INSURANCE LICENSE PRACTICE XCEL SOLUTIONS FINAL EXAM #12 - TEXAS LIFE
ONLY | 2025/2026
Actual Exam with Complete Questions & Correct Detailed Answers | 100% Verified | A+ Graded
Overview
This 2025/2026 updated resource contains the actual Practice Xcel Solutions Final Exam
#12 for Texas Life Insurance licensing preparation. Includes 100% verified questions and
detailed answers aligned with the Texas Department of Insurance (TDI) current exam
content outline.
Key Features
✓ Actual Practice Xcel exam format and difficulty
✓ 100% verified answers with comprehensive rationales
✓ Texas-specific laws, rules, and regulations
✓ Key term definitions and TDI code references
✓ A+ graded solutions with proven test-taking strategies
Core Content Areas
• Texas Insurance Laws & Regulations (25 Qs)
• Life Insurance Policies & Riders (20 Qs)
• Annuities & Retirement Planning (15 Qs)
• Underwriting & Policy Issue (12 Qs)
• Taxation, Ethics & Fraud Prevention (10 Qs)
• Texas-Specific Provisions & Exceptions (8 Qs)
Answer Format
Correct answers are marked in bold green and include:
• Detailed citation of Texas Insurance Code and TDI Administrative Rules
• Explanation of why other choices are incorrect
• Memory aids and study tips for state-specific content
• Reference to official TDI study guide sections
Updates for 2025/2026
Reflects 2025 Texas legislative updates affecting life insurance
Updated TDI exam content outline changes
Revised tax laws impacting life and annuity products
Enhanced ethics and consumer protection scenarios
TEXAS INSURANCE LAWS & REGULATIONS (Questions 1–25)
1. Under Texas Insurance Code §101.051, a domestic insurer must maintain its principal
office in:
a) Austin only
b) Any city in Texas
c) Dallas County
, d) Harris County
b) Any city in Texas
Rationale: Code allows any Texas location; Austin is common but not mandatory.
2. The Texas Department of Insurance (TDI) Commissioner is appointed by:
a) Governor with Senate confirmation
b) Popular vote
c) House of Representatives
d) State Bar of Texas
a) Governor with Senate confirmation
Rationale: 4-year term; Tex. Ins. Code §31.001.
3. An insurer’s Certificate of Authority (COA) must be renewed:
a) Annually
b) Biennially
c) Every 3 years
d) Every 5 years
b) Biennially
Rationale: Tex. Ins. Code §823.003; odd-numbered years.
4. A life insurer must respond to a policyholder complaint within:
a) 10 business days
b) 15 calendar days
c) 21 business days
d) 30 calendar days
b) 15 calendar days
Rationale: TDI rule 28 TAC §21.202; acknowledgment + status.
5. Which entity regulates life insurance rates in Texas?
a) TDI
b) Department of State Health Services
c) Office of Public Insurance Counsel
d) No regulation – free market
a) TDI
Rationale: Prior-approval system for life insurance filings under Ch. 1103.
6. A foreign insurer must deposit how much securities with the Comptroller to
transact business in Texas?
a) $100,000
b) $200,000
c) $500,000
d) $1,000,000
c) $500,000
Rationale: Tex. Ins. Code §803.051; reduced from $1 M in 2023 amendment.
7. The Texas Life and Health Insurance Guaranty Association covers individual life
policies up to:
a) $100,000
b) $300,000
c) $500,000
d) $1,000,000
c) $500,000
Rationale: Tex. Ins. Code §463.102; aggregate per insured.
ONLY | 2025/2026
Actual Exam with Complete Questions & Correct Detailed Answers | 100% Verified | A+ Graded
Overview
This 2025/2026 updated resource contains the actual Practice Xcel Solutions Final Exam
#12 for Texas Life Insurance licensing preparation. Includes 100% verified questions and
detailed answers aligned with the Texas Department of Insurance (TDI) current exam
content outline.
Key Features
✓ Actual Practice Xcel exam format and difficulty
✓ 100% verified answers with comprehensive rationales
✓ Texas-specific laws, rules, and regulations
✓ Key term definitions and TDI code references
✓ A+ graded solutions with proven test-taking strategies
Core Content Areas
• Texas Insurance Laws & Regulations (25 Qs)
• Life Insurance Policies & Riders (20 Qs)
• Annuities & Retirement Planning (15 Qs)
• Underwriting & Policy Issue (12 Qs)
• Taxation, Ethics & Fraud Prevention (10 Qs)
• Texas-Specific Provisions & Exceptions (8 Qs)
Answer Format
Correct answers are marked in bold green and include:
• Detailed citation of Texas Insurance Code and TDI Administrative Rules
• Explanation of why other choices are incorrect
• Memory aids and study tips for state-specific content
• Reference to official TDI study guide sections
Updates for 2025/2026
Reflects 2025 Texas legislative updates affecting life insurance
Updated TDI exam content outline changes
Revised tax laws impacting life and annuity products
Enhanced ethics and consumer protection scenarios
TEXAS INSURANCE LAWS & REGULATIONS (Questions 1–25)
1. Under Texas Insurance Code §101.051, a domestic insurer must maintain its principal
office in:
a) Austin only
b) Any city in Texas
c) Dallas County
, d) Harris County
b) Any city in Texas
Rationale: Code allows any Texas location; Austin is common but not mandatory.
2. The Texas Department of Insurance (TDI) Commissioner is appointed by:
a) Governor with Senate confirmation
b) Popular vote
c) House of Representatives
d) State Bar of Texas
a) Governor with Senate confirmation
Rationale: 4-year term; Tex. Ins. Code §31.001.
3. An insurer’s Certificate of Authority (COA) must be renewed:
a) Annually
b) Biennially
c) Every 3 years
d) Every 5 years
b) Biennially
Rationale: Tex. Ins. Code §823.003; odd-numbered years.
4. A life insurer must respond to a policyholder complaint within:
a) 10 business days
b) 15 calendar days
c) 21 business days
d) 30 calendar days
b) 15 calendar days
Rationale: TDI rule 28 TAC §21.202; acknowledgment + status.
5. Which entity regulates life insurance rates in Texas?
a) TDI
b) Department of State Health Services
c) Office of Public Insurance Counsel
d) No regulation – free market
a) TDI
Rationale: Prior-approval system for life insurance filings under Ch. 1103.
6. A foreign insurer must deposit how much securities with the Comptroller to
transact business in Texas?
a) $100,000
b) $200,000
c) $500,000
d) $1,000,000
c) $500,000
Rationale: Tex. Ins. Code §803.051; reduced from $1 M in 2023 amendment.
7. The Texas Life and Health Insurance Guaranty Association covers individual life
policies up to:
a) $100,000
b) $300,000
c) $500,000
d) $1,000,000
c) $500,000
Rationale: Tex. Ins. Code §463.102; aggregate per insured.
