Pearson Vue National Health Insurance
Exam
Pearson Vue National Health Insurance Exam
Newest 2025/2026 Complete Questions And
Correct Detailed Answers
A policyowner names his wife as the primary beneficiary of his Universal Life policy on a
revocable basis. He also names his three children as his secondary beneficiaries and his
estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he
dies, who will receive the policy proceeds?
A. The children
B. The policyowner's estate
C. The primary beneficiary's estate
D. The tertiary beneficiary - Correct Answer :A
The Waiver of Premium provision of a life policy allows the insurer to take which of the
following actions?
A. Waive an insured's premiums if the insured becomes totally disabled before a certain age
B. Waive an insured's premiums if the insured becomes partially disabled for a minimum
time
C. Increase an insured's coverage at an attained age without imposing a premium increase
D. Reduce an insured's premiums if the insured pays them annually instead of monthly -
Correct Answer :A
Under the Social Security Retirement Benefits, all of the following factors will influence how
much a retiring individual will receive as a monthly income benefit EXCEPT the individual's:
A. age
B. "primary insurance amount"
C. "fully insured" or "currently insured" status
A+ TEST BANK 1
, Pearson Vue National Health Insurance
Exam
D. sex - Correct Answer :D
The PRIMARY purpose of an inspection report is to assess an applicant's:
A. credit rating
B. personal characteristics
C. job performance
D. health profile - Correct Answer :B
If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase:
A. additional coverage when the insured reaches retirement age
B. additional coverage whenever the insured changes jobs
C. additional coverage at specified ages
D. coverage on the insured's children within thirty-one days after they are born - Correct
Answer :C
Which of the following statements is NOT correct about representations?
A. They can be a part of the contract.
B. They are true in every respect.
C. They are assumed to be accurate.
D. They influence the insurer's acceptance of the risk. - Correct Answer :B
If an Adjustable Life policyowner makes an additional premium payment, the policy may be
affected in all of the following ways EXCEPT the:
A. premium paying period may decrease
B. value of the Nonforfeiture Options may decrease
C. face amount may increase
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, Pearson Vue National Health Insurance
Exam
D. length of coverage may increase - Correct Answer :B
An insured owns a $10,000 policy with a $4,000 cash value and a 6 percent interest rate. On
January 1, the insured borrows $500 and pays one year's interest in advance. During the
year, the insured does not repay any part of the loan or interest. If the insured dies on
December 31, the beneficiary will be entitled to a MAXIMUM of:
A. $3,500
B. $6,000
C. $9,470
D. $9,500 - Correct Answer :D
Which of the following retirement plans is tax-qualified?
A. Key-person
B. Defined contribution
C. Section 457 deferred compensation
D. Split dollar life insurance - Correct Answer :B
A life insurance application is incomplete if it is missing the signature of which of the
following?
A. A revocable beneficiary
B. The president of the insurer
C. The proposed insured's primary care physician
D. The proposed adult insured - Correct Answer :D
The right to change a beneficiary designation is reserved for the:
A. beneficiary
B. policyowner
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Exam
C. insurer
D. insured - Correct Answer :B
All of the following policies may be examples of third party ownership EXCEPT:
A. Modified Life
B. Group Life
C. Split-dollar Life
D. Key Employee Life - Correct Answer :A
In life insurance, insurable interest must exist at the time the
A. producer delivers a policy
B. proposed insured has a medical examination
C. producer writes an application on a proposed insured
D. beneficiary files a claim - Correct Answer :C
A payor benefit rider provides one of the following benefits:
A. A disability income benefit payable to the payor if the payor becomes disabled
B. A permanent waiver of premium should the payor die
C. A temporary waiver of premium should the payor die until the insured reaches a
predetermined age
D. A double indemnity Death benefit payable to the beneficiary upon the death of the payor
- Correct Answer :C
Two business partners own life insurance on each other. If one partner dies, which of the
following contracts will allow the other partner to buy 100 percent of the business interest?
