Pearson Vue Texas State Life + Health Insurance Exam Practice Questions with Verified Answers 100% Guarantee passing score of 90% or higher

Pearson Vue Texas State Life + Health Insurance Exam
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher


Consist of 400+ multichoice Questions with Answers


1. J has a life policy with the Guaranteed Insurability rider. J has just celebrat-
ed their 42nd birthday and realizes that she wants to use her rider and buy
more death benefit. Which of the following will apply to J's request?
A: The insurer will allow J to add more insurance without proving insurability.
B:The insurer will allow J to add more insurance pending a paramedical exam.
C: The insurer will deny J's request to add more insurance.
D: The insurer will allow J to add more coverage pending proof of insurability
and extra premium.
Answer: C The insurer will deny J's request to add more insurance.


2. An insured has a policy with a Waiver of Premium rider. The insured has
suffered an illness that will prevent them for working for two years. When will
their premiums be waived?
A: Immediately
B: After the first nine months of disability
C: After the first six months of disability


,D: Never, premiums cannot be waived because illness is not a disability.
Answer: C After the first six months of disability


3. The clause that defines and describes the scope of coverage and the limits
of indemnification is known as the:
A: Insuring Agreement
B: Incontestable Clause
C: Payor Clause
D: Entire Contract Clause
Answer: A Insuring Agreement


4. D has just paid off his mortgage and has decided that he no longer needs
his life insurance policy which he originally purchased to cover the house
payments should he die. If D explores the possibly of selling his policy while
he is still alive, it is known as:
A: a life settlement
B: an annuity
C: a Viatical settlement
D: STOLI
Answer: A a life settlement


5. Combination/Variation Plans insure
A Groups
B: Two or More lives under one contract
C: Two or more people under separate contracts



,D: are a form of variable life insurance
Answer: B Two or More lives under one contract


6. What is the tax consideration for taking a cash dividend option?
A: The dividend is fully taxable as income
B: The dividend is paid tax free
C: Depending on income bracket of the insured, the dividend may be taxable
D: If the company gets to keep half of the dividend it is take free
Answer: B The dividend
is paid tax free


7. Which of the following is not true regarding a renewable option on a term
policy?
A: The policy must be renewed regardless of insurability.
B: The rates cannot be more than standard rates at renewal.
C: Premiums are based off of attained age rates.
D: A policy can be renewed, however, the insured must convert to a different
policy.
Answer: D A policy can be renewed, however, the insured must convert to a
different policy.


8. Which of the following is considered to be part of the Entire Contract?
A: Declarations Page
B: Buyers Guide
C: Copy of the Application



, D: All of the Above A3 A3 A3




Answer: C Copy of the Application A3 A3 A3 A3 A3




9. Company A has a partnership with Company Z.There is an agreement in A3 A3 A3 A3 A3 A3 A3 3
A A3 A3 A3 A3




A 3 place that if the CEO of either company were to die, the other company would
A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




A 3 receive money to buy out the partnership.This is an example of:
A3 A3 A3 A3 A3 A3 3
A A3 A3 A3 A3




A: Buy/Sell Agreement
A3 A3




A3 B: Crosse Purchase
A3 A3




A3 plan C: Business Entity A3 A3 A3




A3 Plan
D: Key Person A3 A3




Answer: C Business Entity Plan A3 A3 A3 A3




10. All of the following are true regarding the Guaranty Association EXCEPT
A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




A claimant may receive less benefits than what they had from a policy.
A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




B:The Association is comprised of All member insurers
3
A A3 A3 A3 A3 A3 A3 A3




C:The Association is comprised of All member insurers and have a right to
3
A A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




A 3 end membership while still transacting business in IL
A3 A3 A3 A3 A3 A3 A3




D:There is a $250,000 limit on the present value of annuity benefits.
3
A A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




Answer: C The Association is comprised of All member insurers and have a right to end
A3 A
3 A 3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




A3 membership while still transacting business in IL A 3 A3 A3 A3 A3 A3




11. G has a credit life policy and is replacing that with a whole life policy.
A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3 A3




The agent must:
3
A A3 A3




A: formally replace coverage and include all forms to the insured
A3 A3 A3 A3 A3 A3 A3 A3 A3 A3