PRACTICE EXAM OF TEXAS LIFE & HEALTH INSURANCE. "SECTION 1- TEXAS COMMON LAW" 2026

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



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,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:


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, 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:


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