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PEARSON VUE TEXAS LIFE INSURANCE
EXAM 2 2024 (VERSION A & B) WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+ |LATEST UPDATE |
GUARANTEED PASS
Which of the following best describes annually renewable term insurance?
A. Neither the premium nor the death benefit is affected by the insured's age
B. It provides an annually increasing death benefit
C. It is level insurance
D. It requires proof of insurability at each renewable
It is level insurance
When a reduced paid -up nonforfeiture option is chosen, what happens to the face amount of the
policy?
A. It is increased when extra premiums are paid
B. It decreases over the term of the policy
C. It remains the same as the original policy, regardless of any differences in value
D. It is reduced to the amount of what the cash value would buy as a single premium
It is reduced to the amount of what the cash value would buy as a single premium
When is the earliest a policy may go into effect?
A. When the insurer approves the application
B. After the underwriter reviews the policy
C. When the application is signed and a check is given to the agent
D. When the first premium is paid and the policy has been delivered
When the application is signed and a check is given to the agent
Under the uniform required provisions, proof of loss under a health insurance policy normally should be
filed within
A. 60 days of a loss
B. 90 days of a loss
C. 20 days of a loss
D. 3o days of a loss
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90 days of a loss
Social Security disability definition includes all of the following EXCEPT
A. A physical impairment expected to result in death
B. Disability expected to last for at least 6 months
C. The inability to engage in any gainful work
D. Disability resulting from a medically determinable mental impairment
Disability expected to last for at least 6 months
An agent makes a mistake on the application and then corrects his mistakes by physically entering the
necessary information. Who must then initial that charge?
A. Executive officer of the company
B. Insured
C. Agent
D. Applicant
Applicant
The form of life annuity which pays benefits throughout the lifetime of the annuitant and also
guarantees payment for a minimum number of years is called
A. Life income with period certain
B. Life income with refund
C. Joint and survivorship
D. Joint life annuity
Life income with period certain
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
A. Skilled care
B. Custodial care in insured's house
C. Respite care
D. Home health care
Skilled care
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is
65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company
obligated to do?
A. Send the applicant to a doctor for a physical. Nothing can happen until they get the results
B. Offer the supplement policy on a guaranteed issue basis
C. Exclude pre-existing conditions from coverage under the supplement policies
D. Look at the applicant's medical history to decide what premium to charge
Offer the supplement policy on a guaranteed issue basis
A provision found in insurance which prevents the insured from collecting twice for the same loss is
called
A. Consent to settle loss
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B. Right of salvage
C. Appraisal
D. Subrogation
Subrogation
All of the following statement concerning Accidental Death and Dismemberment coverage are correct
EXCEPT
A. Accidental death and dismemberment insurance is considered to be limited coverage
B. Death benefits are paid only if death occurs within 24 hours of an accident
C. Accidental death benefits are paid only if death results from accidental bodily injury as defined in the
policy
D. Dismemberment benefits are paid for certain disabilities that are presumed to be total and
permanent
Death benefits are paid only if death occurs within 24 hours of an accident
Which of the following is an example of liquidity in a life insurance contract?
A. The flexible premium
B. The money in a saving account
B. The cash value available to the policyowner
C. The death benefit paid to the beneficiary
The cash value available to the policyowner
In a survivorship life policy, when does the insurer pay the death benefit?
A. Half at the first death, and half at the second death
B. If the insured survives to age 100
C. Upon the last death
D. Upon the first death
Upon the last death
The coverage provided by a disability income policy that does not pay benefits for losses occurring as
the result of the insured's employment is called
A. Occupational
B. Workers compensation
C. Nonoccupational coverage
D. Unemployment coverage
Nonoccupational coverage
Which of the following terms describes the specified dollar amount beyond which the insured no longer
participates in the sharing of expenses?
A. First-dollar coverage
B. Corridor deductible
C. Stop-loss limit
D. Probationary limit
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Stop-loss limit
Which of the following would qualify as a competent party in an insurance contract?
A. The applicant is under the influence of a mind-impairing medication at the time of application
B. The applicant has a prior felony conviction
C. The applicant is intoxicated at the time of application
D. The applicant is a 12-year-old student
The applicant has a prior felony conviction
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor
Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
A. The premiums will become tax deductible until the insured's 18th birthday
B. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy
will not be affected
C. The insured will have to pay premiums for 6 months. If at the end of this period the father is still
disabled, the insured will be refunded the premiums
D. The insured's premiums will be waived until she is 21
The insured's premiums will be waived until she is 21
An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date?
A. The date of application
B. The date of medical exam
C. The date of policy delivery
D. The date of issue
The date of medical exam
Which of the following is an example of a limited-pay life policy?
A. Level Term Life
B. Straight life
C. Life Paid-up at age 65
D. Renewable term to age 70
Life Paid-up at age 65
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the
proceeds annually to his spouse, but that the principle will be paid to their children when they reach a
certain age. Which settlement option should the policyowner choose?
