Pearson VUE Life & Health Insurance
Exam — 2025/2026 Edition | 150
Verified Questions & Correct Answers
Real Exam-Based Questions and Verified Answers | 100% Accuracy | State Licensing
Examination | Graded A+
Introduction
This complete resource provides 150 multiple-choice questions with verified correct
answers from the official Pearson VUE Life & Health Insurance Licensing Exam —
2025/2026 Edition. Content is based on the latest national and state-specific guidelines,
covering essential topics including life insurance policies, annuities, underwriting,
health insurance plans, policy provisions, Medicare/Medicaid, and insurance
regulations. Designed for candidates seeking licensure as life and health insurance producers,
this guide mirrors the exam’s structure (150 questions, 2.5–3 hours) and emphasizes
application-based scenarios. Questions are verified to ensure 100% accuracy, preparing
candidates to pass with confidence and achieve a Graded A+ outcome.
Answer Format
All correct answers are clearly marked in bold and green for efficient review and confident
preparation.
Pearson VUE Life & Health Insurance Practice Test |
2025/2026 Verified 150 Q&A
1. P wants to name her husband as the beneficiary of her life policy but
retain all ownership rights. How should she designate him?
a) Irrevocable beneficiary
b) Revocable beneficiary
c) Secondary beneficiary
d) Tertiary beneficiary
,b) Revocable beneficiary
Rationale: A revocable beneficiary can be changed by the policyowner without consent,
preserving ownership rights.
2. A contract that systematically liquidates accumulated assets through
periodic payments is called:
a) Indemnity contract
b) Investment contract
c) Endowment
d) Annuity
d) Annuity
Rationale: An annuity provides periodic payments, typically for retirement income, by
liquidating accumulated funds.
3. An insurance producer submits a life insurance application without the
initial premium. Upon policy delivery, what must the producer collect?
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 temporary insurance agreement
b) The insured’s signed statement of continued good health
Rationale: Without an initial premium, a statement of good health ensures no adverse changes
since application.
4. In life insurance, the Free Look provision begins on the:
a) Effective date of coverage
b) Policy delivery date
c) Date of application
d) Date the insurer issues the policy
b) Policy delivery date
Rationale: The Free Look period (typically 10–30 days) starts when the policy is delivered,
allowing a refund if returned.
5. A client needs substantial life insurance protection but has limited
resources. Which policy best meets their needs?
a) Whole life
b) Term life
c) Universal life
d) Variable life
b) Term life
Rationale: Term life offers high coverage at low cost, ideal for those with limited budgets
needing protection.
6. Who is obligated to ensure all questions are answered and signatures are
collected on an insurance application?
a) The underwriter
, b) The insurance producer
c) The applicant
d) The insurer
b) The insurance producer
Rationale: The producer ensures the application is complete and accurate before submission.
7. An underwriter reviewing an applicant with a complex medical history
would rely on which document for treatment details?
a) Medical Information Bureau (MIB) report
b) Attending Physician Statement (APS)
c) Conditional receipt
d) Policy summary
b) Attending Physician Statement (APS)
Rationale: The APS provides detailed medical history and treatment information from the
applicant’s doctor.
8. Which of the following would NOT be eligible for coverage under a key
person life insurance policy?
a) Company president
b) Sales manager
c) Part-time receptionist
d) Chief financial officer
c) Part-time receptionist
Rationale: Key person insurance covers individuals critical to business operations, not part-time
or non-essential roles.
9. The incontestability clause in a life insurance policy prevents the insurer
from denying claims after how long?
a) 6 months
b) 1 year
c) 2 years
d) 5 years
c) 2 years
Rationale: After 2 years, the insurer cannot contest the policy except for non-payment of
premiums or fraud (in some states).
10. A health insurance policy’s grace period for premium payments is
typically:
a) 7 days
b) 31 days
c) 60 days
d) 90 days
b) 31 days
Rationale: Most health insurance policies allow a 31-day grace period to pay overdue premiums
without lapse.
