Free Texas Life practice questions

Answer: D. December 31, 2022, through December 31, 2026, the year before the exam

Sec. 401.053 fixes the default span of an examination: it starts on the last day the most recent examination covered and runs to December 31 of the year before the year in which the examination is conducted. The prior review ended December 31, 2022, and the new examination is conducted in 2027, so the period runs from December 31, 2022, through December 31, 2026. The statute does not stop the period at the date the examination starts, does not shrink it to the latest calendar year, and does not reach back to January 1, 2022, which the prior examination already covered. Only a department request can make the examination cover a longer period.

Answer: C. His grandmother on his father's side

Tex. Ins. Code Sec. 1104.003(d) limits the beneficiary of a policy a minor acquires under this subchapter to the minor, the minor's estate, or the minor's spouse, child, parent, grandparent, or sibling. A grandmother is on that list. An aunt is a relative, but aunts are not among the listed relationships, and an employer and a friend fall outside the list entirely, so none of them may be named.

Answer: C. As the same type of benefits as the underlying life policy

Texas has a specific construction rule for this: benefits from a long-term care rider attached to a life insurance policy or annuity are treated as the same type of benefits as the base policy. So the rider is not classified as standalone long-term care insurance carrying the separate $300,000 tier, and it is not health benefit plan coverage either; Texas's definition of a health benefit plan leaves out long-term care coverage in any case. The rule does not take rider benefits out of coverage; it tells the association which kind of benefit they are.

Answer: C. It does not qualify, because it falls outside the 12-month window

To issue an individual agent license, the department must find that the applicant passed the required licensing examination within the past 12 months. A result that is 14 months old falls outside that window, so it cannot satisfy this condition. The standard names a 12-month period only, so the 24-month and lifetime readings misstate it, and the standard lists no insurer certification that could stand in for a current passing result.

Answer: C. An officer or stockholder of that business

The Code permits a for-profit corporation, joint stock association, or trust estate to be named beneficiary of a policy insuring the life of one of its officers or stockholders. That is the class the provision names. A customer who owes a debt, a supplier under contract, and an employee of a competitor are not persons the provision names, so those choices fail as answers to what this provision authorizes.

Answer: B. Five years

Sec. 401.052(a) lets the Texas Department of Insurance examine a carrier as often as it considers necessary, but sets a floor: each carrier must be examined at least once every five years. Three years is a schedule the department may choose, but it is not the outer limit the statute sets. Seven or ten years would leave the carrier unexamined longer than the law allows. Carriers organized or incorporated for fewer than five years fall under examination-frequency rules the commissioner adopts under Sec. 401.052(b), which is why the stem describes an older carrier.

Answer: D. It is excluded because the owner, not the insurer, bears its risk

Texas excludes from coverage any part of a policy or contract that the insurer does not guarantee or under which the owner carries the risk. The subaccounts fit that description, so only the guaranteed fixed account remains eligible for coverage, subject to the statutory limits. The $250,000 annuity ceiling limits covered annuity value; it does not bring an unguaranteed portion into coverage. How the subaccount value compares with the fixed account plays no part in the rule. The Moody's-based interest limit is a separate exclusion for interest-rate-based parts and is not the reason this portion falls outside coverage.

Answer: D. At least 40 hours, within 30 days after the application is delivered or mailed

An agent, insurer, or health maintenance organization considering a temporary license applicant for appointment must provide at least 40 hours of training no later than the 30th day after the application materials are delivered or mailed to the department. The 24-hour option has the right deadline but too few hours, the 40-hour option on a 90-day schedule has the right hours but misses the 30-day deadline, and the 20-hour option on a 60-day schedule fails on both counts.

Answer: D. Nonpayment of the premiums that are due under the policy

A Texas group life policy must provide that, after it has been in force for two years after its date of issue, its validity cannot be contested except for nonpayment of premiums. This policy passed the two-year mark on March 1, 2024, so nonpayment is the only ground left. A misstatement in the application is not a listed exception, so it is barred once the two years have run, and the statute names no exception for a change in the employer's hazards or for a later drop in enrollment.

Answer: D. $250, paid at the insurer's own option to that person

A Texas group life policy must pay the death benefit to the beneficiary the insured designated, subject to a right the insurer may reserve in the policy and state in the certificate to pay, at its option, up to $250 to a person equitably entitled to it for having incurred funeral or last-illness expenses. The figure is $250, so $100, $500 and $1,000 all misstate it. The statute leaves the payment to the insurer's option and says nothing of beneficiary consent, and it reaches any person the insurer finds equitably entitled, not only a funeral home.