Questões de Texas Statutes and Rules Common to Life and Health

1. TDI-PEARSONVUE — 2026

What is the maximum net cash surrender value covered per life by the Texas Life and Health Guaranty Association?

1. A)$50,000
2. B)$100,000
3. C)$200,000
4. D)$300,000

Gabarito: B

The Texas Life and Health Guaranty Association covers cash surrender values up to $100,000 per individual life.

2. TDI-PEARSONVUE — 2026

Which of the following describes a 'fraternal benefit society' under Texas insurance law?

1. A)A company owned by stockholders that issues life insurance policies
2. B)A nonprofit organization operating under a lodge system that provides benefits to its members
3. C)An insurance company domiciled in a country other than the United States
4. D)A mutual insurance company that sells policies only to Texas residents

Gabarito: B

A fraternal benefit society is a nonprofit organization that operates under a lodge system with a representative form of government and provides insurance benefits to its members. It is distinct from stock, mutual, or foreign/alien insurers.

3. TDI-PEARSONVUE — 2026

An agent tells a prospect that policy dividends are guaranteed in order to make the sale. This practice is an example of:

1. A)Twisting
2. B)Rebating
3. C)Misrepresentation
4. D)Commingling

Gabarito: C

Making false or misleading statements about policy dividends, which are not guaranteed, constitutes misrepresentation.

4. TDI-PEARSONVUE — 2026

An agent tells a prospect that purchasing a specific life insurance policy will result in a portion of the premium being returned as a special cash bonus. This practice is known as:

1. A)Misrepresentation
2. B)Rebating
3. C)Commingling
4. D)Twisting

Gabarito: B

Rebating is the practice of offering or giving anything of value not specified in the policy as an inducement to purchase insurance. Promising a cash bonus constitutes illegal rebating.

5. TDI-PEARSONVUE — 2026

An agent is convicted of a felony involving theft. Within what timeframe must the agent notify the Texas Department of Insurance of this conviction?

1. A)10 days
2. B)15 days
3. C)30 days
4. D)60 days

Gabarito: C

A licensee must notify the department not later than the 30th day after the date of a felony conviction.

6. TDI-PEARSONVUE — 2026

An insurance agent tells a prospect that a competitor's policy will lapse after two years, knowing this statement is false. This practice is an example of:

1. A)Twisting
2. B)Rebating
3. C)Misrepresentation
4. D)Commingling

Gabarito: C

Making false statements about a competitor's policy constitutes misrepresentation. Twisting involves using misrepresentation to induce replacement, rebating involves giving unauthorized inducements, and commingling involves mixing personal and client funds.