Life Products
15%of exam
Life Provisions
15%of exam
Life Underwriting
12%of exam
Life UnderwritingApplicationsInsurable InterestRisk ClassesDelivery
Life Concepts
8%of exam
RetirementAnnuitiesTaxation1035 ExchangeSuitability
Health Products
16%of exam
Health Provisions
15%of exam
Health Concepts
11%of exam
Social InsuranceField UnderwritingManaged CareGroup PlansFederal Rules
TX Common Rules
47%of exam
LicensingTDIUnfair PracticesCEAppointments
TX Life Rules
20%of exam
Texas LifeReplacementFree LookGuarantyLife Settlements
TX Health Rules
23%of exam
Texas HealthMedicare SupplementLTCNewbornsSmall Employer
TX HMO Rules
10%of exam
HMOEvidence CoverageGrievanceNetworkEmergency Care
Quick Facts
- Exam
- InsTX-LAH05
- License
- General Lines LAH
- Time
- 150 minutes
- Total
- 145 questions
- Scored
- 130 questions
- Pretest
- 15 questions
- Split
- 100 general + 30 TX
- Pass
- 70 scaled
- Provider
- Pearson VUE / TDI
Term vs Whole
Term
- Temporary
- No cash value
- Lower premium
Whole
- Permanent
- Cash value
- Fixed premium
Temporary vs permanent
Life Product Picker
- Temporary need→Term(Lowest premium)
- Mortgage declines→Decreasing term(Falling face)
- Lifetime guarantee→Whole life(Cash value)
- Flexible premium→Universal life(Adjustable)
- Market risk okay→Variable life(Separate account)
- Two lives→Survivorship(Second death)
Life Products
- Term
- Temporary protection
- Level term
- Level face
- Decreasing term
- Declining face
- Whole life
- Permanent fixed
- Limited pay
- Short premium period
- Universal life
- Flexible premium
- Variable life
- Securities risk
- VUL
- Flexible + separate
Whole vs Universal
Whole
- Fixed premium
- Guaranteed values
- Rigid design
Universal
- Flexible premium
- Adjustable face
- Interest sensitive
Fixed vs flexible
Owner vs Beneficiary
Owner
- Controls policy
- Changes rights
- Pays premium
Beneficiary
- Receives proceeds
- No control
- Primary/contingent
Control vs receive
Policy Roles
- Applicant
- Requests policy
- Insured
- Covered life
- Owner
- Controls rights
- Beneficiary
- Receives proceeds
- Primary
- First paid
- Contingent
- Backup paid
- Revocable
- Change allowed
- Irrevocable
- Consent required
Life Provisions
- Grace period
- Late-pay window
- Free look
- Refund review
- Incontestability
- Challenge limit
- Suicide
- Early exclusion
- Reinstatement
- Restore lapse
- Assignment
- Transfer rights
- Policy loan
- Borrow cash
- Spendthrift
- Creditor protection
Riders + Options
- Waiver
- Disability premium waiver
- ADB
- Accidental death extra
- GIR
- Future purchase
- Accelerated
- Early death benefit
- Cash surrender
- Take cash
- Reduced paid-up
- Smaller permanent
- Extended term
- Same face temporary
- Settlement
- Proceeds payout
Contract Traits
CUAA: conditional, unilateral, adhesion, aleatory.
Conditional dutiesOne promiseInsurer draftedUnequal exchange
Underwriting
- Application
- Offer evidence
- Binder
- Temporary coverage
- Receipt
- Conditional coverage
- MIB
- Fraud database
- Inspection
- Consumer report
- Preferred
- Best risk
- Standard
- Average risk
- Substandard
- Extra risk
Fixed vs Variable
Fixed
- Guarantee
- General account
- Insurer risk
Variable
- Separate account
- Owner risk
- Securities license
Guarantee vs market
Annuity Picker
- Income starts now→Immediate(Annuitize)
- Income later→Deferred(Accumulate)
- Guarantee wanted→Fixed(General account)
- Market participation→Variable(Securities)
- Index formula→Indexed(Caps/floors)
- Tax-free swap→1035(Like-kind)
Annuities + Tax
- Annuity
- Longevity income
- Immediate
- Pays soon
- Deferred
- Pays later
- Fixed
- Guaranteed crediting
- Variable
- Separate accounts
- Indexed
- Index formula
- 1035
- Tax-free exchange
- LIFO
- Gain first
Health Plan Picker
- Provider freedom→PPO(Network discount)
- Gatekeeper model→HMO(PCP referral)
- Network only→EPO(No outside)
- Lost wages→Disability(Income benefit)
- Custodial care→LTC(ADL trigger)
- Medicare gaps→Medigap(Supplement)
Health Products
- Medical expense
- Care costs
- Major medical
- Broad coverage
- Disability income
- Lost earnings
- LTC
- Custodial care
- Dental
- Oral care
- Vision
- Eye care
- Medicare
- Federal seniors
- Medigap
- Medicare gaps
Claims Order
Notice, forms, proof, payment.
