Texas Insurance Laws &
Regulations: Life, Health, and
Industry Overview Exam
Questions and Answers 100%
PASS
What is the primary duty of the Texas Department of Insurance? -
CORRECT ANSWER-To regulate the business of insurance in Texas.
What system does the Texas Department of Insurance administer? -
CORRECT ANSWER-The worker's compensation system.
What is the role of the Commissioner of the Texas Department of Insurance?
- CORRECT ANSWER-The Commissioner is the chief executive and
administrative officer, appointed by the Governor.
What qualifications must the Commissioner of Insurance have? - CORRECT
ANSWER-Must be a Texas citizen, well-informed in insurance, and have 5
years of relevant experience.
How long is the term for the Commissioner of Insurance? - CORRECT
ANSWER-Two years, ending on February 1st of each odd-numbered year.
,What authority does the Commissioner have regarding insurance
regulations? - CORRECT ANSWER-The Commissioner can make rules to
regulate the Department's affairs and enforce penalties.
How often must an insurance company be examined for solvency? -
CORRECT ANSWER-At least once every 5 years.
What can the Commissioner do if unfair practices are suspected? -
CORRECT ANSWER-Issue a cease and desist order and hold a hearing after
giving 30 days' notice.
What is the maximum administrative penalty for violating insurance laws in
Texas? - CORRECT ANSWER-$25,000, unless specified otherwise by law.
What must the department provide after issuing a report on a violation? -
CORRECT ANSWER-Written notice within 14 days, including a summary of
the violation and penalty.
What is the time frame for a person to respond to a notice of violation? -
CORRECT ANSWER-20 days to accept the penalty or request a hearing.
What actions can the department take for violations of insurance laws? -
CORRECT ANSWER-Deny, suspend, revoke licenses, assess penalties, or
reprimand license holders.
Define 'Transacting Insurance'. - CORRECT ANSWER-Includes solicitation,
negotiations, effectuation of contracts, and advising on coverage or claims.
Who is considered an insurance agent in Texas? - CORRECT ANSWER-An
individual who sells, solicits, or negotiates insurance for compensation.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,What is required for an insurance agent to transact business in Texas? -
CORRECT ANSWER-The agent must be appointed by an insurer.
What is the role of a life and health insurance counselor? - CORRECT
ANSWER-To offer insurance advice for a fee or commission.
What is an insurance broker in Texas? - CORRECT ANSWER-A
representative of the insured.
What are Fraternal Benefit Societies? - CORRECT ANSWER-Organizations
that solicit insurance among members and exist for their benefit.
What is 'Controlled Business' in insurance? - CORRECT ANSWER-Policies
written on individuals the agent has direct influence over, like family or
employers.
What are the age requirements for a resident agent license applicant in
Texas? - CORRECT ANSWER-Must be at least 18 years old.
What must an applicant for an insurance agent license not have done? -
CORRECT ANSWER-Committed acts that warrant denial, suspension, or
revocation.
What must an applicant pass to obtain an insurance agent license in Texas?
- CORRECT ANSWER-The state exam for the lines of authority sought.
What exemptions exist for insurance agent licensing in Texas? - CORRECT
ANSWER-Officers, directors, or employees of insurers not involved in selling
insurance contracts.
, Who is exempt from holding an insurance producer license? - CORRECT
ANSWER-Individuals limited to executive, administrative, managerial, or
clerical activities, among others.
What is required for a nonresident agent to apply for a license in Texas? -
CORRECT ANSWER-They must submit an application form, proof of
resident license in good standing, and fees.
What must licensed agents moving to Texas do within 90 days? - CORRECT
ANSWER-They must apply for a resident license after canceling their
previous license.
What is the maximum duration for a temporary insurance agent license? -
CORRECT ANSWER-90 days without requiring an examination.
What can an applicant do if their license is denied? - CORRECT ANSWER-
They can appeal in writing to the Commissioner within 30 days.
How often must resident agents renew their license? - CORRECT ANSWER-
Every 2 years.
What are the continuing education requirements for license renewal? -
CORRECT ANSWER-24 hours of continuing education, including 2 hours on
ethics.
