Texas Life Agent Practice Exam

Which statement about insurance licensing is false?

1. All accounts of a terminated agent must be non-renewed by the insurer

2. Agents may renew their license anytime

3. License must be renewed periodically

4. Agents must complete continuing education requirements

The correct answer is: Agents may renew their license anytime

The correct answer highlights a false statement about insurance licensing. Agents do not have the flexibility to renew their licenses anytime they choose. Instead, they are subject to specific timelines and must renew their licenses before the expiration date. Each state, including Texas, has established guidelines and deadlines for license renewal that agents must follow to maintain active status. The other statements reflect accurate information regarding insurance licensing. For example, the requirement for licenses to be renewed periodically is essential for ensuring that agents remain compliant with current regulations and practices within the insurance industry. Additionally, the completion of continuing education requirements is necessary to ensure that agents stay informed about changes in laws, policies, and best practices, which helps maintain a high standard of service for consumers. Moreover, the stipulation that all accounts of a terminated agent must be non-renewed by the insurer ensures that the insurance company is not held liable for any business conducted by an agent who is no longer authorized to sell insurance.