Pearson Vue Texas State Life + Health Insurance Exam
Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 150 multichoice Questions with Answers
1. 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
Answer D. Adult day care
2. 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
Answer B. $120 a day
,3. In comparison to a policy that uses the accidental means definition, a policy
that uses the accidental bodily injury definition would provide coverage that
is
A. More limited in duration
B. Broader in duration
C. Broder in general
D. More limited in general
Answer C. Broader in general
4. 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
Answer B. B. A portion of the benefits up to a limit is tax-free; the rest is taxable
income
5. 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
Answer C. The owner must be the party to receive benefits
,6. 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
Answer 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
7. 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
Answer D. Not subject to income taxation by the federal government
8. 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
, Answer D. Exchange of unequal values
9. Which of the following is considered a presumptive disability under a
disability income policy
A. Loss of two limbs
B. Loss of an eye
C. Loss of hearing in one ear
D. Loss of one hand or foot
Answer A. loss of two limbs
10. An insured purchased a noncancelable health insurance policy 1 year
ago. Which of the following circumstances would NOT be a reason for the
insurance company to cancel the policy?
A. The insured reaches the maximum age limit specified in the policy
B. Within two years of the application, the insurer discovers a misrepresenta-
tion
C. The insured is an accident and incurs a large claim
D. The insured does not pay the premium
Answer C. The insured is an accident and incurs a large claim
11. When the insured selects the extended term nonforfeiture option, the cash
value will be used to purchase term insurance with what face amount?
A. The same as the original policy minus the cash value
B. Equal to the original policy for as long as the cash values will purchase
C. In lesser amounts for the remaining policy term of age 100
Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 150 multichoice Questions with Answers
1. 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
Answer D. Adult day care
2. 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
Answer B. $120 a day
,3. In comparison to a policy that uses the accidental means definition, a policy
that uses the accidental bodily injury definition would provide coverage that
is
A. More limited in duration
B. Broader in duration
C. Broder in general
D. More limited in general
Answer C. Broader in general
4. 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
Answer B. B. A portion of the benefits up to a limit is tax-free; the rest is taxable
income
5. 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
Answer C. The owner must be the party to receive benefits
,6. 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
Answer 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
7. 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
Answer D. Not subject to income taxation by the federal government
8. 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
, Answer D. Exchange of unequal values
9. Which of the following is considered a presumptive disability under a
disability income policy
A. Loss of two limbs
B. Loss of an eye
C. Loss of hearing in one ear
D. Loss of one hand or foot
Answer A. loss of two limbs
10. An insured purchased a noncancelable health insurance policy 1 year
ago. Which of the following circumstances would NOT be a reason for the
insurance company to cancel the policy?
A. The insured reaches the maximum age limit specified in the policy
B. Within two years of the application, the insurer discovers a misrepresenta-
tion
C. The insured is an accident and incurs a large claim
D. The insured does not pay the premium
Answer C. The insured is an accident and incurs a large claim
11. When the insured selects the extended term nonforfeiture option, the cash
value will be used to purchase term insurance with what face amount?
A. The same as the original policy minus the cash value
B. Equal to the original policy for as long as the cash values will purchase
C. In lesser amounts for the remaining policy term of age 100
