master Texas state
regulations, policy provisions, and healthcare laws
instantly.
1. Which of the following bodies regulates the Texas insurance
industry and enforces the Texas Insurance Code?
A) The National Association of Insurance Commissioners
(NAIC)
B) The Texas Department of Insurance (TDI)
C) The Federal Trade Commission (FTC)
D) The Texas Bureau of Financial Regulation
• Answer: B
,• Rationale: The Texas Department of Insurance (TDI),
headed by the Insurance Commissioner, is the state
agency responsible for regulating the insurance
industry, issuing licenses, and enforcing state insurance
laws.
2. In Texas, a temporary insurance agent's license is valid for a
maximum period of how many days?
A) 30 days
B) 60 days
C) 90 days
D) 180 days
• Answer: C
• Rationale: Under the Texas Insurance Code, a temporary
license may be issued to an applicant for up to 90 days
without requiring an exam, provided they are sponsored
by a licensed insurance company.
3. An agent who makes a statement that is falsely critical of or
maliciously derogatory to the financial condition of an insurer
is guilty of which unfair trade practice?
A) Defamation
B) Misrepresentation
C) Twisting
D) Coercion
• Answer: A
• Rationale: Defamation involves making any oral or
written statement that is false or maliciously critical of
the financial condition of an insurer or agent with the
intent to injure their business reputation.
,4. An insurance agent convinces a policyowner to cancel an
existing life insurance policy to purchase a new one with
another company by misrepresenting the terms of the new
policy. This prohibited practice is known as:
A) Churning
B) Rebating
C) Defamation
D) Twisting
• Answer: D
• Rationale: Twisting is the illegal practice of inducing a
policyholder to lapse, forfeit, or surrender an existing
policy to buy a new one from another company using
misrepresentation or incomplete comparisons.
5. How many hours of Continuing Education (CE) must a
licensed Texas insurance agent complete during each
biennial renewal period?
A) 12 hours
B) 24 hours
C) 30 hours
D) 40 hours
• Answer: B
• Rationale: Texas agents must complete 24 hours of
continuing education every two years (biennially) to
maintain their license.
6. Of the total Continuing Education hours required for a Texas
agent, how many hours must focus strictly on ethics or
consumer protection?
A) 1 hour
, B) 2 hours
C) 3 hours
D) 5 hours
• Answer: C
• Rationale: Out of the 24 required biennial CE hours, at
least 3 hours must cover ethics or consumer protection
topics.
7. Within how many days must a Texas insurance agent notify
the TDI of a change in their legal name, residential address,
or business email address?
A) 10 days
B) 15 days
C) 30 days
D) 45 days
• Answer: C
• Rationale: A licensed agent must notify the Texas
Department of Insurance within 30 days of any change
to their official contact information or legal name.
8. What is the minimum age requirement to obtain a resident
insurance agent license in the state of Texas?
A) 16
B) 18
C) 21
D) 25
• Answer: B
