Pearson Vue Texas Life and Health
Insurance Test Questions and Answers |
Latest Version | 2025/2026 | Correct &
Verified
What is the main purpose of life insurance?
✔✔ To provide financial protection to beneficiaries after the policyholder’s death.
What is insurable interest in life insurance?
✔✔ A legitimate financial or emotional connection to the insured person.
When does an insurance policy become active?
✔✔ When the first premium is paid and the application is approved.
What is the grace period in a life insurance policy?
✔✔ The time allowed to pay a missed premium before the policy lapses.
What does the beneficiary receive upon the death of the insured?
✔✔ The death benefit amount specified in the policy.
1
,What is term life insurance?
✔✔ A life insurance policy that provides coverage for a specific period.
What is whole life insurance?
✔✔ A permanent life policy with fixed premiums and a cash value component.
What is the contestability period in life insurance?
✔✔ The first two years when the insurer can deny a claim due to misrepresentation.
What is the purpose of a health insurance deductible?
✔✔ The amount the insured pays out-of-pocket before coverage begins.
What is a rider in an insurance policy?
✔✔ An optional provision that adds or modifies coverage.
What is an accelerated death benefit?
✔✔ A payout given to the insured before death if diagnosed with a terminal illness.
2
,What is underwriting in life and health insurance?
✔✔ The process of evaluating risk and determining policy terms and premiums.
What is group life insurance?
✔✔ Life insurance offered to members of a group, typically through an employer.
What is a beneficiary?
✔✔ The person or entity designated to receive the death benefit from a life policy.
What is a premium in life insurance?
✔✔ The regular payment made to keep the policy in force.
What is a reinstatement clause?
✔✔ It allows a lapsed policy to be restored under certain conditions.
What does proof of insurability mean?
✔✔ Evidence showing a person qualifies for coverage based on health or risk factors.
3
, What is the purpose of disability income insurance?
✔✔ To provide income if the policyholder becomes unable to work due to disability.
What is a copayment in health insurance?
✔✔ A fixed fee paid by the insured for medical services at the time of care.
What is coinsurance in health insurance?
✔✔ The percentage of costs shared between the insured and the insurer after the deductible is
met.
What is the free-look period in a new insurance policy?
✔✔ The time frame (typically 10 days) to review and cancel a policy for a full refund.
What is the incontestability clause?
✔✔ After two years, the insurer cannot void the policy due to errors or misstatements.
What is the primary function of the Texas Department of Insurance?
4
Insurance Test Questions and Answers |
Latest Version | 2025/2026 | Correct &
Verified
What is the main purpose of life insurance?
✔✔ To provide financial protection to beneficiaries after the policyholder’s death.
What is insurable interest in life insurance?
✔✔ A legitimate financial or emotional connection to the insured person.
When does an insurance policy become active?
✔✔ When the first premium is paid and the application is approved.
What is the grace period in a life insurance policy?
✔✔ The time allowed to pay a missed premium before the policy lapses.
What does the beneficiary receive upon the death of the insured?
✔✔ The death benefit amount specified in the policy.
1
,What is term life insurance?
✔✔ A life insurance policy that provides coverage for a specific period.
What is whole life insurance?
✔✔ A permanent life policy with fixed premiums and a cash value component.
What is the contestability period in life insurance?
✔✔ The first two years when the insurer can deny a claim due to misrepresentation.
What is the purpose of a health insurance deductible?
✔✔ The amount the insured pays out-of-pocket before coverage begins.
What is a rider in an insurance policy?
✔✔ An optional provision that adds or modifies coverage.
What is an accelerated death benefit?
✔✔ A payout given to the insured before death if diagnosed with a terminal illness.
2
,What is underwriting in life and health insurance?
✔✔ The process of evaluating risk and determining policy terms and premiums.
What is group life insurance?
✔✔ Life insurance offered to members of a group, typically through an employer.
What is a beneficiary?
✔✔ The person or entity designated to receive the death benefit from a life policy.
What is a premium in life insurance?
✔✔ The regular payment made to keep the policy in force.
What is a reinstatement clause?
✔✔ It allows a lapsed policy to be restored under certain conditions.
What does proof of insurability mean?
✔✔ Evidence showing a person qualifies for coverage based on health or risk factors.
3
, What is the purpose of disability income insurance?
✔✔ To provide income if the policyholder becomes unable to work due to disability.
What is a copayment in health insurance?
✔✔ A fixed fee paid by the insured for medical services at the time of care.
What is coinsurance in health insurance?
✔✔ The percentage of costs shared between the insured and the insurer after the deductible is
met.
What is the free-look period in a new insurance policy?
✔✔ The time frame (typically 10 days) to review and cancel a policy for a full refund.
What is the incontestability clause?
✔✔ After two years, the insurer cannot void the policy due to errors or misstatements.
What is the primary function of the Texas Department of Insurance?
4
