Pearson Vue Texas life and health
insurance test (Latest
Updates) MULTIPLE Questions & Answers
100% Correct {Grade A}
An employer can deduct premium payments as an ordinary business expense for
which of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary - correct answer B
A producer takes applications from identical twins who want to buy the same type of
policy in the same amount. The insurer issues the policies as applied for, but charges a
25 percent higher premium for one of the policies. The difference in premiums is
probably due to which of the following factors?
A.Incontestability
B.Insurable interest
C.Consideration
D.Risk classification - correct answer D
,In the event of an insured's death, which of the following provides an income for the
family during a designated period of time followed by a lump sum death benefit?
A.Family Income rider
B.Survivorship Life policy
C.Joint Life policy
D.Modified Life policy - correct answer A
Which of the following statements is CORRECT about Group Life conversion privileges?
A.Under the COBRA law, a departing employee may elect to remain a member of the
Group Life plan for a limited period of time.
B.Death during the conversion period is covered even if the departing employee chose
not to convert the policy.
C.A departing employee must individually pay the premium if the employee elects to be
covered during the conversion period.
, D.If a departing employee elects to convert a life insurance policy, the insurer must
offer Term insurance as one of the choices. - correct answer B
Which of the following policies is an interest-sensitive form of permanent protection?
A.Universal Life
B.Limited-Pay Life
C.Graded Premium Whole Life
D.Modified Whole Life - correct answer A
Reinstatement of a life insurance policy requires an insured to take all of the following
actions EXCEPT:
A.provide evidence of insurability
B.make collateral assignment to the insurer
C.pay back interest on any outstanding policy loan
insurance test (Latest
Updates) MULTIPLE Questions & Answers
100% Correct {Grade A}
An employer can deduct premium payments as an ordinary business expense for
which of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary - correct answer B
A producer takes applications from identical twins who want to buy the same type of
policy in the same amount. The insurer issues the policies as applied for, but charges a
25 percent higher premium for one of the policies. The difference in premiums is
probably due to which of the following factors?
A.Incontestability
B.Insurable interest
C.Consideration
D.Risk classification - correct answer D
,In the event of an insured's death, which of the following provides an income for the
family during a designated period of time followed by a lump sum death benefit?
A.Family Income rider
B.Survivorship Life policy
C.Joint Life policy
D.Modified Life policy - correct answer A
Which of the following statements is CORRECT about Group Life conversion privileges?
A.Under the COBRA law, a departing employee may elect to remain a member of the
Group Life plan for a limited period of time.
B.Death during the conversion period is covered even if the departing employee chose
not to convert the policy.
C.A departing employee must individually pay the premium if the employee elects to be
covered during the conversion period.
, D.If a departing employee elects to convert a life insurance policy, the insurer must
offer Term insurance as one of the choices. - correct answer B
Which of the following policies is an interest-sensitive form of permanent protection?
A.Universal Life
B.Limited-Pay Life
C.Graded Premium Whole Life
D.Modified Whole Life - correct answer A
Reinstatement of a life insurance policy requires an insured to take all of the following
actions EXCEPT:
A.provide evidence of insurability
B.make collateral assignment to the insurer
C.pay back interest on any outstanding policy loan