A. Interest only option
B. Life income with period certain
C. Joint and survivor
D. Fixed amount option
Interest only option
PEARSON VUE TEXAS LIFE INSURANCE
EXAM 2 2024 (VERSION A & B) WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+ |LATEST UPDATE |
GUARANTEED PASS
Which of the following best describes annually renewable term insurance?
A. Neither the premium nor the death benefit is affected by the insured's age
B. It provides an annually increasing death benefit
C. It is level insurance
D. It requires proof of insurability at each renewable
It is level insurance
When a reduced paid -up nonforfeiture option is chosen, what happens to the face amount of the
policy?
A. It is increased when extra premiums are paid
B. It decreases over the term of the policy
C. It remains the same as the original policy, regardless of any differences in value
D. It is reduced to the amount of what the cash value would buy as a single premium
It is reduced to the amount of what the cash value would buy as a single premium
When is the earliest a policy may go into effect?
A. When the insurer approves the application
B. After the underwriter reviews the policy
C. When the application is signed and a check is given to the agent
D. When the first premium is paid and the policy has been delivered
When the application is signed and a check is given to the agent
Under the uniform required provisions, proof of loss under a health insurance policy normally should be
filed within
A. 60 days of a loss
B. 90 days of a loss
C. 20 days of a loss
D. 3o days of a loss
,2|Page
90 days of a loss
Social Security disability definition includes all of the following EXCEPT
A. A physical impairment expected to result in death
B. Disability expected to last for at least 6 months
C. The inability to engage in any gainful work
D. Disability resulting from a medically determinable mental impairment
Disability expected to last for at least 6 months
An agent makes a mistake on the application and then corrects his mistakes by physically entering the
necessary information. Who must then initial that charge?
A. Executive officer of the company
B. Insured
C. Agent
D. Applicant
Applicant
The form of life annuity which pays benefits throughout the lifetime of the annuitant and also
guarantees payment for a minimum number of years is called
A. Life income with period certain
B. Life income with refund
C. Joint and survivorship
D. Joint life annuity
Life income with period certain
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
A. Skilled care
B. Custodial care in insured's house
C. Respite care
D. Home health care
Skilled care
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is
65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company
obligated to do?
A. Send the applicant to a doctor for a physical. Nothing can happen until they get the results
B. Offer the supplement policy on a guaranteed issue basis
C. Exclude pre-existing conditions from coverage under the supplement policies
D. Look at the applicant's medical history to decide what premium to charge
Offer the supplement policy on a guaranteed issue basis
A provision found in insurance which prevents the insured from collecting twice for the same loss is
called
A. Consent to settle loss
,3|Page
B. Right of salvage
C. Appraisal
D. Subrogation
Subrogation
All of the following statement concerning Accidental Death and Dismemberment coverage are correct
EXCEPT
A. Accidental death and dismemberment insurance is considered to be limited coverage
B. Death benefits are paid only if death occurs within 24 hours of an accident
C. Accidental death benefits are paid only if death results from accidental bodily injury as defined in the
policy
D. Dismemberment benefits are paid for certain disabilities that are presumed to be total and
permanent
Death benefits are paid only if death occurs within 24 hours of an accident
Which of the following is an example of liquidity in a life insurance contract?
A. The flexible premium
B. The money in a saving account
B. The cash value available to the policyowner
C. The death benefit paid to the beneficiary
The cash value available to the policyowner
In a survivorship life policy, when does the insurer pay the death benefit?
A. Half at the first death, and half at the second death
B. If the insured survives to age 100
C. Upon the last death
D. Upon the first death
Upon the last death
The coverage provided by a disability income policy that does not pay benefits for losses occurring as
the result of the insured's employment is called
A. Occupational
B. Workers compensation
C. Nonoccupational coverage
D. Unemployment coverage
Nonoccupational coverage
Which of the following terms describes the specified dollar amount beyond which the insured no longer
participates in the sharing of expenses?
A. First-dollar coverage
B. Corridor deductible
C. Stop-loss limit
D. Probationary limit
, 4|Page
Stop-loss limit
Which of the following would qualify as a competent party in an insurance contract?
A. The applicant is under the influence of a mind-impairing medication at the time of application
B. The applicant has a prior felony conviction
C. The applicant is intoxicated at the time of application
D. The applicant is a 12-year-old student
The applicant has a prior felony conviction
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor
Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
A. The premiums will become tax deductible until the insured's 18th birthday
B. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy
will not be affected
C. The insured will have to pay premiums for 6 months. If at the end of this period the father is still
disabled, the insured will be refunded the premiums
D. The insured's premiums will be waived until she is 21
The insured's premiums will be waived until she is 21
An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date?
A. The date of application
B. The date of medical exam
C. The date of policy delivery
D. The date of issue
The date of medical exam
Which of the following is an example of a limited-pay life policy?
A. Level Term Life
B. Straight life
C. Life Paid-up at age 65
D. Renewable term to age 70
Life Paid-up at age 65
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the
proceeds annually to his spouse, but that the principle will be paid to their children when they reach a
certain age. Which settlement option should the policyowner choose?
A. Interest only option
B. Life income with period certain
C. Joint and survivor
D. Fixed amount option
Interest only option
