Pearson Vue Health Insurance Verified Multiple
Choice and Conceptual Actual Emended Exam Questions
With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. A policy is issued without an initial premium. At delivery, the producer
should:
A) Issue a conditional receipt
B) Collect the initial premium
C) Waive the first premium
D) Refuse to deliver the policy
Answer: B) Collect the initial premium
2. True or False: A conditional receipt can be issued without collecting a
premium.
Answer: False
3. When no premium is collected at application, coverage under the policy
begins:
A) On the date of the application
B) On the date of policy issue
C) On the date the first premium is paid and conditions are satisfied
D) Immediately upon delivery of the policy
Answer: C) On the date the first premium is paid and conditions are
satisfied
4. Which document is provided to an applicant as proof of temporary
coverage when a premium is collected?
A) Conditional receipt
B) Binder
C) Entire Contract provision
, D) Free Look notice
Answer: A) Conditional receipt
5. A producer delivering a policy should always:
A) Collect the initial premium if unpaid
B) Issue a binder
C) Backdate the policy
D) Change the coverage if the applicant requests
Answer: A) Collect the initial premium if unpaid
6. Health insurance policies are offered on a "take it or leave it" basis and
referred to as which of the following types of contracts?
A. Aleatory Contracts
B. Valued Contracts
C. Unilateral Contracts
D. Contracts of Adhesion - ANSWER Contracts of Adhesion
7. True or False: A Free Look period begins on the date the policy is delivered.
Answer: True
8. If the initial premium is not collected until delivery, the producer should
also:
Answer: Obtain a signed statement of continued good health
9. A policy issued without a premium is not in force until:
Answer: The premium is collected and the applicant meets all conditions
10.Which type of receipt provides coverage immediately if all underwriting
requirements are met?
Answer: Conditional receipt
,11.True or False: If the applicant’s health changes before the first premium is
paid, the insurer may deny coverage.
Answer: True
11.A noncancellable policy guarantees:
A) Lifetime renewability with level premiums
B) Renewability at the insurer’s option
C) The insurer can cancel only for fraud
D) Automatic renewability without conditions
Answer: A) Lifetime renewability with level premiums
12.Which provision allows the insurer to raise premiums for an entire class, but
not cancel the policy?
A) Noncancellable
B) Optionally Renewable
C) Guaranteed Renewable
D) Conditionally Renewable
Answer: C) Guaranteed Renewable
13.True or False: Optionally Renewable means the insurer can cancel coverage
at the insured’s request only.
Answer: False
14.Under Optionally Renewable provisions, the insurer:
Answer: May choose not to renew at policy anniversary dates
15.A Conditionally Renewable policy guarantees renewal unless:
A) The insured reaches a certain age or condition specified
B) The insurer’s financial status changes
C) The insured files more than 3 claims
D) Premiums exceed a state-set cap
Answer: A) The insured reaches a certain age or condition specified
16.Which type of policy guarantees both renewability and premium rates?
Answer: Noncancellable
, 17.True or False: Under a Guaranteed Renewable policy, premiums may
increase only on a class basis.
Answer: True
18.Which provision is most favorable to the insured?
Answer: Noncancellable
19.A health policy renewable at the insurer’s option only on the policy
anniversary date is:
Answer: Optionally Renewable
20.A Medicare Supplement policy is usually written as:
Answer: Guaranteed Renewable
21.An applicant with a preexisting back injury is issued a disability policy
excluding coverage for back conditions. This is an example of a:
A) Waiver of Premium rider
B) Guaranteed Insurability rider
C) Exclusionary/Impairment rider
D) Disability Income rider
Answer: C) Exclusionary/Impairment rider
22.True or False: Exclusionary riders are used to cover high-risk applicants who
otherwise might be declined.
Answer: True
23.The primary purpose of an Impairment Rider is to:
A) Eliminate coverage for a specific condition
B) Increase the policy’s face value
C) Waive premiums during disability
D) Add accidental death coverage
Answer: A) Eliminate coverage for a specific condition
24.An individual born with a heart murmur is issued a disability policy with an
exclusion for heart conditions. Which rider applies?