A. Buy and Sell Agreement
A+ TEST BANK 4
Exam
Pearson Vue National Health Insurance Exam
Newest 2025/2026 Complete Questions And
Correct Detailed Answers
A policyowner names his wife as the primary beneficiary of his Universal Life policy on a
revocable basis. He also names his three children as his secondary beneficiaries and his
estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he
dies, who will receive the policy proceeds?
A. The children
B. The policyowner's estate
C. The primary beneficiary's estate
D. The tertiary beneficiary - Correct Answer :A
The Waiver of Premium provision of a life policy allows the insurer to take which of the
following actions?
A. Waive an insured's premiums if the insured becomes totally disabled before a certain age
B. Waive an insured's premiums if the insured becomes partially disabled for a minimum
time
C. Increase an insured's coverage at an attained age without imposing a premium increase
D. Reduce an insured's premiums if the insured pays them annually instead of monthly -
Correct Answer :A
Under the Social Security Retirement Benefits, all of the following factors will influence how
much a retiring individual will receive as a monthly income benefit EXCEPT the individual's:
A. age
B. "primary insurance amount"
C. "fully insured" or "currently insured" status
A+ TEST BANK 1
, Pearson Vue National Health Insurance
Exam
D. sex - Correct Answer :D
The PRIMARY purpose of an inspection report is to assess an applicant's:
A. credit rating
B. personal characteristics
C. job performance
D. health profile - Correct Answer :B
If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase:
A. additional coverage when the insured reaches retirement age
B. additional coverage whenever the insured changes jobs
C. additional coverage at specified ages
D. coverage on the insured's children within thirty-one days after they are born - Correct
Answer :C
Which of the following statements is NOT correct about representations?
A. They can be a part of the contract.
B. They are true in every respect.
C. They are assumed to be accurate.
D. They influence the insurer's acceptance of the risk. - Correct Answer :B
If an Adjustable Life policyowner makes an additional premium payment, the policy may be
affected in all of the following ways EXCEPT the:
A. premium paying period may decrease
B. value of the Nonforfeiture Options may decrease
C. face amount may increase
A+ TEST BANK 2
, Pearson Vue National Health Insurance
Exam
D. length of coverage may increase - Correct Answer :B
An insured owns a $10,000 policy with a $4,000 cash value and a 6 percent interest rate. On
January 1, the insured borrows $500 and pays one year's interest in advance. During the
year, the insured does not repay any part of the loan or interest. If the insured dies on
December 31, the beneficiary will be entitled to a MAXIMUM of:
A. $3,500
B. $6,000
C. $9,470
D. $9,500 - Correct Answer :D
Which of the following retirement plans is tax-qualified?
A. Key-person
B. Defined contribution
C. Section 457 deferred compensation
D. Split dollar life insurance - Correct Answer :B
A life insurance application is incomplete if it is missing the signature of which of the
following?
A. A revocable beneficiary
B. The president of the insurer
C. The proposed insured's primary care physician
D. The proposed adult insured - Correct Answer :D
The right to change a beneficiary designation is reserved for the:
A. beneficiary
B. policyowner
A+ TEST BANK 3
, Pearson Vue National Health Insurance
Exam
C. insurer
D. insured - Correct Answer :B
All of the following policies may be examples of third party ownership EXCEPT:
A. Modified Life
B. Group Life
C. Split-dollar Life
D. Key Employee Life - Correct Answer :A
In life insurance, insurable interest must exist at the time the
A. producer delivers a policy
B. proposed insured has a medical examination
C. producer writes an application on a proposed insured
D. beneficiary files a claim - Correct Answer :C
A payor benefit rider provides one of the following benefits:
A. A disability income benefit payable to the payor if the payor becomes disabled
B. A permanent waiver of premium should the payor die
C. A temporary waiver of premium should the payor die until the insured reaches a
predetermined age
D. A double indemnity Death benefit payable to the beneficiary upon the death of the payor
- Correct Answer :C
Two business partners own life insurance on each other. If one partner dies, which of the
following contracts will allow the other partner to buy 100 percent of the business interest?
A. Buy and Sell Agreement
A+ TEST BANK 4
