Group Health, Federal Regulation & Texas Statutes — Common to L&H

Correct

The answer is D: Unfair discrimination

Unfair discrimination is treating individuals of the same class and risk differently. Texas Insurance Code §544.002 bars charging a different rate because of race, color, religion or national origin, and no actuarial data can excuse it: the sound-underwriting exception in §544.003(b) covers other listed factors, such as age and gender, but not these. Legitimate factors (age, health, occupation) may justify rate differences; national origin never does.

Source: Insurance Code §544.002 · Insurance Code §544.003(b)

Correct

The answer is B: Twisting usually moves the client to a different insurer; churning, the same one.

As the terms are commonly used, twisting is misrepresentation that induces a client to replace a policy with one from a DIFFERENT insurer, while churning is needless replacement within the SAME insurer, usually to earn new commissions. Texas's statute doesn't draw that line: Insurance Code §541.051(5) bans any misrepresentation that induces a policyholder to let a policy lapse or to surrender it, whichever insurer is involved, and it has no separate harm requirement. Both practices are prohibited when they rest on misrepresentation.

Source: Insurance Code §541.051(5)

Correct

The answer is A: 24 hours total, 3 of which are ethics

Texas requires 24 total CE hours every two years, including at least 3 hours of ethics (Insurance Code §4004.053, §4004.054). H.B. 4030 raised the ethics minimum from 2 hours to 3, effective September 1, 2021, and TDI applies it to licenses expiring on or after September 30, 2022. Watch for distractors that still cite the old 2-hour figure.

Source: Insurance Code §4004.053 · Insurance Code §4004.054

Correct

The answer is B: No course is required for the permanent license; the temporary license requires 40 hours.

Texas requires no pre-licensing education for the permanent general lines license (Insurance Code §4001.105). The optional temporary license is different: the agent or insurer considering the applicant for appointment must give at least 40 hours of training (§4001.160). This permanent-vs-temporary distinction is a common exam trap.

Source: Insurance Code §4001.105 · Insurance Code §4001.160