Texas Licensing & Producer Law — Texas Insurance Law — Life & Health Practice Test

This Texas Insurance Law — Life & Health Texas Licensing & Producer Law practice set has 19 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Texas Licensing & Producer Law bank with the correct answer and an explanation. The practice quiz above draws 19 questions at random from the same bank.

1. In Texas, which license authorizes an individual to sell, solicit, or negotiate individual life insurance, annuities, and accident and health insurance?

   • A general lines license with a life, accident, and health line of authority — Correct answer
   • A surplus lines license
   • A public insurance adjuster license
   • A limited lines travel insurance license

   Explanation: Texas issues a general lines license by line of authority; the life, accident, and health line authorizes transacting those insurance products. (Tex. Ins. Code §§4001.003, .006)

   Handbook: Texas Licensing & Producer Law — Agent/Agency License Types

2. A business entity in Texas (a corporation, partnership, or LLC) that wants to act as an insurance agency must:

   • Hold its own agency license separate from the individual licenses of its agents — Correct answer
   • Rely solely on the individual license of its majority owner
   • Apply only if it employs more than 10 licensed agents
   • Register with the Secretary of State instead of TDI

   Explanation: An agency (business entity) must obtain and hold its own license in addition to each individual agent's license before transacting insurance business. (Tex. Ins. Code §§4001.104-.106)

   Handbook: Texas Licensing & Producer Law — Agent/Agency License Types

3. Under Texas law, a temporary license is most commonly issued to allow which of the following to continue transacting the deceased or disabled agent's business?

   • The surviving spouse, business partner, or designated representative of a deceased or disabled license holder — Correct answer
   • Any member of the public who requests one
   • Only a licensed attorney handling the estate
   • A competing agency that acquires the book of business

   Explanation: Texas allows a temporary license so an agent's business does not go unserved following the license holder's death, disability, or military service, while a permanent successor is licensed. (Tex. Ins. Code §§4001.151-.156)

   Handbook: Texas Licensing & Producer Law — Temporary Licenses