Pearson vue Texas life and health insurance
Pearson vue Texas life and health
insurance test questions and answers 2025
Who is obligated to make sure all questions are answered and all necessary signatures are
collected on the application?
The Agent
An underwriter is reviewing an applicant with an extensive medical history. Which of the
following would give the underwriter a better understanding of how the applicant has been
treated for various illnesses?
Attending physician's statement
Which of the following would NOT be eligible for coverage under key person?
The owner of the shop
With Adjustable Life, the owner can change all of the following EXCEPT
The insured
Which of the following is provided by skilled medical personnel to those who need
occasional medical assistance or rehabilitative care?
Intermediate care
Partial disability usually pays what percentage of the total disability benefit?
50%
Which of the following long-term care benefits would 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
D. Adult day care
An insured's long-tern care policy is scheduled to pay fixed amount of coverage of $120 per
day. The long-term care facility only charged $100 per day. How much will the insurance
company pay?
A. 20% of the total cost
Pearson vue Texas life and health insurance
,Pearson vue Texas life and health insurance
B. $120 a day
C. $100 a day
D. 80% of the total cost
B. $120 a day
In comparison to a policy that uses the accidental 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
C. Broader in general
An individual has been diagnosed with Alzheimer's disease. He is insured under a life
insurance policy with the accelerated benefits rider. Which of the following is true regarding
taxation of the accelerated benefits?
A. The entire living benefits is considered taxable income
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
B. B. A portion of the benefits up to a limit is tax-free; the rest is taxable income
All of the following are true of an annuity owner EXCEPT
A. The owner has the right to name the beneficiary
B. The owner is the party who may surrender the annuity
C. The owner must be the party to receive benefits
D. The owner pays the premiums on the annuity
C. The owner must be the party to receive benefits
How is emergency care covered for a member of an HMO?
A. An HMO emergency specialist will cover the patient
B. A member of an HMO can receive care in or out of the HMO service area, but care is
preferred in the 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
B. A member of an HMO can receive care in or out of the HMO service area, but care is
preferred in the service area
Pearson vue Texas life and health insurance
,Pearson vue Texas life and health insurance
Death benefits payable to a beneficiary under a life insurance policy are generally
A. Subject to income taxation by the federal government
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 government
D. Not subject to income taxation by the federal government
Which of the following best describes the aleatory nature of an insurance contract?
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
D. Exchange of unequal values
Which of the following is considered a presumptive 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
A. loss of two limbs
An insured purchased a noncancelable health insurance policy 1 year ago. Which of the
following circumstances would NOT be a reason for the insurance company to cancel the
policy?
A. The insured reaches the maximum age limit specified 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
C. The insured is an accident and incurs a large claim
When the insured selects the extended term nonforfeiture option, the cash value will be
used to purchase term insurance with what face amount?
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
Pearson vue Texas life and health insurance
, Pearson vue Texas life and health insurance
C. In lesser amounts for the remaining policy term of age 100
D. Equal to the cash value surrendered from the policy
B. Equal to the original policy for as long as the cash values will purchase
*What is the purpose of settlement options?
A. They are guarantees built into the policy
B. They guarantee a return of excess premiums
C. they provide the beneficiary the income he/she cannot outlive
D. Determines how the death benefit will be paid to the beneficiary
D. Determines how the death benefit will be paid to the beneficiary
The premium charged for exercising the guaranteed insurability Rider is based upon the
insured's
A. Assumed age
B. Average age
C. Issue age
D. Attained age
D. Attained age
Which of the following best describes the "first-dollar coverage" principle in basic medical
insurance?
A. The insured must first pay a deductible
B. The insurer covers the first claim on the policy
C. Deductibles and coinsurance are taxed first
D. The insured is not required to pay a deductible
D. The insured is not required to pay a deductible
Which of the following determines the cash value of a variable life policy?
