1|Page
PEARSON VUE TEXAS LIFE AND HEALTH INSURANCE TEST QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
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?
,2|Page
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
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
,3|Page
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
, 4|Page
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
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
PEARSON VUE TEXAS LIFE AND HEALTH INSURANCE TEST QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS
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?
,2|Page
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
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
,3|Page
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
, 4|Page
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
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
