Texas L&H Statutes Guide: The 30 State-Specific Exam Questions

The Texas Life, Accident & Health exam has 130 scored questions. Thirty of them — nearly a quarter of your score — are Texas-specific statutes and rules. They are also the questions national study materials cover worst, because the content is unique to one state.

Here is what almost no study guide tells you: the state section has its own internal weighting, published in the official Pearson VUE content outline. It is not 30 questions spread evenly.

State-section topic	Scored questions
I. Statutes and rules common to Life and Health	14
II. Pertinent to life insurance only	6
III. Pertinent to accident and health only	7
IV. HMOs	3
Total (plus 5 unscored pretest questions)	30

Read that table again: the "common" block alone is 14 questions — licensing rules, the Commissioner's powers, and unfair trade practices. That is almost half the state section, and it is the most memorization-friendly material on the entire exam. If you are short on study time, this is where the cheapest points are.

Texas publishes its exam content outlines with an effective date, and a new version takes effect September 1, 2026. The overall structure and the 30-question weighting stay the same, but the life-insurance block is now spelled out in far more detail: where the previous outline referred broadly to policy provisions, the new one enumerates each required provision with its own statute citation.

Newly itemized in the state section:

• Entire contract (TIC 1101.003)
• Premiums payable in advance (TIC 1101.004, 28 TAC §4.601)
• Statement of insured (TIC 1101.007)
• Misstatement of age (TIC 1101.008, 28 TAC §4.606)
• Time for settlement of a claim (TIC 1101.011, 28 TAC §4.612)
• Designation of beneficiary, transfer, or assignment (TIC 1103.055)
• Assignment of benefits (TIC 1108.101, 28 TAC §4.623)
• Accelerated term life benefits (TIC 1111.052)
• Limitations of lawsuits (28 TAC §4.619)
• Settlement at maturity (28 TAC §4.621)
• Group life: required provisions (TIC 1131.101), accelerated benefits (TIC 1551.254)
• Accident and health: definition of dependent (TIC 1551.004)

What this means for you: if you test on or after September 1, 2026, expect the life-only questions to hit these provisions by name. If you are testing before then, they are still fair game — they were always part of "required policy provisions", just not listed individually. Either way, learning them is not wasted effort.

The biggest block, and the most learnable. Four themes:

The Commissioner and the Department

General powers and duties, examination of records, investigations and hearings, penalties, and cease-and-desist orders (TIC 31.001–.002, 82.001–.056, 83.051–.054, 521.003–.004, 541.107–.111, 542.010). You do not need the section numbers — you need to know that the Commissioner heads TDI, is appointed by the Governor, and can examine, fine, and order a producer to stop a practice.

Licensing (the densest sub-topic)

• License types: agent/agency, nonresident (TIC 4056), temporary (TIC 4001.151–.156)
• Appointment by an insurer (TIC 4001.201–.206) — you may not act for a carrier that has not appointed you
• Continuing education: TIC 4004.051–.055, 28 TAC §19.1001–.1030
• Records maintenance (TIC 4001.254–.255)
• Denial, renewal, expiration, termination, revocation, suspension (TIC 4003.001–.007, 4005.101–.105)
• Notification duties: change of address, felony convictions, administrative action against you (TIC 4001.252, 4005.101–.102) — reportable, with deadlines

Unfair and prohibited trade practices

This is the trap-question factory. Know the definitions cold and, above all, know them apart from each other:

• Misrepresentation (TIC 541.051–.061) — false statements about a policy's terms or benefits
• False advertising (28 TAC §21.111, 21.114)
• Defamation (TIC 541.053) — false statements about an insurer's financial condition
• Rebating (TIC 541.056) — giving away part of your commission or anything of value to induce a sale
• Boycott, coercion, intimidation (TIC 541.054)
• Commingling (TIC 1104.024) — mixing premium funds with your own
• Unfair discrimination (TIC 544.002) — different rates or terms for individuals of the same class and risk
• Fraud (TIC 701.001–.154)

Texas Life and Health Insurance Guaranty Association

TIC 443.004, 463.205 — the safety net when an insurer becomes insolvent. Exam questions focus on what it is for, not on coverage caps.

Six questions, but they carry the numbers most often tested — and most often gotten wrong.

Policy provisions

• Free look (28 TAC §4.2311) — the buyer may return the policy for a full refund. The standard period is 10 days; see the replacement rule below for the important exception.
• Grace period (TIC 1101.105) — at least one month for individual life; a death during the grace period is paid, minus the overdue premium.
• Incontestability (TIC 1101.006) — after two years, the insurer generally cannot void the policy for misstatements in the application. Read the trap section below before you treat that as absolute.
• Policy loans (TIC 1101.009), prohibited provisions (TIC 1101.054), reinstatement (28 TAC §4.611).
• Misstatement of age (TIC 1101.008) — the benefit is adjusted to what the premium would have bought at the correct age. The policy is not voided.

Replacement — the highest-value rule in this block

Chapter 1114 governs replacing an existing life policy or annuity: purpose (1114.001), definitions (1114.002), and the duties of the agent and the replacing insurer (1114.051–.057). The number to memorize: TIC §1114.053(e) gives the owner 30 days from delivery to return a replacement policy for an unconditional full refund of all premiums paid, including policy fees and charges.

