Pearson vue Texas life and health insurance Test
Questions with Correct Answers
100% Verified Graded A+
1. Who is obligated to make sure all questions are answered and all necessary signatures
are collected on the application?
Answer: The Agent
2. An underwriter is reviewing an applicant with an extensive medical history. Which of
the following would give the underwriter a better understanding of how the applicant has
been treated for various illnesses?
Answer: Attending physician's statement
3. Which of the following would NOT be eligible for coverage under key per- son?
Answer: The owner of the shop
4. With Adjustable Life, the owner can change all of the following EXCEPT
Answer: The insured
5. Which of the following is provided by skilled medical personnel to those who need
occasional medical assistance or rehabilitative care?
Answer: Intermediate care
,6. Partial disability usually pays what percentage of the total disability bene- fit?
Answer: 50%
7. 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
8. 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
9. 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
10. 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
11. 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
12. 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
13. 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
14. Which of the following best describes the aleatory nature of an insurance contract?
Questions with Correct Answers
100% Verified Graded A+
1. Who is obligated to make sure all questions are answered and all necessary signatures
are collected on the application?
Answer: The Agent
2. An underwriter is reviewing an applicant with an extensive medical history. Which of
the following would give the underwriter a better understanding of how the applicant has
been treated for various illnesses?
Answer: Attending physician's statement
3. Which of the following would NOT be eligible for coverage under key per- son?
Answer: The owner of the shop
4. With Adjustable Life, the owner can change all of the following EXCEPT
Answer: The insured
5. Which of the following is provided by skilled medical personnel to those who need
occasional medical assistance or rehabilitative care?
Answer: Intermediate care
,6. Partial disability usually pays what percentage of the total disability bene- fit?
Answer: 50%
7. 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
8. 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
9. 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
10. 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
11. 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
12. 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
13. 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
14. Which of the following best describes the aleatory nature of an insurance contract?
