Texas Life, Accident & Health Insurance Producer Exam — Complete Study Guide (2026)

Texas outline Section II (6 of the 30 state-specific items). Headings: A. marketing and solicitation (advertising and illustrations; policy summary and buyer's guide); B. individual life and annuity policy provisions (free look through settlement at maturity); D. group life; E. credit life; F. replacement; G. nonforfeiture law.

This chapter is the Texas statute behind the life-insurance material in Chapters 1 to 4. Its weight is small (six items) but the questions are specific, so the chapter is organized as sections with the number to remember in bold.

13.1 Marketing and Solicitation (Outline II.A)

Advertising and illustrations

Advertising rules were covered in Chapter 12 (28 TAC 21.104 to 21.122). Illustrations have their own subchapter, which applies to all group and individual life insurance policies and certificates except variable life, annuities, credit life, and policies with no illustrated death benefit over $10,000 (28 TAC 21.2203). It applies to policies sold on or after July 1, 2000 (28 TAC 21.2214). The rules:

• Purpose. Illustrations must not mislead; the subchapter prescribes formats, standards and required disclosures (28 TAC 21.2201).
• Labeling. An illustration must be clearly labeled "life insurance illustration" and contain the basic information the rule lists (28 TAC 21.2206(1)).
• Prohibited conduct (28 TAC 21.2206(2)). An insurer or agent may not: represent the policy as anything other than life insurance; use or describe non-guaranteed elements in a misleading way; state or imply that non-guaranteed elements are guaranteed; use an illustration that does not comply; use one that depicts performance more favorable than the insurer's illustrated scale; give an incomplete illustration; represent that premium payments will not be required each year to maintain the illustrated benefit unless true; use the term "vanish" or "vanishing premium" or a similar term implying the policy becomes paid up; use a lapse-supported illustration (except for policies that can never develop nonforfeiture values); use an illustration that is not self-supporting; use an illustration or software not approved by the insurer under the advertising-control rule (21.122); or use an illustration on a policy the insurer did not identify as one to be marketed with an illustration.
• Delivery (28 TAC 21.2209). If a basic illustration is used and the policy is applied for as illustrated, a copy signed under the rule goes to the insurer at application and a copy to the applicant. If the policy is issued other than as applied for, a "Revised Illustration" conforming to the policy as issued is sent with the policy and signed and dated by the owner and producer no later than delivery. If no illustration is used (or the policy differs from the illustration), the producer or insurer certifies that in writing on a form, the applicant acknowledges that no conforming illustration was provided and that one will be provided at delivery at the latest, and that form goes to the insurer at application.
• Annual report to the owner on policy status when an illustration was used (28 TAC 21.2210) and an illustration actuary, appointed by the insurer's board, who certifies that the disciplined current scale conforms to actuarial standards (21.2211).
• Penalties. A violation of the illustration subchapter is a misrepresentation of the terms of a policy under Chapter 541, subject to the penalties of that chapter (28 TAC 21.2212).
• In-force illustration. For policies with non-guaranteed elements, the insurer must offer at least annually to provide the owner an in-force illustration; it must be offered free of charge if non-guaranteed charges or the credited rate have changed (TIC 1101.206).

Policy summary and buyer's guide

A policy summary is a written statement that, for a policy other than universal life, contains at a minimum the current death benefit, annual contract premium, current cash surrender value, current dividend, application of the current dividend, and the amount of any outstanding loan; for a universal life policy it contains the reporting period dates, the policy value at the beginning and end of the period, the amounts credited or debited by type (interest, mortality, expense, riders), the death benefit, the net cash surrender value and any loan (TIC 1114.003). The summary is used in the replacement process (Section 13.5).

The buyer's guide is an annuity concept: for an annuity transaction, the appropriate buyer's guide is the latest NAIC buyer's guide for the type of annuity (fixed deferred, equity-indexed, variable) (28 TAC 4.2310). If the buyer's guide and disclosure document are not provided at or before application, the free look is at least 15 calendar days (28 TAC 4.2311, next section).

13.2 Individual Life and Annuity Policy Provisions (Outline II.B)

The Code requires a life policy to contain provisions substantially the same as Subchapter B of Chapter 1101 (TIC 1101.002), and the subchapter applies to a life policy issued or delivered in Texas or by a Texas-organized insurer (1101.001). The outline lists sixteen provisions. The statute and rule for each, in the outline's order:

Free looks in Texas: a comparison

The free look is a favorite question because the periods differ by product. Read the product, then the period.

The outline places 28 TAC 4.2311 under the life "free look" heading. That rule, adopted January 2024, is the annuity free look.

The group and credit chapters

Group and credit life are separate blocks of the outline, covered next.

13.3 Group Life (Outline II.D)

The detail is in the In Texas box of Chapter 4. As an exam list:

1. Eligibility and underwriting (TIC 1131.204 for an employer group): the policy must cover at least two employees at issue; a non-contributory plan insures all eligible employees (or all except those not satisfactorily insurable). Other group types: 100 individuals (1131.254), 10 employees or members (1131.304), 50 debtors in a creditor group (1131.454); 75 percent participation when employees contribute (1131.254, 1131.304).
2. Conversion to individual policy (TIC 1131.110, 1131.111; 1131.354 for spouse conversion rights): within 31 days; not term; amount not to exceed the amount that ceased; on policy termination, five years of coverage, cap of the lesser of the amount that ceased (less other group coverage) or $2,000.
3. Dependent coverage (TIC 1131.151, 1131.802): family members may be covered, including children younger than 25 and disabled children.
4. Assignment (TIC 1131.006): any assignee except the employer.
5. Required provisions (TIC 1131.101): a group policy must contain the provisions of the subchapter or more favorable ones; the standard individual provisions do not apply to group life. Grace period 31 days (1131.103); incontestable two years except for nonpayment (1131.104).
6. Accelerated benefits (TIC 1111.052 for individual and group term policies; the outline also cites TIC 1551.254 and 28 TAC 4.1101). Section 1551.254 concerns accelerated benefits in the state employees group program. 28 TAC 4.1101 is the purpose section of TDI's accelerated-benefit rules: it sets uniform standards for acceleration-of-life-insurance benefits for insureds facing terminal or life-threatening illnesses or conditions, and lets insurers, with proper disclosures, offer benefits that may not qualify for favorable federal tax treatment.