Page 1 of 36
TEXAS LAWS AND RULES PERTINENT TO
INSURANCE 2025/2026 EXAM CURRENTLY TESTING
QUESTIONS AND DETAILED CORRECT (VERIFIED)
ANSWERS/GUARANTEED PASS/TOP-RATED A+.
LAWS AND RULES
Ace the Texas Laws and Rules Pertinent to Insurance exam with
this state-specific guide, designed to master Texas' unique
insurance regulations, ethical standards, and compliance
protocols. This resource delivers targeted practice questions
and clear explanations covering all major lines of authority, from
property and casualty to health and life insurance statutes.
What is the MINIMUM benefit period that must be offered by
a long-term care policy? ...... ANSWER ....... 12 months
Under Texas insurance law, the term "transacting business"
includes ...... ANSWER ....... collecting premiums
Which Unfair Trade Practice involves an agent telling a
prospective client that a policy's dividends are guaranteed?
*Coercion
*Fraud
, Page 2 of 36
*Misrepresentation
*Sliding ...... ANSWER ....... Misrepresentation
which of the following groups may not be insured by a group
life insurance policy?
Employees,
supervisors,
administrators,
orindividuals who are related by blood ...... ANSWER .......
individuals who are related by blood. A group life
insurance policy may not insure groups consisting
exclusively of persons who are related by marriage,
blood or legal adoption.
An insurance agent has a fiduciary responsibility to all the
following EXCEPT:
applicants
insureds
insurers
other agents ...... ANSWER ....... Other agents
, Page 3 of 36
How long does an insurance company appointment remain
in force? ...... ANSWER ....... Until terminated
An insured may assign up to ______ of policy ownership
under an individual life insurnace policy. ...... ANSWER
....... 100%
Every 12-months after the initial enrollment period, and
HMO must hold an open enrollment period of ......
ANSWER ....... 31 Days
Which of the following is a valid reason for an enrollee to be
cancelled by a Health Maintenance Organization (HMO)
plan? ...... ANSWER ....... Nonpayment of coverage
Which of the following is NOT a required provision in group
Life policies?
Free look
incontestable
conversion
, Page 4 of 36
right to loan ...... ANSWER ....... Right to Loan
A certificate of _______ permits and insurance company to
transact business in Texas ...... ANSWER ....... Authority
Which action will a life insurance company most likely take
if an insured dies and it is discovered that the insured's age
was misstated on the application? ...... ANSWER .......
Pay an amount the premiums would have purchased at
the insured's actual age
Which of the following statements about health coverage for
newborns is NOT true?
coverage includes treatment of genital defects
coverage continues after the first 31 days upon payment of
first premium
coverage is limited to only congenital defects
coverage begins at moment of birth ...... ANSWER .......
coverage is limited to only congenital defects
When advertising, an insurance company MUST use its ......
ANSWER ....... Legal corporate name
TEXAS LAWS AND RULES PERTINENT TO
INSURANCE 2025/2026 EXAM CURRENTLY TESTING
QUESTIONS AND DETAILED CORRECT (VERIFIED)
ANSWERS/GUARANTEED PASS/TOP-RATED A+.
LAWS AND RULES
Ace the Texas Laws and Rules Pertinent to Insurance exam with
this state-specific guide, designed to master Texas' unique
insurance regulations, ethical standards, and compliance
protocols. This resource delivers targeted practice questions
and clear explanations covering all major lines of authority, from
property and casualty to health and life insurance statutes.
What is the MINIMUM benefit period that must be offered by
a long-term care policy? ...... ANSWER ....... 12 months
Under Texas insurance law, the term "transacting business"
includes ...... ANSWER ....... collecting premiums
Which Unfair Trade Practice involves an agent telling a
prospective client that a policy's dividends are guaranteed?
*Coercion
*Fraud
, Page 2 of 36
*Misrepresentation
*Sliding ...... ANSWER ....... Misrepresentation
which of the following groups may not be insured by a group
life insurance policy?
Employees,
supervisors,
administrators,
orindividuals who are related by blood ...... ANSWER .......
individuals who are related by blood. A group life
insurance policy may not insure groups consisting
exclusively of persons who are related by marriage,
blood or legal adoption.
An insurance agent has a fiduciary responsibility to all the
following EXCEPT:
applicants
insureds
insurers
other agents ...... ANSWER ....... Other agents
, Page 3 of 36
How long does an insurance company appointment remain
in force? ...... ANSWER ....... Until terminated
An insured may assign up to ______ of policy ownership
under an individual life insurnace policy. ...... ANSWER
....... 100%
Every 12-months after the initial enrollment period, and
HMO must hold an open enrollment period of ......
ANSWER ....... 31 Days
Which of the following is a valid reason for an enrollee to be
cancelled by a Health Maintenance Organization (HMO)
plan? ...... ANSWER ....... Nonpayment of coverage
Which of the following is NOT a required provision in group
Life policies?
Free look
incontestable
conversion
, Page 4 of 36
right to loan ...... ANSWER ....... Right to Loan
A certificate of _______ permits and insurance company to
transact business in Texas ...... ANSWER ....... Authority
Which action will a life insurance company most likely take
if an insured dies and it is discovered that the insured's age
was misstated on the application? ...... ANSWER .......
Pay an amount the premiums would have purchased at
the insured's actual age
Which of the following statements about health coverage for
newborns is NOT true?
coverage includes treatment of genital defects
coverage continues after the first 31 days upon payment of
first premium
coverage is limited to only congenital defects
coverage begins at moment of birth ...... ANSWER .......
coverage is limited to only congenital defects
When advertising, an insurance company MUST use its ......
ANSWER ....... Legal corporate name
