PEARSON VUE TEXAS STATE LIFE AND HEALTH INSURANCE EXAM
(LATEST ) TESTED QUESTIONS WITH REVISED CORRECT
ANSWERS, (A+ GUARANTEE)
P wants to name her husband as the beneficiary of her life policy. However, she wishes to retain
all of the rights of ownership. P should have her husband named as the:
a: irrevocable beneficiary
b: revocable beneficiary
c: secondary beneficiary - (Correct Answer) - B
A contract that has as its basic function the systematic liquidation of accumulated assets through
periodic payments is called an:
A. indemnity contract
B. investment contract
C. endowment
D. annuity - (Correct Answer) - D
An insurance producer takes an application for a life insurance policy but does not collect the
initial premium. On delivery of the policy to the proposed insured, the producer must collect the
initial premium and which of the following?
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 copy of the temporary insurance agreement that covered the period between the application
date and the delivery date. - (Correct Answer) - B
An employer can deduct premium payments as an ordinary business expense for which of the
following life coverages?
A. Buy and Sell Agreements
B. Group
C. Key Employee
D. Joint Life, if the business is named as the beneficiary - (Correct Answer) - B
,[Type here]
A producer takes applications from identical twins who want to buy the same type of policy in
the same amount. The insurer issues the policies as applied for, but charges a 25 percent higher
premium for one of the policies. The difference in premiums is probably due to which of the
following factors?
A. Incontestability
B. Insurable interest
C. Consideration
D. Risk classification - (Correct Answer) - D
In the event of an insured's death, which of the following provides an income for the family
during a designated period of time followed by a lump sum death benefit?
A. Family Income rider
B. Survivorship Life policy
C. Joint Life policy
D. Modified Life policy - (Correct Answer) - A
Which of the following statements is CORRECT about Group Life conversion privileges?
A. Under the COBRA law, a departing employee may elect to remain a member of the Group
Life plan for a limited period of time.
B. Death during the conversion period is covered even if the departing employee chose not to
convert the policy.
C. A departing employee must individually pay the premium if the employee elects to be covered
during the conversion period.
D .If a departing employee elects to convert a life insurance policy, the insurer must offer Term
insurance as one of the choices. - (Correct Answer) - B
Which of the following policies is an interest-sensitive form of permanent protection?
A. Universal Life
B. Limited-Pay Life
, [Type here]
C. Graded Premium Whole Life
D. Modified Whole Life - (Correct Answer) - A
Reinstatement of a life insurance policy requires an insured to take all of the following actions
EXCEPT:
A. provide evidence of insurability
B. make collateral assignment to the insurer
C. pay back interest on any outstanding policy loan
D. pay all past-due premiums - (Correct Answer) - B
Which of the following statements about a Renewable Term policy is CORRECT?
A. It is renewable at the option of the insurer.
B. It is renewable at the option of the insured.
C. It is renewable at the option of the insurer, with proof of insurability.
D. It is renewable at the option of the insured, with proof of insurability. - (Correct Answer) - B
If an insured commits suicide after the Suicide clause in the insured's life insurance policy has
expired, the insurer will take which of the following actions?
A. Refuse to pay the Death benefit or refund any premiums
B. Refund only the premiums paid
C. Refund the premiums paid plus interest
D. Pay the Death benefit - (Correct Answer) - D
Which of the following policy provisions provides for continuation of coverage despite
nonpayment of premiums?
A. Entire Contract
B. Ownership clause
C. Nonforfeiture Option
(LATEST ) TESTED QUESTIONS WITH REVISED CORRECT
ANSWERS, (A+ GUARANTEE)
P wants to name her husband as the beneficiary of her life policy. However, she wishes to retain
all of the rights of ownership. P should have her husband named as the:
a: irrevocable beneficiary
b: revocable beneficiary
c: secondary beneficiary - (Correct Answer) - B
A contract that has as its basic function the systematic liquidation of accumulated assets through
periodic payments is called an:
A. indemnity contract
B. investment contract
C. endowment
D. annuity - (Correct Answer) - D
An insurance producer takes an application for a life insurance policy but does not collect the
initial premium. On delivery of the policy to the proposed insured, the producer must collect the
initial premium and which of the following?
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 copy of the temporary insurance agreement that covered the period between the application
date and the delivery date. - (Correct Answer) - B
An employer can deduct premium payments as an ordinary business expense for which of the
following life coverages?
A. Buy and Sell Agreements
B. Group
C. Key Employee
D. Joint Life, if the business is named as the beneficiary - (Correct Answer) - B
,[Type here]
A producer takes applications from identical twins who want to buy the same type of policy in
the same amount. The insurer issues the policies as applied for, but charges a 25 percent higher
premium for one of the policies. The difference in premiums is probably due to which of the
following factors?
A. Incontestability
B. Insurable interest
C. Consideration
D. Risk classification - (Correct Answer) - D
In the event of an insured's death, which of the following provides an income for the family
during a designated period of time followed by a lump sum death benefit?
A. Family Income rider
B. Survivorship Life policy
C. Joint Life policy
D. Modified Life policy - (Correct Answer) - A
Which of the following statements is CORRECT about Group Life conversion privileges?
A. Under the COBRA law, a departing employee may elect to remain a member of the Group
Life plan for a limited period of time.
B. Death during the conversion period is covered even if the departing employee chose not to
convert the policy.
C. A departing employee must individually pay the premium if the employee elects to be covered
during the conversion period.
D .If a departing employee elects to convert a life insurance policy, the insurer must offer Term
insurance as one of the choices. - (Correct Answer) - B
Which of the following policies is an interest-sensitive form of permanent protection?
A. Universal Life
B. Limited-Pay Life
, [Type here]
C. Graded Premium Whole Life
D. Modified Whole Life - (Correct Answer) - A
Reinstatement of a life insurance policy requires an insured to take all of the following actions
EXCEPT:
A. provide evidence of insurability
B. make collateral assignment to the insurer
C. pay back interest on any outstanding policy loan
D. pay all past-due premiums - (Correct Answer) - B
Which of the following statements about a Renewable Term policy is CORRECT?
A. It is renewable at the option of the insurer.
B. It is renewable at the option of the insured.
C. It is renewable at the option of the insurer, with proof of insurability.
D. It is renewable at the option of the insured, with proof of insurability. - (Correct Answer) - B
If an insured commits suicide after the Suicide clause in the insured's life insurance policy has
expired, the insurer will take which of the following actions?
A. Refuse to pay the Death benefit or refund any premiums
B. Refund only the premiums paid
C. Refund the premiums paid plus interest
D. Pay the Death benefit - (Correct Answer) - D
Which of the following policy provisions provides for continuation of coverage despite
nonpayment of premiums?
A. Entire Contract
B. Ownership clause
C. Nonforfeiture Option