What happens if a licensee allows their license to lapse? - CORRECT
ANSWER-They can reinstate it within 90 days by paying the renewal fee and
a penalty.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
Regulations: Life, Health, and
Industry Overview Exam
Questions and Answers 100%
PASS
What is the primary duty of the Texas Department of Insurance? -
CORRECT ANSWER-To regulate the business of insurance in Texas.
What system does the Texas Department of Insurance administer? -
CORRECT ANSWER-The worker's compensation system.
What is the role of the Commissioner of the Texas Department of Insurance?
- CORRECT ANSWER-The Commissioner is the chief executive and
administrative officer, appointed by the Governor.
What qualifications must the Commissioner of Insurance have? - CORRECT
ANSWER-Must be a Texas citizen, well-informed in insurance, and have 5
years of relevant experience.
How long is the term for the Commissioner of Insurance? - CORRECT
ANSWER-Two years, ending on February 1st of each odd-numbered year.
,What authority does the Commissioner have regarding insurance
regulations? - CORRECT ANSWER-The Commissioner can make rules to
regulate the Department's affairs and enforce penalties.
How often must an insurance company be examined for solvency? -
CORRECT ANSWER-At least once every 5 years.
What can the Commissioner do if unfair practices are suspected? -
CORRECT ANSWER-Issue a cease and desist order and hold a hearing after
giving 30 days' notice.
What is the maximum administrative penalty for violating insurance laws in
Texas? - CORRECT ANSWER-$25,000, unless specified otherwise by law.
What must the department provide after issuing a report on a violation? -
CORRECT ANSWER-Written notice within 14 days, including a summary of
the violation and penalty.
What is the time frame for a person to respond to a notice of violation? -
CORRECT ANSWER-20 days to accept the penalty or request a hearing.
What actions can the department take for violations of insurance laws? -
CORRECT ANSWER-Deny, suspend, revoke licenses, assess penalties, or
reprimand license holders.
Define 'Transacting Insurance'. - CORRECT ANSWER-Includes solicitation,
negotiations, effectuation of contracts, and advising on coverage or claims.
Who is considered an insurance agent in Texas? - CORRECT ANSWER-An
individual who sells, solicits, or negotiates insurance for compensation.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,What is required for an insurance agent to transact business in Texas? -
CORRECT ANSWER-The agent must be appointed by an insurer.
What is the role of a life and health insurance counselor? - CORRECT
ANSWER-To offer insurance advice for a fee or commission.
What is an insurance broker in Texas? - CORRECT ANSWER-A
representative of the insured.
What are Fraternal Benefit Societies? - CORRECT ANSWER-Organizations
that solicit insurance among members and exist for their benefit.
What is 'Controlled Business' in insurance? - CORRECT ANSWER-Policies
written on individuals the agent has direct influence over, like family or
employers.
What are the age requirements for a resident agent license applicant in
Texas? - CORRECT ANSWER-Must be at least 18 years old.
What must an applicant for an insurance agent license not have done? -
CORRECT ANSWER-Committed acts that warrant denial, suspension, or
revocation.
What must an applicant pass to obtain an insurance agent license in Texas?
- CORRECT ANSWER-The state exam for the lines of authority sought.
What exemptions exist for insurance agent licensing in Texas? - CORRECT
ANSWER-Officers, directors, or employees of insurers not involved in selling
insurance contracts.
, Who is exempt from holding an insurance producer license? - CORRECT
ANSWER-Individuals limited to executive, administrative, managerial, or
clerical activities, among others.
What is required for a nonresident agent to apply for a license in Texas? -
CORRECT ANSWER-They must submit an application form, proof of
resident license in good standing, and fees.
What must licensed agents moving to Texas do within 90 days? - CORRECT
ANSWER-They must apply for a resident license after canceling their
previous license.
What is the maximum duration for a temporary insurance agent license? -
CORRECT ANSWER-90 days without requiring an examination.
What can an applicant do if their license is denied? - CORRECT ANSWER-
They can appeal in writing to the Commissioner within 30 days.
How often must resident agents renew their license? - CORRECT ANSWER-
Every 2 years.
What are the continuing education requirements for license renewal? -
CORRECT ANSWER-24 hours of continuing education, including 2 hours on
ethics.
What happens if a licensee allows their license to lapse? - CORRECT
ANSWER-They can reinstate it within 90 days by paying the renewal fee and
a penalty.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
