Texas life agent license rules: applying, renewing and appointments

A quarter of the Life Agent exam is Texas law common to life and health, and the licensing questions in it are pure numbers: 12 months, 90 days, $50, $10. These are the ones candidates mix up.

Questions and answers, explained

All 12 questions above, with the correct answer and why it is correct. Everything here is on texas life agent license rules: applying, renewing and appointments.

1. A person wants to sell life insurance, accident and health insurance, and memberships in an HMO in Texas. Which license is required?

   • AA limited lines license
   • BA temporary license, renewed every 180 days
   • CA general life, accident, and health licenseCorrect
   • DA life agent license

   Why: TIC 4054.051 requires the general life, accident, and health license for an agent who represents an HMO, who writes life, accident and health insurance, who writes only accident and health, or who writes fixed or variable annuities or variable life. The life agent license (TIC 4054.301) covers life and annuities but not HMO memberships or major medical coverage.

   Reference TIC 4054.051, 4054.301 — Texas outline I.C.1.a

2. Under TIC 4054.301, which coverage may a Texas life agent licensee write?

   • ALife insurance and annuities, including accidental death and disability income benefitsCorrect
   • BHomeowners and auto insurance
   • CMajor medical plans and HMO memberships, which share the same license as life insurance
   • DWorkers compensation insurance

   Why: TIC 4054.301 covers coverage on human lives, including endowment benefits and annuities, benefits for death or dismemberment by accident and disability income benefits, plus fixed or variable annuities and variable life. HMO memberships and major medical require the general life, accident and health license.

   Reference TIC 4054.301 — Texas Life Agent outline I.C.1.a

3. Daniel just received his Texas general life, accident, and health license. What else does he need before he may engage in business as an agent for an insurer?

   • ACompletion of his first 24 hours of continuing education
   • BA second exam on the insurer's products
   • CA surety bond filed with the commissioner
   • DAn appointment by an authorized insurerCorrect

   Why: TIC 4001.201 says a licensed person may not engage in business as an agent unless appointed by an insurer authorized to do business in Texas. The license shows he is qualified; the appointment authorizes him to represent that particular insurer.

   Reference TIC 4001.201 — Texas outline I.C.3

4. Which is a requirement for TDI to issue an individual agent license?

   • ABeing at least 18 years oldCorrect
   • BLiving in Texas for at least one year
   • CHaving two years of sales experience
   • DHolding a college degree in business or finance from an accredited school

   Why: Pearson VUE's Texas handbook lists the requirements: at least 18 years old, the required exam passed with a completed application submitted within 12 months, the application fee and fingerprint receipt, and no act that is a ground for denial under TIC 4005.101 and 28 TAC 1.502.

   Reference Pearson VUE TX handbook #124400 (General license requirements); TIC 4005.101 — Texas outline I.C.1

5. Paola passed the Texas life agent exam. How long does she have to submit a completed license application before she must retake the exam?

   • ATwo years, the same as the license term
   • B12 monthsCorrect
   • C90 days
   • D30 days

   Why: Candidates who do not submit a completed license application within 12 months of passing must retake the examination (Pearson VUE Texas handbook). The application, fee and fingerprint receipt go through Sircon.

   Reference Pearson VUE TX handbook #124400 (License applications) — Texas outline I.C.6

6. An applicant wants both a life agent license and a property and casualty license in Texas. What must she submit?

   • ANothing; the second license is issued automatically
   • BOne combined application with a single fee that covers every license she wants
   • CA letter from her employer instead of an application
   • DA separate application and fee for each license typeCorrect

   Why: Applicants for more than one license type submit a separate application and fee for each type; the fee is $50 per license type and is non-refundable and non-transferable (Pearson VUE Texas handbook).

   Reference Pearson VUE TX handbook #124400 (License applications; application fees) — Texas outline I.C.1

7. An agent licensed in Oklahoma, in good standing and with similar authority, applies for a Texas nonresident license. Oklahoma licenses Texas agents on a reciprocal basis. Must she take the Texas exam?

