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. P wants to name her husband as the beneficiary of her life policy. However,
she wishes to retain all of the rights of ownership. P should have her husband
named as the:
a: irrevocable beneficiary
b: revocable beneficiary
c: secondary beneficiary
Answer: B
2. A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an:
A. indemnity contract
B. investment contract
C. endowment
D. annuity
Answer: D
,3. An insurance producer takes an application for a life insurance policy
but does not collect the initial premium. On delivery of the policy to the
proposed insured, the producer must collect the initial premium and which
of the following?
A. A copy of the MIB report
B. The insured's signed statement of continued good health
C. A copy of the conditional receipt
D. A copy of the temporary insurance agreement that covered the period
between the application date and the delivery date.
Answer: B
4. An employer can deduct premium payments as an ordinary business ex-
pense 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
Answer: B
5. 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
Answer: D
6. 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
Answer: A
7. Which of the following statements is CORRECT about Group Life conver-
sion 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 em-
ployee 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.
Answer: B
, 8. 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
Answer: A
9. 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
D. pay all past-due premiums
Answer: B
10. Which of the following statements about a Renewable Term policy is COR-
RECT?
A. It is renewable at the option of the insurer.
B. It is renewable at the option of the insured.
C. It is renewable at the option of the insurer, with proof of insurability.
D. It is renewable at the option of the insured, with proof of insurability.
Answer: B
Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 150 multichoice Questions with Answers
1. P wants to name her husband as the beneficiary of her life policy. However,
she wishes to retain all of the rights of ownership. P should have her husband
named as the:
a: irrevocable beneficiary
b: revocable beneficiary
c: secondary beneficiary
Answer: B
2. A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an:
A. indemnity contract
B. investment contract
C. endowment
D. annuity
Answer: D
,3. An insurance producer takes an application for a life insurance policy
but does not collect the initial premium. On delivery of the policy to the
proposed insured, the producer must collect the initial premium and which
of the following?
A. A copy of the MIB report
B. The insured's signed statement of continued good health
C. A copy of the conditional receipt
D. A copy of the temporary insurance agreement that covered the period
between the application date and the delivery date.
Answer: B
4. An employer can deduct premium payments as an ordinary business ex-
pense 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
Answer: B
5. 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
Answer: D
6. 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
Answer: A
7. Which of the following statements is CORRECT about Group Life conver-
sion 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 em-
ployee 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.
Answer: B
, 8. 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
Answer: A
9. 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
D. pay all past-due premiums
Answer: B
10. Which of the following statements about a Renewable Term policy is COR-
RECT?
A. It is renewable at the option of the insurer.
B. It is renewable at the option of the insured.
C. It is renewable at the option of the insurer, with proof of insurability.
D. It is renewable at the option of the insured, with proof of insurability.
Answer: B