Exam — 2025/2026 Edition | 150
Verified Questions & Correct Answers
Real Exam-Based Questions and Verified Answers | 100% Accuracy | State Licensing
Examination | Graded A+
Introduction
This complete resource provides 150 multiple-choice questions with verified correct
answers from the official Pearson VUE Life & Health Insurance Licensing Exam —
2025/2026 Edition. Content is based on the latest national and state-specific guidelines,
covering essential topics including life insurance policies, annuities, underwriting,
health insurance plans, policy provisions, Medicare/Medicaid, and insurance
regulations. Designed for candidates seeking licensure as life and health insurance producers,
this guide mirrors the exam’s structure (150 questions, 2.5–3 hours) and emphasizes
application-based scenarios. Questions are verified to ensure 100% accuracy, preparing
candidates to pass with confidence and achieve a Graded A+ outcome.
Answer Format
All correct answers are clearly marked in bold and green for efficient review and confident
preparation.
Pearson VUE Life & Health Insurance Practice Test |
2025/2026 Verified 150 Q&A
1. P wants to name her husband as the beneficiary of her life policy but
retain all ownership rights. How should she designate him?
a) Irrevocable beneficiary
b) Revocable beneficiary
c) Secondary beneficiary
d) Tertiary beneficiary
,b) Revocable beneficiary
Rationale: A revocable beneficiary can be changed by the policyowner without consent,
preserving ownership rights.
2. A contract that systematically liquidates accumulated assets through
periodic payments is called:
a) Indemnity contract
b) Investment contract
c) Endowment
d) Annuity
d) Annuity
Rationale: An annuity provides periodic payments, typically for retirement income, by
liquidating accumulated funds.
3. An insurance producer submits a life insurance application without the
initial premium. Upon policy delivery, what must the producer collect?
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 temporary insurance agreement
b) The insured’s signed statement of continued good health
Rationale: Without an initial premium, a statement of good health ensures no adverse changes
since application.
4. In life insurance, the Free Look provision begins on the:
a) Effective date of coverage
b) Policy delivery date
c) Date of application
d) Date the insurer issues the policy
b) Policy delivery date
Rationale: The Free Look period (typically 10–30 days) starts when the policy is delivered,
allowing a refund if returned.
5. A client needs substantial life insurance protection but has limited
resources. Which policy best meets their needs?
a) Whole life
b) Term life
c) Universal life
d) Variable life
b) Term life
Rationale: Term life offers high coverage at low cost, ideal for those with limited budgets
needing protection.
6. Who is obligated to ensure all questions are answered and signatures are
collected on an insurance application?
a) The underwriter
, b) The insurance producer
c) The applicant
d) The insurer
b) The insurance producer
Rationale: The producer ensures the application is complete and accurate before submission.
7. An underwriter reviewing an applicant with a complex medical history
would rely on which document for treatment details?
a) Medical Information Bureau (MIB) report
b) Attending Physician Statement (APS)
c) Conditional receipt
d) Policy summary
b) Attending Physician Statement (APS)
Rationale: The APS provides detailed medical history and treatment information from the
applicant’s doctor.
8. Which of the following would NOT be eligible for coverage under a key
person life insurance policy?
a) Company president
b) Sales manager
c) Part-time receptionist
d) Chief financial officer
c) Part-time receptionist
Rationale: Key person insurance covers individuals critical to business operations, not part-time
or non-essential roles.
9. The incontestability clause in a life insurance policy prevents the insurer
from denying claims after how long?
a) 6 months
b) 1 year
c) 2 years
d) 5 years
c) 2 years
Rationale: After 2 years, the insurer cannot contest the policy except for non-payment of
premiums or fraud (in some states).
10. A health insurance policy’s grace period for premium payments is
typically:
a) 7 days
b) 31 days
c) 60 days
d) 90 days
b) 31 days
Rationale: Most health insurance policies allow a 31-day grace period to pay overdue premiums
without lapse.
