Texas Life and Health Insurance Agent Exam
Need of a License: An individual who is acting as an agent or producer needs a license to sell life and health insurance in Texas.Who Grants a License: Licenses are granted by the Texas Department of Insurance.
Qualifications to receive a License: Individuals who wish to obtain an insurance license in the State of Texas:
1. Be at least eighteen (18) years of age.
2. Be a resident of the state.
3. Register to take exam and pay fee.
4. Make a fingerprint reservation.
5. Pass the examination.
6. Get fingerprinted.
7. Apply for a license.
Fingerprint Instructions: All applicants for a license must have a fingerprint check from IdentoGO.
Applying for the Producer Exam: It is highly recommended that the Texas Insurance Licensing Candidate Handbook be reviewed, and special attention be given to the content outlines (available at www.pearsonvue.com), before taking an examination. The State of Texas utilizes Pearson VUE to develop and administer its insurance licensing examination program. Online reservations are the most efficient way for candidates to schedule their examination. Candidates must go to www.pearsonvue.com/tx/insurance to make an online reservation for an examination. Candidates may call (888) 754-7667 to make an exam reservation by phone.
Test Information: A scaled score of 70 is required to pass the exam. Each examination is based on a detailed content outline of topics, subtopics, and references to applicable state laws, statutes and regulations. The Texas Insurance Licensing Candidate Handbook contains specific content information beyond the following general outlines:
LIFE – GENERAL KNOWLEDGE CONTENT (50 scoreable questions plus 10 pretest questions)
I. TYPES OF POLICIES (12)
A. Traditional whole life products
B. Interest/market-sensitive life products
C. Term life
D. Annuities
E. Combination plans and variations
II. POLICY RIDERS, PROVISIONS, OPTIONS, AND EXCLUSIONS (19)
A. Policy riders
B. Policy provisions and options
C. Policy exclusions
III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICY (11)
A. Completing the application
B. Underwriting
C. Delivering the policy
IV. TAXES, RETIREMENT, AND OTHER INSURANCE CONCEPTS (8)
A. Third-party ownership
B. Group life insurance
C. Retirement plans
D. Life insurance needs analysis/suitability
E. Social Security benefits and taxes
F. Tax treatment of insurance premiums, proceeds, and dividends
TEXAS-SPECIFIC LIFE CONTENT OUTLINE - State, Statutes, Rules and Regulations (35 scoreable questions plus 5 pretest questions)
I. TEXAS STATUTES AND RULES COMMON TO LIFE AND HEALTH INSURANCE
A. Commissioner of Insurance
B. Insurance definitions
C. Licensing requirements
D. Marketing practices
E. Agent duties/responsibilities
II. TEXAS STATUTES AND RULES PERTINENT TO LIFE INSURANCE ONLY
A. Marketing and Solicitation
B. Policy provisions
C. Group life
D. Credit life
E. Nonforfeiture law
LIFE AND HEALTH-GENERAL KNOWLEDGE CONTENT OUTLINE - Product Knowledge, Terms and Concepts (100 scoreable questions plus 20 pretest questions)
I. TYPES OF LIFE POLICIES
A. Traditional whole life products
B. Interest/market-sensitive life products
C. Term life
D. Annuities
E. Combination plans and variations
II. LIFE POLICY RIDERS, PROVISIONS, OPTIONS, AND EXCLUSIONS
A. Policy riders
B. Policy provisions and options
C. Policy exclusions
III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE LIFE POLICY
A. Completing the application
B. Underwriting
C. Delivering the policy
IV. TAXES, RETIREMENT, AND OTHER LIFE INSURANCE CONCEPTS
A. Third-party ownership
B. Group life insurance
C. Retirement plans
D. Life insurance needs analysis/suitability
E. Social Security benefits and taxes
F. Tax treatment of insurance premiums, proceeds, and dividends
V. TYPES OF HEALTH POLICIES
A. Disability income
B. Accidental death and dismemberment
C. Medical expense insurance
D. Medicare supplement policies
E. Group insurance
F. Long Term Care (LTC)
G. Limited Benefit Plans
VI. HEALTH POLICY PROVISIONS, CLAUSES, AND RIDERS
A. Mandatory provisions
B. Optional provisions
C. Other provisions and clauses
D. Riders
E. Rights of renewability
VII. SOCIAL INSURANCE
A. Medicare
B. Medicaid
C. Social Security benefits
VIII. OTHER HEALTH INSURANCE CONCEPTS
A. Total, partial, and residual disability
B. Owner’s rights
C. Dependent children benefits
D. Primary and contingent beneficiaries
E. Modes of premium payments
F. Nonduplication and coordination of benefits
G. Occupational vs. non-occupational
H. Tax treatment of premiums and proceeds of insurance contracts
I. Managed care
J. Workers Compensation
K. Subrogation
IX. FIELD UNDERWRITING PROCEDURES
A. Completing application and obtaining necessary signatures
B. Explaining sources of insurability information
C. Initial premium payment and receipt and consequences of the receipt
D. Submitting application to company for underwriting
E. Ensuring delivery of policy and related documents to client
F. Explaining policy and its provisions, riders, exclusions, and ratings to clients
G. Replacement
H. Contract law
LIFE and HEALTH AGENT STATE SPECIFIC CONTENT OUTLINE (25 scoreable questions plus 5 pretest questions)
I. TEXAS STATUTES AND RULES COMMON TO LIFE AND HEALTH INSURANCE
A. Commissioner of Insurance
B. Insurance definitions
C. Licensing requirements
D. Marketing practices
E. Agent duties/responsibilities
II. TEXAS STATUTES AND RULES PERTINENT TO LIFE INSURANCE ONLY
A. Marketing and Solicitation
B. Policy provisions
C. Group life
D. Credit life
E. Nonforfeiture law
III. TEXAS STATUTES AND RULES PERTINENT TO ACCIDENT AND HEALTH INSURANCE ONLY
A. Required policy provisions
B. Medicare supplement
C. AIDS testing requirements
D. Long Term Care
E. Small group health insurance
F. Certificate of Coverage
IV. TEXAS STATUTES AND RULES PERTINENT TO HEALTH MAINTENANCE ORGANIZATIONS
A. Definitions
B. Evidence of coverage
C. Nonrenewal/cancellation
D. Enrollment
How to Apply for the License: To apply electronically candidates can go online to Sircon at
www.sircon.com/texas. Or, mail completed paper applications to:
DataStream Technologies
18568 Forty Six Parkway, Suite 2001
Spring Branch, TX 78070
Phone: (888) 325-6580
State Licensing Information:
Texas Department of Insurance
333 Guadalupe
Austin, TX 78701
Phone: (512) 322-3503
Fax: (512) 490-1029
www.tdi.texas.gov
Pearson VUE Licensing Information:
Pearson VUE
Texas Insurance
Attn: Regulatory Program
5601 Green Valley Dr.
Bloomington, MN 55437
(888) 754-7667
License Renewal Requirements: Individual Producer licenses must be renewed every two years and there is a continuing education requirement.
Applicable Regulations: Life and health insurance agents in Texas are regulated by the Texas Department of Insurance.
For more information on life and health insurance agent licensing and exam preparation, go to Tests.com’s Life and Health Insurance Exam Guide.
And take Tests.com’s free Life and Health Insurance Agent Practice Test.
For life and health insurance agent exam preparation products, such as study guides, flashcards and courses, go to Tests.com’s Life and Health Insurance Sales Exam listings.