Answer: Exclusionary/Impairment rider
Choice and Conceptual Actual Emended Exam Questions
With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. A policy is issued without an initial premium. At delivery, the producer
should:
A) Issue a conditional receipt
B) Collect the initial premium
C) Waive the first premium
D) Refuse to deliver the policy
Answer: B) Collect the initial premium
2. True or False: A conditional receipt can be issued without collecting a
premium.
Answer: False
3. When no premium is collected at application, coverage under the policy
begins:
A) On the date of the application
B) On the date of policy issue
C) On the date the first premium is paid and conditions are satisfied
D) Immediately upon delivery of the policy
Answer: C) On the date the first premium is paid and conditions are
satisfied
4. Which document is provided to an applicant as proof of temporary
coverage when a premium is collected?
A) Conditional receipt
B) Binder
C) Entire Contract provision
, D) Free Look notice
Answer: A) Conditional receipt
5. A producer delivering a policy should always:
A) Collect the initial premium if unpaid
B) Issue a binder
C) Backdate the policy
D) Change the coverage if the applicant requests
Answer: A) Collect the initial premium if unpaid
6. Health insurance policies are offered on a "take it or leave it" basis and
referred to as which of the following types of contracts?
A. Aleatory Contracts
B. Valued Contracts
C. Unilateral Contracts
D. Contracts of Adhesion - ANSWER Contracts of Adhesion
7. True or False: A Free Look period begins on the date the policy is delivered.
Answer: True
8. If the initial premium is not collected until delivery, the producer should
also:
Answer: Obtain a signed statement of continued good health
9. A policy issued without a premium is not in force until:
Answer: The premium is collected and the applicant meets all conditions
10.Which type of receipt provides coverage immediately if all underwriting
requirements are met?
Answer: Conditional receipt
,11.True or False: If the applicant’s health changes before the first premium is
paid, the insurer may deny coverage.
Answer: True
11.A noncancellable policy guarantees:
A) Lifetime renewability with level premiums
B) Renewability at the insurer’s option
C) The insurer can cancel only for fraud
D) Automatic renewability without conditions
Answer: A) Lifetime renewability with level premiums
12.Which provision allows the insurer to raise premiums for an entire class, but
not cancel the policy?
A) Noncancellable
B) Optionally Renewable
C) Guaranteed Renewable
D) Conditionally Renewable
Answer: C) Guaranteed Renewable
13.True or False: Optionally Renewable means the insurer can cancel coverage
at the insured’s request only.
Answer: False
14.Under Optionally Renewable provisions, the insurer:
Answer: May choose not to renew at policy anniversary dates
15.A Conditionally Renewable policy guarantees renewal unless:
A) The insured reaches a certain age or condition specified
B) The insurer’s financial status changes
C) The insured files more than 3 claims
D) Premiums exceed a state-set cap
Answer: A) The insured reaches a certain age or condition specified
16.Which type of policy guarantees both renewability and premium rates?
Answer: Noncancellable
, 17.True or False: Under a Guaranteed Renewable policy, premiums may
increase only on a class basis.
Answer: True
18.Which provision is most favorable to the insured?
Answer: Noncancellable
19.A health policy renewable at the insurer’s option only on the policy
anniversary date is:
Answer: Optionally Renewable
20.A Medicare Supplement policy is usually written as:
Answer: Guaranteed Renewable
21.An applicant with a preexisting back injury is issued a disability policy
excluding coverage for back conditions. This is an example of a:
A) Waiver of Premium rider
B) Guaranteed Insurability rider
C) Exclusionary/Impairment rider
D) Disability Income rider
Answer: C) Exclusionary/Impairment rider
22.True or False: Exclusionary riders are used to cover high-risk applicants who
otherwise might be declined.
Answer: True
23.The primary purpose of an Impairment Rider is to:
A) Eliminate coverage for a specific condition
B) Increase the policy’s face value
C) Waive premiums during disability
D) Add accidental death coverage
Answer: A) Eliminate coverage for a specific condition
24.An individual born with a heart murmur is issued a disability policy with an
exclusion for heart conditions. Which rider applies?
Answer: Exclusionary/Impairment rider
