Texas Personal Lines Insurance License Exam — All Questions
3 questions
Which agency issues resident personal lines insurance producer (agent) licenses in Texas?
- a.Texas Department of Insurance (TDI)✓
- b.The Texas Bureau of Insurance Agents
- c.The National Association of Insurance Commissioners
- d.The federal Department of Insurance
Insurance in Texas is regulated at the state level by the Texas Department of Insurance (TDI), headed by the Commissioner of Insurance. TDI licenses and renews agents, reviews rates and forms, and enforces the Texas Insurance Code. The NAIC is a standards body, not a licensing agency, and there is no federal insurance department. Source: Texas Department of Insurance (https://www.tdi.texas.gov).
After an agent is licensed in Texas, what generally must occur before he or she can transact business for a specific insurer?
- a.Nothing further - a license alone lets the agent bind any insurer
- b.The insurer must appoint the agent and file the appointment with TDI✓
- c.The agent must be elected by policyholders
- d.The agent must register with the NAIC
A license lets a person act as an agent, but to represent a specific insurer that company must appoint the agent and file the appointment with the Texas Department of Insurance. An agent may hold appointments from many insurers at once. Source: Texas Department of Insurance.
Which statement about continuing education (CE) for resident personal lines agents in Texas is correct?
- a.Agents must complete state-approved CE, typically including an ethics component, each renewal cycle✓
- b.CE is never required once the license is issued
- c.CE is set and enforced by the federal government
- d.Only life agents have any CE duty
To renew, resident Texas agents must complete state-approved continuing education each cycle, typically including an ethics component. Exact hour totals and the renewal period are set by TDI and can change, so verify current requirements with the Texas Department of Insurance (https://www.tdi.texas.gov).