Pearson vue Texas life and health insurance test questions
1. Who is obligated to make sure all questions are an- The Agent
swered and all necessary signatures are collected on
the application?
2. An underwriter is reviewing an applicant with an ex- Attending physician's
tensive medical history. Which of the following would statement
give the underwriter a better understanding of how
the applicant has been treated for various illnesses?
3. Which of the following would NOT be eligible for cov- The owner of the shop
erage under key person?
4. With Adjustable Life, the owner can change all of the The insured
following EXCEPT
5. Which of the following is provided by skilled medical Intermediate care
personnel to those who need occasional medical as-
sistance or rehabilitative care?
6. Partial disability usually pays what percentage of the 50%
total disability benefit?
7. Which of the following long-term care benefits would D. Adult day care
provide coverage for care for functionally impaired
adults on a less than 24-hour basis?
A. Residential care
B. Assisted living
C. Home health care
D. Adult day care
8. An insured's long-tern care policy is scheduled to B. $120 a day
pay fixed amount of coverage of $120 per day. The
long-term care facility only charged $100 per day. How
, Pearson vue Texas life and health insurance test questions
much will the insurance company pay?
A. 20% of the total cost
B. $120 a day
C. $100 a day
D. 80% of the total cost
9. In comparison to a policy that uses the accidental C. Broader in general
means definition, a policy that uses the accidental
bodily injury definition would provide coverage that is
A. More limited in duration
B. Broader in duration
C. Broder in general
D. More limited in general
10. An individual has been diagnosed with Alzheimer's B. B. A portion of the
disease. He is insured under a life insurance policy benefits up to a limit is
with the accelerated benefits rider. Which of the fol- tax-free; the rest is taxable
lowing is true regarding taxation of the accelerated income
benefits?
A. The entire living benefits is considered taxable in-
come
B. A portion of the benefits up to a limit is tax-free; the
rest is taxable income
C. Principle is tax free, but interest is taxed
D. The entire benefits will be received tax free
11. All of the following are true of an annuity owner EX- C. The owner must be the
CEPT party to receive benefits
A. The owner has the right to name the beneficiary
B. The owner is the party who may surrender the
annuity
, Pearson vue Texas life and health insurance test questions
C. The owner must be the party to receive benefits
D. The owner pays the premiums on the annuity
12. How is emergency care covered for a member of an B. A member of an HMO
HMO? can receive care in or out
A. An HMO emergency specialist will cover the patient of the HMO service area,
B. A member of an HMO can receive care in or out but care is preferred in the
of the HMO service area, but care is preferred in the service area
service area
C. A member of an HMO may receive care at any
emergency facility, at the same cost as if in his or her
own service area
D. HMOs have salaried member physicians, but they
do not cover emergency care
13. Death benefits payable to a beneficiary under a life D. Not subject to income
insurance policy are generally taxation by the federal
A. Subject to income taxation by the federal govern- government
ment
B. Exempt from income taxation if under $10,000
C. Exempt from income taxation if over $10,000
D. Not subject to income taxation by the federal gov-
ernment
14. Which of the following best describes the aleatory D. Exchange of unequal
nature of an insurance contract? values
A. Only one of the parties being legally bound by the
contract
B. Ambiguities are interpreted in favor of the insured
C. Policies are submitted to the insurer on a
take-it-or-leave-it basis
D. Exchange of unequal values
, Pearson vue Texas life and health insurance test questions
15. Which of the following is considered a presumptive A. loss of two limbs
disability under a disability income policy
A. Loss of two limbs
B. Loss of an eye
C. Loss of hearing in one ear
D. Loss of one hand or foot
16. An insured purchased a noncancelable health insur- C. The insured is an ac-
ance policy 1 year ago. Which of the following cir- cident and incurs a large
cumstances would NOT be a reason for the insurance claim
company to cancel the policy?
A. The insured reaches the maximum age limit speci-
fied in the policy
B. Within two years of the application, the insurer
discovers a misrepresentation
C. The insured is an accident and incurs a large claim
D. The insured does not pay the premium
17. When the insured selects the extended term nonfor- B. Equal to the original
feiture option, the cash value will be used to purchase policy for as long as the
term insurance with what face amount? cash values will purchase
A. The same as the original policy minus the cash
value
B. Equal to the original policy for as long as the cash
values will purchase
C. In lesser amounts for the remaining policy term of
age 100
D. Equal to the cash value surrendered from the policy
18. *What is the purpose of settlement options? D. Determines how the
A. They are guarantees built into the policy death benefit will be paid
B. They guarantee a return of excess premiums to the beneficiary
1. Who is obligated to make sure all questions are an- The Agent
swered and all necessary signatures are collected on
the application?
