PEARSON VUE TEXAS LIFE AND HEALTH
INSURANCE FINAL TEST PAPER 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
●● 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
●● Which of the following would NOT be eligible for coverage under
key person?
Answer: The owner of the shop
●● With Adjustable Life, the owner can change all of the following
EXCEPT
Answer: The insured
●● Which of the following is provided by skilled medical personnel to
those who need occasional medical assistance or rehabilitative care?
Answer: Intermediate care
,●● Partial disability usually pays what percentage of the total disability
benefit?
Answer: 50%
●● 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
●● 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
, ●● 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
●● 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
●● 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
INSURANCE FINAL TEST PAPER 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED
●● 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
●● Which of the following would NOT be eligible for coverage under
key person?
Answer: The owner of the shop
●● With Adjustable Life, the owner can change all of the following
EXCEPT
Answer: The insured
●● Which of the following is provided by skilled medical personnel to
those who need occasional medical assistance or rehabilitative care?
Answer: Intermediate care
,●● Partial disability usually pays what percentage of the total disability
benefit?
Answer: 50%
●● 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
●● 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
, ●● 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
●● 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
●● 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
