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Life and Health Insurance Producer Exam

Annuities (TX): practice questions

Our Life & Health Insurance bank has 8 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Texas

What is the typical first-year surrender charge on a Texas annuity, according to TDI?

  1. About 50%, for life
  2. Nothing
  3. About 10%, dropping each year until the surrender period ends
  4. About 1%, rising each year
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C. About 10%, dropping each year until the surrender period ends — Free withdrawals of about 10% a year are typical.

Question 2 · Texas

How many hours of annuity-specific CE must a certified Texas resident agent complete each license term?

  1. 24 hours
  2. 1 hour
  3. 8 hours
  4. None
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C. 8 hours — The certification course counts as 4 annuity CE hours in the period it's taken.

Question 3 · Texas

What training must a resident Texas agent complete before selling annuities?

  1. A 4-hour Annuity Best Interest course from an approved provider
  2. A 1-hour online video
  3. A 40-hour securities course
  4. No extra training
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A. A 4-hour Annuity Best Interest course from an approved provider — This applies to annuities sold on or after 1 January 2022.

Question 4 · Texas

What standard must a Texas agent meet when recommending an annuity?

  1. Act in the consumer's best interest at the time of the recommendation
  2. Recommend whatever the insurer is promoting
  3. Follow the consumer's instructions exactly, without any review of their needs
  4. Recommend the product with the highest commission
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A. Act in the consumer's best interest at the time of the recommendation — This came from HB 1777.

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