United States
Hong KongA worked Texas statute question
Three worked Texas items, all ours. Each is answered by working out which provision the facts engage rather than by recalling a number, and each distractor is a real Texas rule pointed at the wrong conduct, the wrong status or the wrong body.
Thirty scored questions on Texas statute, out of 130. Small enough to master and large enough to fail you, which is an awkward combination and the reason this half repays study more than any other.
The three items below were written by us against the published content outline and the Texas Insurance Code, which is public domain and which we hold 47 chapters of. None is a Pearson question.
Question one: naming the conduct
A licensed and appointed Texas agent offers to pay an applicant's first month's premium out of his own commission, to persuade the applicant to buy a life policy. The inducement forms no part of the policy. What has the agent done?
- Twisting
- Rebating
- Misrepresentation
- Defamation
This is the wrong-conduct family and it is the most common construction in the section on statutes common to life and health, which carries 14 questions. The prohibited practices are learned as a list, so the option list looks like the list you learned, and every item on it feels available.
The method that beats it is the one on how to read a statute question: actor, event, clock, consequence. Actor is the agent. Event is an inducement offered outside the policy. There is no clock. The consequence asked for is the name of the conduct, not the penalty. That reaches rebating without evaluating a single option.
Question two: the license is not the permission
A person holds a current Texas General Lines life, accident and health agent license. No insurer has appointed her. A friend asks her to place a life policy with a particular carrier. What does Texas require before she may act for that insurer?
- Nothing further, because the license itself authorizes the sale
- An appointment by that insurer
- A separate agent license for each insurer she represents
- Written approval from the Texas Life and Health Insurance Guaranty Association
License and appointment is the single most useful distinction in the Texas portion, because it recurs across licensing questions, termination questions and questions about who is responsible for what.
Say it once and it sticks. The state lets you sell. The carrier lets you sell its products.
Question three: the wrong actor, on purpose
A Texas insurer becomes insolvent while a policyholder has an unpaid claim outstanding. Which body exists to protect that policyholder?
- The Texas Department of Insurance
- The Commissioner of Insurance
- The Texas Life and Health Insurance Guaranty Association
- The Attorney General of Texas
Notice that the four options are not four ideas. They are four subjects attached to a verb the candidate already believes, which is why reading state questions subject first is worth the two seconds.
None of the three needed a number
| Item | What the facts engaged | The distractor family |
|---|---|---|
| Commission offered as an inducement | Prohibited practices | The wrong conduct from the same list |
| Licensed but not appointed | Appointment, separate from licensing | The right duty on the wrong status |
| Insurer insolvent, claim outstanding | The Guaranty Association | The wrong actor |
That is the shape of the state portion. Candidates arrive expecting to be quizzed on day counts and dollar thresholds, and there are some, but most items are asking whether you can match a fact pattern to a provision.
Our explanations cite the chapter and section anyway, and that is deliberate. Not because you will be asked for it, but because a claim you can check is worth more than one you have to trust, and the Code is free to read.
The content outline cites Title 28 of the Texas Administrative Code across the state sections and we do not hold it. Where an answer turns on an administrative rule rather than on the statute, our explanation reasons from the Code and says so, rather than citing a rule number nobody here has read.
Why this half is worth doing first
Thirty questions across four sections, built on a text you can download. Compare that with 100 general questions across nine sections of insurance principles that no statute defines. The Texas half is smaller, more finite and answerable faster on the day, which is what pays for the general half under a clock of about a minute a question.
Most candidates do it last. We think that is the wrong order and we would say so even if it were inconvenient for us, which it is not.
Common questions
Are these real Texas insurance exam questions?
No. All three were written for this site against the published content outline and the Texas Insurance Code. Nobody here has sat the exam or seen a live form, and no real item is reproduced or paraphrased anywhere on this site.
What is rebating under Texas law?
Offering an inducement that forms no part of the policy to persuade someone to buy it. Paying an applicant's premium out of your commission is the standard example. It is one of several prohibited practices, and exam distractors are usually the others.
Is a Texas insurance license the same as an appointment?
No. The license is the state's qualification to sell the line. An appointment is a particular insurer authorizing you to act for it, and it is governed separately by Texas Insurance Code 4001.201 to .206. Fusing the two is the commonest error in this section.
What does the Texas Life and Health Insurance Guaranty Association do?
It protects policyholders when a life or health insurer becomes impaired or insolvent. It is not the regulator. Exam distractors usually offer the Department or the Commissioner instead, both of which have real authority over insurers but a different purpose.
Do Texas statute questions ask for section numbers?
No. They present facts and ask which provision those facts engage. Citations belong in a good explanation so you can verify the answer against the public Code, not in your memory for exam day.