PRACTICE EXAM OF TEXAS LIFE &
HEALTH INSURANCE. "SECTION 1-
TEXAS COMMON LAW" 2026
1) A person appointed by an insurer to solicit or sell insurance on their behalf in
this state is known as a(n):
A- Adjuster
B- Agent
C- Broker
D- Solicitor - Correct answer-B- Agent
1) Texas resident agents must complete _____ hours of continuing education every
two years.
A- 10
B- 40
C- 24
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,D- 20 - Correct answer-C- 24
1) Which of the following is NOT prohibited under the Unfair Practices section of
insurance law:
A- Making false oral statements about the financial condition of a person which are
calculated to injure that person
B- Readjusting group premium rates based on loss or expense experience
C- Misleading or false statements about dividends previously paid on an insurance
policy
D- Discriminating between insurance applicants on the basis of gender - Correct
answer-B- Readjusting group premium rates based on loss or expense experience
1) An insurance company can have rates based on:
A- Gender
B- Ethnic background
C- Religion
D- Nationality - Correct answer-A- Gender
1) Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as:
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, A- Defamation
B- Rebating
C- Misleading advertising
D- Coercion - Correct answer-D- Coercion
1) Shareholders own a ___________ insurer:
A- Stock
B- Fraternal
C- Reciprocal
D- Mutual - Correct answer-A- Stock
1) An insurance company authorized to sell insurance in Texas, but with their home
office in Illinois, is called a/an:
A- Alien company
B- Domestic company
C- Foreign company
D- Surplus company - Correct answer-C- Foreign company
1) Regarding Claims Methods and Practices, all of the following are true EXCEPT:
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
HEALTH INSURANCE. "SECTION 1-
TEXAS COMMON LAW" 2026
1) A person appointed by an insurer to solicit or sell insurance on their behalf in
this state is known as a(n):
A- Adjuster
B- Agent
C- Broker
D- Solicitor - Correct answer-B- Agent
1) Texas resident agents must complete _____ hours of continuing education every
two years.
A- 10
B- 40
C- 24
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,D- 20 - Correct answer-C- 24
1) Which of the following is NOT prohibited under the Unfair Practices section of
insurance law:
A- Making false oral statements about the financial condition of a person which are
calculated to injure that person
B- Readjusting group premium rates based on loss or expense experience
C- Misleading or false statements about dividends previously paid on an insurance
policy
D- Discriminating between insurance applicants on the basis of gender - Correct
answer-B- Readjusting group premium rates based on loss or expense experience
1) An insurance company can have rates based on:
A- Gender
B- Ethnic background
C- Religion
D- Nationality - Correct answer-A- Gender
1) Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as:
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, A- Defamation
B- Rebating
C- Misleading advertising
D- Coercion - Correct answer-D- Coercion
1) Shareholders own a ___________ insurer:
A- Stock
B- Fraternal
C- Reciprocal
D- Mutual - Correct answer-A- Stock
1) An insurance company authorized to sell insurance in Texas, but with their home
office in Illinois, is called a/an:
A- Alien company
B- Domestic company
C- Foreign company
D- Surplus company - Correct answer-C- Foreign company
1) Regarding Claims Methods and Practices, all of the following are true EXCEPT:
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
