What is on the Texas Insurance Exam?

Passing the Texas insurance exam requires knowing exactly what to expect. With a 70% passing score requirement and up to 130 questions to answer, preparation is key. National statistics show only 57.9% of first-time test takers pass their insurance examsInsurance Exams Property Casualty Health And Life Insurance Exam Pass Rates Blog.achievable.me, making comprehensive understanding of exam content crucial for success.

Exam Structure Overview

Texas insurance exams consist of two main sections:

• General/National Section: Core insurance concepts applicable nationwide (70-75% of exam)
• State-Specific Section: Texas laws, regulations, and requirements (25-30% of exam)

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Life, Accident & Health Exam Content

Total: 130 questions, 2.5 hours

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General Insurance Concepts (15-20% of exam)

Understanding foundational principles is essential:

• Insurance basics: Risk management, peril, hazard
• Contract fundamentals: Offer, acceptance, consideration
• Legal concepts: Insurable interest, representations vs. warranties
• Agency law: Agent authority, fiduciary responsibility

Life Insurance (35-40% of exam)

This section covers products in an industry that generated $213.75 billion in direct premiums in 2023En News Insights Latest News Headlines Us Life Insurance Industry Brings In 213 75b In Premiums In 2023 82281057 Marketintelligence:

• Policy types: Term, whole life, universal life, variable products
• Policy provisions: Grace period, reinstatement, non-forfeiture options
• Beneficiary designations: Primary, contingent, revocable/irrevocable
• Settlement options: Lump sum, life income, fixed period
• Underwriting and risk classification

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Health Insurance (25-30% of exam)

• Medical expense plans: Major medical, comprehensive coverage
• Managed care: HMOs, PPOs, EPOs differences
• Disability income: Short-term vs. long-term
• Medicare: Parts A, B, C, D coverage
• Group vs. individual coverage

Texas-Specific Content (25-30% of exam)

Critical state requirements include:

• Texas Insurance Code provisions
• Unfair trade practices and penalties
• Agent licensing requirements
• Claims procedures and time limits

Property & Casualty Exam Content

Total: 130 questions, 2.5 hours

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Property Insurance (30-35% of exam)

Texas's unique property risks make this section particularly important:

• Homeowners forms: HO-3, HO-5, HO-6
• Commercial property coverage forms
• Perils: Named perils vs. open perils
• Valuation methods and coinsurance

Casualty/Liability Insurance (30-35% of exam)

• General liability coverage types
• Auto insurance: Liability, collision, UM/UIM
• Professional liability
• Workers' compensation

Texas-Specific Content (25-30% of exam)

• Texas liability limits
• Windstorm insurance and TWIA coverage
• FAIR Plan eligibility
• State-specific forms and endorsements

Most Tested Texas Topics

Licensing Requirements

The Texas Department of Insurance oversees thousands of licensed agents:

• Education requirements for initial licensing
• License renewal every 2 years
• Continuing education: 24 hours including 3 hours ethics
• Appointment procedures

Consumer Protection Laws

Texas maintains strong consumer protections:

• Replacement regulations: 60-day notice requirement
• Free look periods: 10 days lifeConsumer Cb018.html Pubs, 30 days Medicare supplement
• Claims acknowledgment: within 15 days
• Privacy requirements

Agent Conduct

• Prohibited practices: twisting, churning, rebating
• Disclosure requirements
• Fiduciary responsibilities
• Record retention: 5 years minimum

Question Types

Understanding question structure improves performance:

1. Definition Questions (20-25%): Test understanding of key terms
2. Application Questions (40-45%): Apply knowledge to scenarios
3. Calculation Questions (10-15%): Test mathematical concepts
4. Exception Questions (15-20%): Watch for "EXCEPT" or "NOT"
5. State-Specific Questions (25-30%): Test Texas regulations

High-Impact Study Areas

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For Life & Health:

• Policy provisions and riders (30% of questions)
• Beneficiary rules and tax treatment
• Medicare eligibility
• Settlement options calculations

For Property & Casualty:

• Coverage triggers and exclusions
• Deductible applications
• Liability limits
• Windstorm coverage (Texas-specific)

Common Exam Traps

1. Negative Questions: Watch for "NOT," "EXCEPT," or "FALSE"
2. Absolute Terms: Be cautious with "always" or "never"
3. Time Limits: Know Texas-specific requirements exactly
4. Coverage Assumptions: Never assume coverage exists

Practice Exam Strategy

Successful candidates typically:

• Take 5-10 full practice exams
• Score 80%+ consistently before attempting
• Review every missed question thoroughly
• Time themselves strictly

Exam Day Success Tips

Before the Exam:

• Arrive 30 minutes early
• Bring required government ID
• Leave prohibited items in car

During the Exam:

• Read questions completely
• Use scratch paper for calculations
• Flag difficult questions
• About 1 minute per question average

After Passing

Your journey continues:

• Immediate fingerprinting scheduling
• Submit application through Sircon/NIPR
• Pay $50 application fee
• Await TDI approval (1-5 business days)

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The Bottom Line

Success on the Texas insurance exam comes from understanding both the breadth and depth of the tested content. While the exam covers extensive material, modern study tools like Aceable's comprehensive coursesResources Insurance.aceable.com use proven techniques to help you master what matters most. With proper preparation focused on heavily tested topics and Texas-specific requirements, you can join the ones who pass on their first attempt.