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Pearson vue Texas life and health insurance test questions
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Pearson vue Texas life and health insurance test questions
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Name: Score:150 Multiple choice questions
Term 1 of 150
Which of the following is NOT required on an illustration used in the sale of a life insurance
policy?
Underwriting or rating classification upon which the illustration is based
The name of the primary and secondary beneficiaries
Generic name of policy
Name of insurer
Term 2 of 150
Annually renewable term policies provide a level death benefit for a premium that
Decreases annually
Remains Level
Fluctuates
Increases annually
Term 3 of 150
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?
20% of the total cost
$120 a day
$100 a day
80% of the total cost
,Term 4 of 150
Which of the following best defines the "owner" as it pertains to life settlement contracts?
A financial entity that sponsors the transaction
A fiduciary for the contract
The insurance provider
The policyowner of the life insurance policy
Term 5 of 150
Which provision allows the policyholder a period of time, while coverage is in force, to
examine a health insurance policy and determine whether or not to keep it?
Elimination period
Probationary period
Free Look period
Grace period
Term 6 of 150
An applicant who receives a preferred risk classification qualifies for
Higher premiums than a person who receives a sub-standard risk
Higher premiums than a person who receives a standard risk
Lower premiums than a person who receives a standard risk
Dividends payable for lack of claims
Term 7 of 150
Which of the following is true regarding elimination periods and the cost of coverage?
The longer the elimination period, the higher the cost of coverage
Elimination periods have no effect on the cost of coverage
The longer the elimination period, the lower the cost of coverage
The shorter the elimination period, the lower the cost of coverage
,Term 8 of 150
Which of the following best describes the "first-dollar coverage" principle in basic medical
insurance?
The insured must first pay a deductible
The insurer covers the first claim on the policy
Deductibles and coinsurance are taxed first
The insured is not required to pay a deductible
Term 9 of 150
Which of the following is considered a presumptive disability under a disability income policy
Loss of two limbs
Loss of an eye
Loss of hearing in one ear
Loss of one hand or foot
Term 10 of 150
All of the following are true regarding a decreasing term policy EXCEPT
The death benefits $0 at the end of the policy term
The contract pays only in the event of death during the term and there is no cash value
The face amount steadily declines throughout the duration of the contract
The payable premium amount steadily declines throughout the duration of the contract
Term 11 of 150
*What is the purpose of settlement options?
They are guarantees built into the policy
They guarantee a return of excess premiums
they provide the beneficiary the income he/she cannot outlive
Determines how the death benefit will be paid to the beneficiary
, Term 12 of 150
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
When insured purchased a new home, the insured made an absolute assignment of a life
insurance policy to the mortgage company
An insured borrows money from the bank and makes a collateral assignment of a part of
the death benefit to secure the loan
An insured couple purchases a life insurance policy insuring the life of their grandson
A company purchases a life insurance policy on their manager, who is important part of
the operation
Term 13 of 150
The premium charged for exercising the guaranteed insurability Rider is based upon the
insured's
Average age
Issue age
Attained age
Assumed age
Term 14 of 150
The insurers are allowed to disclose the HIV-related test result to all of the following EXCEPT
Another insurer
The insured's doctor
A reinsurer involved in the underwriting process
The Texas Department of Health
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