PEARSON VUE TEXAS LIFE AND HEALTH INSURANCE
TEST COMPREHENSIVE EXAM QUESTIONS WITH
DETAILED VERIFIED AND 100% ACCURATE ANSWERS
BRAND NEW EXAM ALREADY GRADED A+
Who is obligated to make sure all questions are answered and all necessary
signatures are collected on the application? Correct Answers The Agent
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? Correct Answers Attending
physician's statement
Which of the following would NOT be eligible for coverage under key person?
Correct Answers The owner of the shop
With Adjustable Life, the owner can change all of the following EXCEPT Correct
Answers The insured
Which of the following is provided by skilled medical personnel to those who
need occasional medical assistance or rehabilitative care? Correct Answers
Intermediate care
Partial disability usually pays what percentage of the total disability benefit?
Correct Answers 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 Correct Answers 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 Correct Answers 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 Correct Answers 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 Correct Answers 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
C. The owner must be the party to receive benefits
D. The owner pays the premiums on the annuity Correct Answers C. The owner
must be the party to receive benefits
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
Correct Answers 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
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 Correct Answers D.
Not subject to income taxation by the federal government
Which of the following best describes the aleatory nature of an insurance contract?
A. Only one of the parties being legally bound by the contract
B. Ambiguities are interpreted in favor of the insured
, C. Policies are submitted to the insurer on a take-it-or-leave-it basis
D. Exchange of unequal values Correct Answers D. Exchange of unequal values
Which of the following is considered a presumptive disability under a disability
income policy
A. Loss of two limbs
B. Loss of an eye
C. Loss of hearing in one ear
D. Loss of one hand or foot Correct Answers A. loss of two limbs
An insured purchased a noncancelable health insurance policy 1 year ago. Which
of the following circumstances would NOT be a reason for the insurance company
to cancel the policy?
A. The insured reaches the maximum age limit specified in the policy
B. Within two years of the application, the insurer discovers a misrepresentation
C. The insured is an accident and incurs a large claim
D. The insured does not pay the premium Correct Answers C. The insured is an
accident and incurs a large claim
When the insured selects the extended term nonforfeiture option, the cash value
will be used to purchase term insurance with what face amount?
A. The same as the original policy minus the cash value
B. Equal to the original policy for as long as the cash values will purchase
C. In lesser amounts for the remaining policy term of age 100
D. Equal to the cash value surrendered from the policy Correct Answers B. Equal
to the original policy for as long as the cash values will purchase
TEST COMPREHENSIVE EXAM QUESTIONS WITH
DETAILED VERIFIED AND 100% ACCURATE ANSWERS
BRAND NEW EXAM ALREADY GRADED A+
Who is obligated to make sure all questions are answered and all necessary
signatures are collected on the application? Correct Answers The Agent
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? Correct Answers Attending
physician's statement
Which of the following would NOT be eligible for coverage under key person?
Correct Answers The owner of the shop
With Adjustable Life, the owner can change all of the following EXCEPT Correct
Answers The insured
Which of the following is provided by skilled medical personnel to those who
need occasional medical assistance or rehabilitative care? Correct Answers
Intermediate care
Partial disability usually pays what percentage of the total disability benefit?
Correct Answers 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 Correct Answers 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 Correct Answers 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 Correct Answers 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 Correct Answers 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
C. The owner must be the party to receive benefits
D. The owner pays the premiums on the annuity Correct Answers C. The owner
must be the party to receive benefits
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
Correct Answers 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
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 Correct Answers D.
Not subject to income taxation by the federal government
Which of the following best describes the aleatory nature of an insurance contract?
A. Only one of the parties being legally bound by the contract
B. Ambiguities are interpreted in favor of the insured
, C. Policies are submitted to the insurer on a take-it-or-leave-it basis
D. Exchange of unequal values Correct Answers D. Exchange of unequal values
Which of the following is considered a presumptive disability under a disability
income policy
A. Loss of two limbs
B. Loss of an eye
C. Loss of hearing in one ear
D. Loss of one hand or foot Correct Answers A. loss of two limbs
An insured purchased a noncancelable health insurance policy 1 year ago. Which
of the following circumstances would NOT be a reason for the insurance company
to cancel the policy?
A. The insured reaches the maximum age limit specified in the policy
B. Within two years of the application, the insurer discovers a misrepresentation
C. The insured is an accident and incurs a large claim
D. The insured does not pay the premium Correct Answers C. The insured is an
accident and incurs a large claim
When the insured selects the extended term nonforfeiture option, the cash value
will be used to purchase term insurance with what face amount?
A. The same as the original policy minus the cash value
B. Equal to the original policy for as long as the cash values will purchase
C. In lesser amounts for the remaining policy term of age 100
D. Equal to the cash value surrendered from the policy Correct Answers B. Equal
to the original policy for as long as the cash values will purchase
