Texas Life & Health Insurance Exam — All Questions
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Which state agency issues resident life and health insurance agent licenses in Texas?
- a.Texas Department of Financial Services
- b.Texas Department of Insurance (TDI)✓
- c.Texas Insurance Commission
- d.Texas Board of Insurance Agents
The Texas Department of Insurance (TDI) regulates the business of insurance in Texas and issues agent licenses. TDI is led by the Commissioner of Insurance. There is no separate 'Department of Financial Services' or 'Insurance Commission' handling agent licensing in Texas.
In Texas, an agent who wants to sell both life and health insurance products typically holds which license?
- a.A separate license for each product issued by different state agencies
- b.The General Lines - Life, Accident, Health and HMO license✓
- c.A property and casualty agent license
- d.A surplus lines license
Texas issues a General Lines - Life, Accident, Health and HMO license that authorizes the holder to sell life insurance, accident and health insurance, and HMO products. Property and casualty and surplus lines are separate license lines for different products.
How many hours of continuing education must a Texas resident life and health agent complete during each two-year license period?
- a.12 hours, none required in ethics
- b.24 hours, including at least 3 hours of ethics✓
- c.40 hours, including 5 hours of ethics
- d.No continuing education is required in Texas
Texas requires 24 hours of continuing education every two-year license period, and at least 3 of those hours must be in ethics (the ethics requirement increased from 2 to 3 hours for licenses expiring on or after September 30, 2022). At least half of the hours must be classroom or classroom-equivalent. Completing CE and paying the renewal fee keeps the license active.
Before a licensed Texas agent may transact business on behalf of a specific insurer, what must occur?
- a.Nothing beyond holding a valid license
- b.The insurer must file a notice of appointment for that agent with TDI✓
- c.The agent must post a surety bond with the state treasurer
- d.The agent must reside in the insurer's home state
A license alone lets a person act as an agent, but to represent a particular company the insurer must appoint the agent and file that appointment with TDI. An agent may hold appointments from more than one insurer.