A. The performance of the policy portfolio
B. The company's general account
C. The policy's guarantees
D. The premium mode
D. The premium mode
Pearson vue Texas life and health insurance
Pearson vue Texas life and health
insurance test questions and answers 2025
Who is obligated to make sure all questions are answered and all necessary signatures are
collected on the application?
The Agent
An underwriter is reviewing an applicant with an extensive medical history. Which of the
following would give the underwriter a better understanding of how the applicant has been
treated for various illnesses?
Attending physician's statement
Which of the following would NOT be eligible for coverage under key person?
The owner of the shop
With Adjustable Life, the owner can change all of the following EXCEPT
The insured
Which of the following is provided by skilled medical personnel to those who need
occasional medical assistance or rehabilitative care?
Intermediate care
Partial disability usually pays what percentage of the total disability benefit?
50%
Which of the following long-term care benefits would 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
D. Adult day care
An insured's long-tern care policy is scheduled to pay fixed amount of coverage of $120 per
day. The long-term care facility only charged $100 per day. How much will the insurance
company pay?
A. 20% of the total cost
Pearson vue Texas life and health insurance
,Pearson vue Texas life and health insurance
B. $120 a day
C. $100 a day
D. 80% of the total cost
B. $120 a day
In comparison to a policy that uses the accidental 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
C. Broader in general
An individual has been diagnosed with Alzheimer's disease. He is insured under a life
insurance policy with the accelerated benefits rider. Which of the following is true regarding
taxation of the accelerated benefits?
A. The entire living benefits is considered taxable income
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
B. B. A portion of the benefits up to a limit is tax-free; the rest is taxable income
All of the following are true of an annuity owner EXCEPT
A. The owner has the right to name the beneficiary
B. The owner is the party who may surrender the annuity
C. The owner must be the party to receive benefits
D. The owner pays the premiums on the annuity
C. The owner must be the party to receive benefits
How is emergency care covered for a member of an HMO?
A. An HMO emergency specialist will cover the patient
B. A member of an HMO can receive care in or out of the HMO service area, but care is
preferred in the 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
B. A member of an HMO can receive care in or out of the HMO service area, but care is
preferred in the service area
Pearson vue Texas life and health insurance
,Pearson vue Texas life and health insurance
Death benefits payable to a beneficiary under a life insurance policy are generally
A. Subject to income taxation by the federal government
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 government
D. Not subject to income taxation by the federal government
Which of the following best describes the aleatory nature of an insurance contract?
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
D. Exchange of unequal values
Which of the following is considered a presumptive 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
A. loss of two limbs
An insured purchased a noncancelable health insurance policy 1 year ago. Which of the
following circumstances would NOT be a reason for the insurance company to cancel the
policy?
A. The insured reaches the maximum age limit specified 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
C. The insured is an accident and incurs a large claim
When the insured selects the extended term nonforfeiture option, the cash value will be
used to purchase term insurance with what face amount?
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
Pearson vue Texas life and health insurance
, Pearson vue Texas life and health insurance
C. In lesser amounts for the remaining policy term of age 100
D. Equal to the cash value surrendered from the policy
B. Equal to the original policy for as long as the cash values will purchase
*What is the purpose of settlement options?
A. They are guarantees built into the policy
B. They guarantee a return of excess premiums
C. they provide the beneficiary the income he/she cannot outlive
D. Determines how the death benefit will be paid to the beneficiary
D. Determines how the death benefit will be paid to the beneficiary
The premium charged for exercising the guaranteed insurability Rider is based upon the
insured's
A. Assumed age
B. Average age
C. Issue age
D. Attained age
D. Attained age
Which of the following best describes the "first-dollar coverage" principle in basic medical
insurance?
A. The insured must first pay a deductible
B. The insurer covers the first claim on the policy
C. Deductibles and coinsurance are taxed first
D. The insured is not required to pay a deductible
D. The insured is not required to pay a deductible
Which of the following determines the cash value of a variable life policy?
A. The performance of the policy portfolio
B. The company's general account
C. The policy's guarantees
D. The premium mode
D. The premium mode
Pearson vue Texas life and health insurance