   • AYes; every nonresident must pass both the general and the Texas sections of the exam
   • BNo, but she must work under a Texas agent for one year
   • CNo; a reciprocal nonresident with similar authority is exempt from the examCorrect
   • DYes, but only the Texas law section

   Why: Nonresident applicants who hold a license in good standing in their home state with the same or similar authority, from a state that licenses Texas residents reciprocally, are not required to take the exam (Pearson VUE Texas handbook; TIC Chapter 4056). A nonresident without a home-state license must submit criminal history records.

   Reference TIC 4056; Pearson VUE TX handbook #124400 (Licensed non-residents) — Texas outline I.C.1.b

8. Ramón moves to Texas from Arizona, where he held a life agent license until he moved two months ago. Under the Texas rules for new residents, he:

   • AMust wait one year before applying
   • BMust pass the full exam, because a license from another state never transfers to Texas
   • CKeeps his Arizona license and needs no Texas license
   • DMay apply without the exam, because he held the same license within the past 90 daysCorrect

   Why: New Texas residents who held the same or similar license in their previous home state within the 90 days before the Texas application do not have to pass the exam; they apply electronically with fingerprints and show the prior license (Pearson VUE Texas handbook).

   Reference Pearson VUE TX handbook #124400 (Previously licensed new resident applicants) — Texas outline I.C.2

9. Which statement about a Texas temporary license is correct?

   • AIt lets the holder represent any number of insurers
   • BIt is issued only after the exam is passed
   • CIt cannot be renewed, and the holder may not take additional appointmentsCorrect
   • DIt can be renewed for another 180 days if the holder has not yet passed the exam

   Why: The Pearson VUE Texas handbook states that the temporary license may not be renewed and that a temporary licensee may not obtain additional appointments. Sponsors are also capped at 500 temporary licensees a year, at least 70% of whom must take the exam.

   Reference TIC 4001.151-.156; Pearson VUE TX handbook #124400 (Temporary licenses; additional appointments) — Texas outline I.C.1.c

10. Diego's Texas agent license expired 45 days ago. What may he do?

    • ANothing; once expired he must retake the exam and apply as a brand-new agent
    • BRenew it, paying a late fee equal to half the renewal feeCorrect
    • CKeep selling until the next renewal cycle
    • DRenew it at no extra cost within 6 months

    Why: Under the Texas late-renewal rules, a license expired less than 90 days may be renewed with a late fee of one-half the renewal fee. Between 90 days and one year it cannot be renewed but may be reinstated without the exam (new application, license fee and an extra half fee). After one year the person must obtain a new license.

    Reference TIC 4003; Pearson VUE TX handbook #124400 (Late renewals) — Texas outline I.C.6

11. A Texas agent's license has been expired for eight months. What is the correct path back?

    • ARenew it online with a late fee equal to half the renewal fee, just as within 90 days
    • BRetake and pass the full licensing exam
    • CRequest a temporary license for 180 days
    • DReinstate it without the exam by filing a new application, the license fee and an extra half feeCorrect

    Why: Expired more than 90 days but less than one year, a license cannot be renewed, but it can be reinstated without the exam by submitting a new license application, the license fee and an additional fee of one-half the license fee through Sircon (Pearson VUE Texas handbook).

    Reference Pearson VUE TX handbook #124400 (Late renewals) — Texas outline I.C.6

12. A licensed Texas agent starts representing a second insurer. When must that insurer file the notice of appointment, and what does it cost?

    • ANever; one appointment covers every insurer
    • BOnly at the agent's next license renewal
    • CThe day the agent begins representing it, with a $10 feeCorrect
    • DWithin 90 days after the agent's first sale for that insurer, at no cost

    Why: Each insurer the agent represents must file a notice of appointment with TDI the day the agent begins representing it, and each additional company appointment carries a $10 fee. The agent may sell only lines for which the agent holds a license (Pearson VUE Texas handbook; TIC 4001.201-.206).

    Reference TIC 4001.201-.206; Pearson VUE TX handbook #124400 (Additional appointments) — Texas outline I.C.3

Drill the whole domain

• Texas Statutes and Rules Common to Life and Health (25%)
• Texas Statutes and Rules — Life Insurance Only (12.5%)

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