Pearson Vue Texas life and health
insurance test Questions and Answers |
Latest Version | 2025/2026 | Correct &
Verified
What is the main purpose of health insurance?
✔✔To help cover medical and healthcare-related expenses.
What is insurable interest in a life insurance policy?
✔✔A financial or emotional interest in the continued life of the insured.
When must insurable interest exist in life insurance?
✔✔At the time the policy is issued.
What is the policyowner’s main responsibility in a life insurance contract?
✔✔Payment of premiums.
What is the insured in a life insurance policy?
✔✔The person whose life is covered.
Who receives the death benefit from a life insurance policy?
✔✔The beneficiary.
1
,What type of life insurance provides coverage for a specific time period?
✔✔Term life insurance.
What happens when a term life policy expires?
✔✔Coverage ends unless the policy is renewed or converted.
What type of life insurance builds cash value?
✔✔Permanent life insurance.
What is whole life insurance?
✔✔A permanent policy with guaranteed premiums and cash value.
What is universal life insurance?
✔✔A flexible premium permanent life policy with adjustable benefits.
What does cash value represent in a life insurance policy?
✔✔Savings that accumulate within certain permanent policies.
What is a policy loan?
✔✔Borrowing money from a policy’s cash value.
What happens if a policy loan is not repaid?
2
,✔✔It is deducted from the death benefit.
What is a grace period?
✔✔Extra time allowed to pay premiums without losing coverage.
How long is the typical life insurance grace period in Texas?
✔✔Thirty-one days.
What is a free-look period?
✔✔A time period to review and return a policy for a refund.
What is the purpose of a beneficiary designation?
✔✔To identify who receives policy proceeds.
What is a contingent beneficiary?
✔✔A secondary beneficiary if the primary cannot receive benefits.
What is accidental death benefit coverage?
✔✔Additional payment if death results from an accident.
What is underwriting in life insurance?
✔✔The process of evaluating risk before issuing a policy.
3
, What is a medical exam used for in life insurance underwriting?
✔✔To assess the applicant’s health risk.
What is misrepresentation on an insurance application?
✔✔Providing false or misleading information.
What can misrepresentation lead to?
✔✔Policy rescission or claim denial.
What is the contestability period?
✔✔A time during which the insurer can challenge policy validity.
How long is the contestability period in Texas life insurance?
✔✔Two years.
What does incontestability mean?
✔✔The insurer cannot void the policy after the contestability period.
What is the purpose of a rider?
✔✔To modify or add benefits to a policy.
4
insurance test Questions and Answers |
Latest Version | 2025/2026 | Correct &
Verified
What is the main purpose of health insurance?
✔✔To help cover medical and healthcare-related expenses.
What is insurable interest in a life insurance policy?
✔✔A financial or emotional interest in the continued life of the insured.
When must insurable interest exist in life insurance?
✔✔At the time the policy is issued.
What is the policyowner’s main responsibility in a life insurance contract?
✔✔Payment of premiums.
What is the insured in a life insurance policy?
✔✔The person whose life is covered.
Who receives the death benefit from a life insurance policy?
✔✔The beneficiary.
1
,What type of life insurance provides coverage for a specific time period?
✔✔Term life insurance.
What happens when a term life policy expires?
✔✔Coverage ends unless the policy is renewed or converted.
What type of life insurance builds cash value?
✔✔Permanent life insurance.
What is whole life insurance?
✔✔A permanent policy with guaranteed premiums and cash value.
What is universal life insurance?
✔✔A flexible premium permanent life policy with adjustable benefits.
What does cash value represent in a life insurance policy?
✔✔Savings that accumulate within certain permanent policies.
What is a policy loan?
✔✔Borrowing money from a policy’s cash value.
What happens if a policy loan is not repaid?
2
,✔✔It is deducted from the death benefit.
What is a grace period?
✔✔Extra time allowed to pay premiums without losing coverage.
How long is the typical life insurance grace period in Texas?
✔✔Thirty-one days.
What is a free-look period?
✔✔A time period to review and return a policy for a refund.
What is the purpose of a beneficiary designation?
✔✔To identify who receives policy proceeds.
What is a contingent beneficiary?
✔✔A secondary beneficiary if the primary cannot receive benefits.
What is accidental death benefit coverage?
✔✔Additional payment if death results from an accident.
What is underwriting in life insurance?
✔✔The process of evaluating risk before issuing a policy.
3
, What is a medical exam used for in life insurance underwriting?
✔✔To assess the applicant’s health risk.
What is misrepresentation on an insurance application?
✔✔Providing false or misleading information.
What can misrepresentation lead to?
✔✔Policy rescission or claim denial.
What is the contestability period?
✔✔A time during which the insurer can challenge policy validity.
How long is the contestability period in Texas life insurance?
✔✔Two years.
What does incontestability mean?
✔✔The insurer cannot void the policy after the contestability period.
What is the purpose of a rider?
✔✔To modify or add benefits to a policy.
4