Notice firstForms nextProof followsPayment last
Deductible vs Coinsurance
Deductible
- First dollars
- Annual amount
- Before sharing
Coinsurance
- Percentage share
- After deductible
- Until cap
Before vs after
Health Costs
- Deductible
- Before plan pays
- Coinsurance
- Shared percentage
- Copay
- Fixed visit cost
- Stop-loss
- OOP cap
- Exclusion
- Not covered
- Elimination
- Waiting period
- Benefit period
- Payment duration
- Coordination
- Avoids duplication
Health Provisions
- Notice
- Tell insurer
- Claim forms
- Insurer sends
- Proof loss
- Claim evidence
- Time payment
- Claims paid
- Renewable
- Continuation rights
- Cancelable
- Insurer may stop
- Guaranteed
- Must renew
- Noncancelable
- Premium locked
Medicare ABCD
A hospital, B medical, C Advantage, D drugs.
A: hospitalB: doctorsC: privateD: drugs
HMO vs PPO
HMO
- PCP gatekeeper
- Network focus
- Referral likely
PPO
- More choice
- Out-network possible
- Higher cost
Gatekeeper vs choice
Exam Split
General 100, Texas 30, pretest 15.
100 general30 Texas15 pretest70 pass
Replacement vs Twisting
Replacement
- Policy swap
- Can be legal
- Disclosure required
Twisting
- Misleading swap
- Illegal practice
- False comparison
Disclosure vs deception
TX Compliance Picker
- License passed→Apply(12 months)
- Insurer uses agent→Appointment(Required)
- Renew license→CE(24 hours)
- Existing policy swap→Replacement(Disclose)
- Client funds held→Fiduciary(No commingling)
- Insurer insolvent→Guaranty(Limits apply)
Exam Map
- LAH05
- Combined license
- General
- 100 scored
- Texas
- 30 scored
- Pretest
- Unscored items
- General pretest
- 10 items
- Texas pretest
- 5 items
- Pass mark
- 70 scaled
- Apply window
- 12 months
Rebate vs Commission
Rebate
- Client inducement
- Not in policy
- Illegal gift
Commission
- Producer pay
- Filed arrangement
- Not client gift
Gift vs compensation
TX Licensing
- TDI
- Insurance regulator
- Commissioner
- Governor appointed
- Minimum age
- 18 years
- Fingerprinting
- Background check
- Application
- Within 12 months
- Appointment
- Insurer authorization
- CE
- 24 hours
- Ethics CE
- 2 hours
TX Trade Practices
- Misrepresentation
- False policy facts
- Twisting
- Misleading replacement
- Rebating
- Illegal inducement
- Defamation
- False insurer attack
- Boycott
- Coercive restraint
- False ad
- Misleading promotion
- Commingling
- Mixed client funds
- Fiduciary
- Premium trust duty
TX Guaranty
Life 300, cash 100, annuity 250, health 500.
Life: 300KCash: 100KAnnuity: 250KHealth: 500K
TX Life Rules
- Life free look
- Refund right
- Replacement
- Existing policy swap
- Buyer's guide
- Required disclosure
- Illustration
- Projected values
- Life settlement
- Third-party sale
- Group conversion
- 31 days
- Guaranty life
- $300K death
- Guaranty cash
- $100K value
TX Health Rules
- Guaranty health
- $500K benefits
- Guaranty annuity
- $250K value
- Med Supp
- Standardized plans
- Open enrollment
- Guaranteed access
- LTC
- ADL triggers
- Newborn
- Automatic coverage
- CHIP
- Children coverage
- Small employer
- 1-50 employees
TX HMO Rules
- HMO evidence
- Coverage document
- Provider network
- Contracted care
- PCP
- Primary gatekeeper
- Referral
- Specialist access
- Emergency
- Prudent layperson
- Grievance
- Complaint process
- Utilization
- Medical necessity
- Service area
- HMO geography
Common Traps
Question counts
145 total ≠ 130 scored
General vs Texas
General is 100 ≠ Texas is 30
Pretest vs scored
Pretest unscored ≠ Scored affects pass
Owner vs insured
Owner controls ≠ Insured is life
Replacement vs twisting
Replacement disclosed ≠ Twisting misleads
Rebate vs commission
Rebate induces ≠ Commission compensates
HMO vs PPO
HMO gatekeeper ≠ PPO flexibility
Guaranty advertising
Limits protect ≠ Cannot sell with it
Last Minute
- 1.Exam: 145 total
- 2.Scored: 130 questions
- 3.General: 100 scored
- 4.Texas: 30 scored
- 5.Pass: 70 scaled
- 6.Apply within 12 months
- 7.TDI regulates agents
- 8.Commissioner is appointed
- 9.CE: 24 hours
- 10.Ethics CE: 2 hours
- 11.Replacement needs disclosure
- 12.Guaranty: never a pitch
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