Questões de Texas Statutes - Life Only

1. TDI-PEARSONVUE — 2026

Brandon takes out a policy loan against his $200,000 whole life policy. The insurer charges him an adjustable interest rate. What is the maximum interest rate the insurer can charge annually under Texas law?

1. A)15% per year if using an adjustable rate
2. B)10% per year regardless of rate type
3. C)18% per year
4. D)There is no maximum rate on policy loans

Gabarito: A

TIC 1110.004 permits policy loan interest rates up to 10% per year for fixed rates or an adjustable rate not exceeding the lesser of 15% per year or another statutory benchmark. The 15% cap applies to adjustable rates.

2. TDI-PEARSONVUE — 2026

A life insurance company in Texas receives a claim on Monday, June 5th. By what date must the insurer acknowledge receipt of this claim?

1. A)June 10th
2. B)June 20th
3. C)June 30th
4. D)July 5th

Gabarito: B

Under TIC 542.055, an insurer must acknowledge receipt of a claim not later than the 15th day after receiving notice of the claim. June 5th + 15 days = June 20th.

3. TDI-PEARSONVUE — 2026

A life insurance policy in Texas has been in force for 3 years when the insurer discovers the insured made a material misrepresentation on the application. What can the insurer do?

1. A)Void the policy and return all premiums paid
2. B)Contest the policy only if fraud is proven
3. C)Nothing, because the two-year incontestability period has expired
4. D)Reduce the death benefit proportionately

Gabarito: C

TIC 1101.006 provides that a policy in force for two years from its date of issue during the lifetime of the insured is incontestable, except for nonpayment of premiums.

4. TDI-PEARSONVUE — 2026

How many total continuing education hours must a Texas life and health agent complete during each license period?

1. A)12 hours
2. B)20 hours
3. C)24 hours
4. D)30 hours

Gabarito: C

License holders must complete 24 hours of continuing education during the license period.

5. TDI-PEARSONVUE — 2026

An insurer receives a death claim notification on January 10. By what date must the insurer acknowledge receipt of the claim to comply with Texas prompt payment requirements?

1. A)January 25 (within 15 days)
2. B)January 20 (within 10 days)
3. C)February 9 (within 30 days)
4. D)January 11 (within 24 hours)

Gabarito: A

TIC 542.055 requires insurers to acknowledge receipt of a claim not later than the 15th day after receiving notice (30th business day for eligible surplus lines insurers). January 10 + 15 days = January 25.

6. TDI-PEARSONVUE — 2026

A group life insurance policy covers employees and also offers coverage for their dependent children. When does coverage for a newborn child typically become effective?

1. A)From the moment of birth
2. B)31 days after birth
3. C)Only after the employee notifies the insurer and pays additional premium
4. D)After a medical examination of the newborn

Gabarito: A

TIC 1367.003 prohibits excluding or limiting initial coverage of a newborn child for a period of time and prohibits limiting coverage for congenital defects. This ensures immediate coverage from birth for dependents under group policies.