Texas Insurance Law & Code
Beyond getting licensed, Texas agents must know the substantive rules of the Texas Insurance Code that protect policyholders. This chapter covers the structure of the Code and TDI's authority, required policy protections such as the free-look right, the Texas Life and Health Insurance Guaranty Association, and the state's prompt-payment and claims rules. These are Texas-specific overlays on the national policy provisions.
Structure of the Texas Insurance Code
The Texas Insurance Code is the body of statutes that governs insurers, agents, policies, and market conduct in Texas. TDI adopts administrative rules to implement the Code. Different chapters address different subjects: for example, agent licensing, policy provisions, unfair practices (Chapter 541), and prompt payment of claims (Chapter 542). Knowing that the Code and TDI rules together control what an agent may and may not do is foundational.
Policyholder Protections and Required Provisions
Texas requires certain protections in individual policies. A key example is the free-look (right-to-examine) provision, which must give the policyholder at least 10 days after delivery to return an individual life policy for a full premium refund. Replacement transactions and policies sold to seniors can carry longer review periods. Texas also regulates required policy language, grace periods, and disclosures so consumers understand what they are buying.
The Texas Life and Health Insurance Guaranty Association
The Texas Life and Health Insurance Guaranty Association is a safety net that pays certain covered claims of policyholders when a member insurer becomes insolvent. Coverage is subject to statutory dollar limits that vary by benefit type (for example, limits on death benefits, cash value, and annuity values). Importantly, Texas law prohibits agents and insurers from using the existence of the Guaranty Association as an inducement to buy insurance or in advertising; it is a backstop, not a selling point.
Prompt Payment and Claims Handling
Texas law, including prompt-payment provisions in the Insurance Code, sets time frames and standards for how insurers must acknowledge, investigate, and pay or deny claims. Unfair or delayed claim settlement is prohibited. While claims handling is primarily the insurer's duty, agents should understand these protections because they affect how policyholders are treated and what the agent may accurately represent during a sale.
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State-specific details
State exam facts
- State regulator
- Texas Department of Insurance
- Exam vendor
- Pearson VUE
- Prelicensing education
- None required for the permanent General Lines Life, Accident & Health license
- Passing score
- 70%
Who regulates life & health insurance licensing in Texas?
The Texas Department of Insurance (TDI) licenses General Lines Life, Accident & Health agents. TDI contracts with Pearson VUE to deliver the licensing examinations.
Does Texas require prelicensing education for the life & health exam?
No. Texas does not require prelicensing education to obtain the permanent General Lines Life, Accident & Health license; candidates can schedule the Pearson VUE exam directly. (Prelicensing coursework is tied only to the optional temporary license.)
What score do I need to pass the Texas life & health exam?
You must score at least 70% on the Pearson VUE exam administered for the Texas Department of Insurance.
Sources: https://www.tdi.texas.gov/agent/index.html, https://www.pearsonvue.com/us/en/tx/insurance.html
In the Texas Life & Health Insurance Producer Exam guide: A KEY CONCEPT box, a Common Traps list and a Check Yourself set closing each of the 9 national chapters. Practice here stays free.