Group life and credit life

Group eligibility and underwriting (TIC 1131.204), conversion to an individual policy when you leave the group (TIC 1131.110–.111, 1131.354), dependent coverage (TIC 1131.151), assignment (TIC 1131.006). Credit life sits in TIC 1153. Nonforfeiture law: TIC 1105.001–.153.

Seven questions, spread across Texas mandates and federal law that Texas tests as part of the state section.

• Coverage for newborns (TIC 1367.003, 28 TAC §3.3403) — a Texas mandate; know that newborn coverage is automatic from birth for a defined window, with notice required to continue it.
• Definition of dependent (TIC 1551.004) — newly itemized in the September 2026 outline.
• Coverage for chemical dependency (TIC 1368.005) — another Texas mandate.
• Medicare supplement minimum standards (28 TAC §3.3301–3.3325) and cancellation rules (§3.3306(E)) — standardized plans, open-enrollment protections.
• AIDS testing requirements (28 TAC §21.704–.705) — consent and confidentiality obligations.
• Long-term care (28 TAC §3.3804, 3.3822, 3.3832) — minimum standards and inflation-protection offers.
• Small group health — eligibility (28 TAC §26.8) and coverage (TIC 1501).
• Affordable Care Act — exchanges (§1321), taxes and subsidies (§§1401–1402), essential health benefits (§§1302, 18022) including mental health/substance use, pediatric and preventive services, and employer notification duties (§§1511–1515).

Only three scored questions, governed by TIC Chapters 843 and 1271 plus 28 TAC Chapter 11. Do not over-invest here — but do not skip it either, because three questions is a full percentage point on your score.

• Definitions (TIC 843.002) — what makes an HMO an HMO
• Evidence of coverage (TIC 843.002, 28 TAC §11.501) — the HMO analogue of a policy
• Nonrenewal and cancellation (TIC 843.208, 28 TAC §11.506(3))
• Enrollment (TIC 843.315(e))
• Out-of-network claims (28 TAC §11.1611)

If you learn nothing else from the Texas section, learn these. They are the ones that appear as answer choices where the other three options are the same rule with a different number.

Rule	Number	Source
Free look, individual life	10 days	28 TAC §4.2311
Right to return a replacement policy	30 days	TIC §1114.053(e)
Incontestability period	2 years	TIC 1101.006
Grace period, individual life	1 month minimum	TIC 1101.105
Continuing education	24 hours / 2 years, including 3 hours ethics	TIC 4004.051–.055
De minimis rebating exception	$25	TIC §541.058(b)(7)

These are wrong in widely circulated study materials — including flashcard decks written for other states. All three were corrected in our own course after a legal review pass.

Myth 1: "After two years, fraud can never be contested"

False in Texas. The two-year incontestability clause (TIC 1101.006) is real, but TIC §705.104 preserves the insurer's misrepresentation defense beyond two years where the misstatement was both material and intentional. Texas is not an absolute-incontestability state. If an answer choice says fraud is always uncontestable after two years, it is wrong.

Myth 2: "The replacement free look is 20 days"

False. It is 30 days under TIC §1114.053(e). The "20 days" figure is a persistent test-prep myth that does not appear in current Texas law.

Myth 3: "Insurable interest is governed by Chapter 1101"

Partly wrong. Chapter 1101 governs required policy provisions — grace period, incontestability, entire contract. Insurable interest in Texas life insurance sits in Chapter 1103 (and Texas common law). The September 2026 outline reinforces this by citing TIC 1103.055 for beneficiary designation, transfer, and assignment.

The broader lesson: verify any Texas-specific number against a Texas source. Decks and videos written for Florida or California use different day-counts, and those wrong numbers are exactly what the distractors are built from.

The state section rewards a different technique than the rest of the exam. The general-knowledge half is conceptual — you can reason your way to an answer. The Texas half is recall: you either know that the replacement right-of-return is 30 days, or you do not.

1. Give it its own study block. Do not fold it into general review. Thirty questions justify at least two or three dedicated sessions.
2. Weight your time by the table above. Fourteen questions come from the common block — licensing, CE, unfair trade practices. Start there, not with HMOs.
3. Drill the number pairs. 10 vs 30 days, 2 years, 24 hours of CE, $25. Write them down from memory until you stop hesitating.
4. Use audio for this specifically. Statute rules are verbal and repetitive — exactly what repeated listening handles well, and exactly what rereading handles badly.
5. Test yourself with Texas-written questions. Generic national question banks under-serve this section by design.

LanePrep's Texas L&H course puts this material in Chapters 7 and 8 — one chapter for the rules common to life and health, one for the life- and health-specific statutes — with the same citations used above. Try 25 free practice questions including Texas-statute items, or listen to Chapter 1 free to see whether audio-first study fits how you learn.

Statute citations in this guide come from the Texas Department of Insurance examination content outlines published by Pearson VUE (versions effective December 1, 2025 and September 1, 2026), read August 2026. Statutes change — TDI's agent licensing pages and the Texas statutes site are the authority.