Free Annuities Practice Questions
Texas General Lines — Life, Accident, Health & HMO exam (series InsTX-LAH05) — 58 practice questions.
Subtopics: Annuity CE, Best interest, Annuity disclosure, Annuity prohibited practices, Annuity free look, Principles, Immediate vs deferred, Products, Payment options, Uses, Taxation, Parties to an annuity, Flexible premium annuity, Cash refund option, Installment refund option, Period certain option, Annuity units, Separate account, Tax-deferred accumulation, Exclusion ratio, Early withdrawal penalty, Annuitization, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio, Indexed annuities, Market value adjustment, Variable annuities, Payout options, Bonus annuities, Annuity death benefit, Annuity taxation, 1035 exchanges, Surrender charges, Parties, Suitability
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Sample questions & answers
1. A Texas resident agent who sells annuities must complete how many hours of annuity-specific continuing education during each two-year licensing period?
Eight hours
An agent selling annuities must complete eight hours of annuity CE each two-year period; these hours count toward the general 24-hour requirement.
2. Under Texas law, an agent is presumed to act in the consumer's best interest when recommending an annuity if the agent satisfies which obligations?
Care, disclosure, conflict of interest, and documentation
An agent is presumed to meet the best-interest standard by satisfying the care, disclosure, conflict-of-interest, and documentation obligations.
3. Before recommending or selling an annuity, a Texas agent must give the consumer a disclosure describing:
The agent's role, which products and insurers the agent can sell, and how the agent is compensated
The disclosure, similar to the NAIC Insurance Agent Disclosure for Annuities, covers the agent's relationship, authorized products and insurers, and compensation sources and types.
4. Under the Texas annuity best-interest law, an agent may not:
Discourage a consumer from filing a complaint
An agent or insurer may not dissuade a consumer from truthfully confirming profile information, filing a complaint, or cooperating with an investigation.
All General Lines — Life, Accident, Health & HMO topics
Practice: Annuities
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