2. An underwriter is reviewing an applicant with an ex- Attending physician's
tensive medical history. Which of the following would statement
give the underwriter a better understanding of how
the applicant has been treated for various illnesses?
3. Which of the following would NOT be eligible for cov- The owner of the shop
erage under key person?
4. With Adjustable Life, the owner can change all of the The insured
following EXCEPT
5. Which of the following is provided by skilled medical Intermediate care
personnel to those who need occasional medical as-
sistance or rehabilitative care?
6. Partial disability usually pays what percentage of the 50%
total disability benefit?
7. Which of the following long-term care benefits would D. Adult day care
provide coverage for care for functionally impaired
adults on a less than 24-hour basis?
A. Residential care
B. Assisted living
C. Home health care
D. Adult day care
8. An insured's long-tern care policy is scheduled to B. $120 a day
pay fixed amount of coverage of $120 per day. The
long-term care facility only charged $100 per day. How
, Pearson vue Texas life and health insurance test questions
much will the insurance company pay?
A. 20% of the total cost
B. $120 a day
C. $100 a day
D. 80% of the total cost
9. In comparison to a policy that uses the accidental C. Broader in general
means definition, a policy that uses the accidental
bodily injury definition would provide coverage that is
A. More limited in duration
B. Broader in duration
C. Broder in general
D. More limited in general
10. An individual has been diagnosed with Alzheimer's B. B. A portion of the
disease. He is insured under a life insurance policy benefits up to a limit is
with the accelerated benefits rider. Which of the fol- tax-free; the rest is taxable
lowing is true regarding taxation of the accelerated income
benefits?
A. The entire living benefits is considered taxable in-
come
B. A portion of the benefits up to a limit is tax-free; the
rest is taxable income
C. Principle is tax free, but interest is taxed
D. The entire benefits will be received tax free
11. All of the following are true of an annuity owner EX- C. The owner must be the
CEPT party to receive benefits
A. The owner has the right to name the beneficiary
B. The owner is the party who may surrender the
annuity
, Pearson vue Texas life and health insurance test questions
C. The owner must be the party to receive benefits
D. The owner pays the premiums on the annuity
12. How is emergency care covered for a member of an B. A member of an HMO
HMO? can receive care in or out
A. An HMO emergency specialist will cover the patient of the HMO service area,
B. A member of an HMO can receive care in or out but care is preferred in the
of the HMO service area, but care is preferred in the service area
service area
C. A member of an HMO may receive care at any
emergency facility, at the same cost as if in his or her
own service area
D. HMOs have salaried member physicians, but they
do not cover emergency care
13. Death benefits payable to a beneficiary under a life D. Not subject to income
insurance policy are generally taxation by the federal
A. Subject to income taxation by the federal govern- government
ment
B. Exempt from income taxation if under $10,000
C. Exempt from income taxation if over $10,000
D. Not subject to income taxation by the federal gov-
ernment
14. Which of the following best describes the aleatory D. Exchange of unequal
nature of an insurance contract? values
A. Only one of the parties being legally bound by the
contract
B. Ambiguities are interpreted in favor of the insured
C. Policies are submitted to the insurer on a
take-it-or-leave-it basis
D. Exchange of unequal values
, Pearson vue Texas life and health insurance test questions
15. Which of the following is considered a presumptive A. loss of two limbs
disability under a disability income policy
A. Loss of two limbs
B. Loss of an eye
C. Loss of hearing in one ear
D. Loss of one hand or foot
16. An insured purchased a noncancelable health insur- C. The insured is an ac-
ance policy 1 year ago. Which of the following cir- cident and incurs a large
cumstances would NOT be a reason for the insurance claim
company to cancel the policy?
A. The insured reaches the maximum age limit speci-
fied in the policy
B. Within two years of the application, the insurer
discovers a misrepresentation
C. The insured is an accident and incurs a large claim
D. The insured does not pay the premium
17. When the insured selects the extended term nonfor- B. Equal to the original
feiture option, the cash value will be used to purchase policy for as long as the
term insurance with what face amount? cash values will purchase
A. The same as the original policy minus the cash
value
B. Equal to the original policy for as long as the cash
values will purchase
C. In lesser amounts for the remaining policy term of
age 100
D. Equal to the cash value surrendered from the policy
18. *What is the purpose of settlement options? D. Determines how the
A. They are guarantees built into the policy death benefit will be paid
B. They guarantee a return of excess premiums to the beneficiary
