PEARSON VUE TEXAS STATE LIFE AND HEALTH
INSURANCE EXAM 2026 EXAMINATION TEST
◉ Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the other
partner to buy 100 percent of the business interest?
A. Buy and Sell Agreement
B. Key Employee Life policy
C. Survivorship Life
D. Joint and Several Annuity. Answer: A
◉ If life insurance policy applicant is classified as a substandard risk,
the insurance company will MOST likely:
A. issue the policy with riders
B. charge an extra premium
C. require an annual medical examination
D. lower the rate per thousand charged. Answer: B
◉ When a producer submits an insurance application to the
company, the producer must take all of the following actions
EXCEPT:
A. submit the initial premium, if it was collected
,B. ensure any changes on the application were initialed by the
applicant
C. submit a completed medical information report
D. complete the producer's report. Answer: C
◉ 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 that the insurer issues the policy. Answer: B
◉ A client needs a substantial amount of protection but has limited
financial resources. Which of the following insurance policies would
BEST meet the client's needs?
A. Term Life
B. Adjustable Life
C. Whole Life
D. Limited-Pay Life. Answer: A
◉ A life policy is usually contestable due to material
misrepresentation on the application for a period of:
A. 30 days
B. 6 months
, C. 2 years
D. 5 years. Answer: C
◉ Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy?
A. They are subject to underwriting approval.
B. They do not generate dividends.
C. They are considered Term policies.
D. They are purchased on an attained age basis.. Answer: D
◉ In which of the following contracts is the Death benefit called the
principal sum?
A. Survivorship Annuity
B. Accidental Death and Dismemberment (AD&D)
C. Decreasing Term
D. Joint Life. Answer: B
◉ At which of the following times MUST a life insurance applicant be
informed of their rights under the Fair Credit Reporting Act?
A. During the initial appointment
B. When the insured's application is completed
C. When the policy is delivery
INSURANCE EXAM 2026 EXAMINATION TEST
◉ Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the other
partner to buy 100 percent of the business interest?
A. Buy and Sell Agreement
B. Key Employee Life policy
C. Survivorship Life
D. Joint and Several Annuity. Answer: A
◉ If life insurance policy applicant is classified as a substandard risk,
the insurance company will MOST likely:
A. issue the policy with riders
B. charge an extra premium
C. require an annual medical examination
D. lower the rate per thousand charged. Answer: B
◉ When a producer submits an insurance application to the
company, the producer must take all of the following actions
EXCEPT:
A. submit the initial premium, if it was collected
,B. ensure any changes on the application were initialed by the
applicant
C. submit a completed medical information report
D. complete the producer's report. Answer: C
◉ 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 that the insurer issues the policy. Answer: B
◉ A client needs a substantial amount of protection but has limited
financial resources. Which of the following insurance policies would
BEST meet the client's needs?
A. Term Life
B. Adjustable Life
C. Whole Life
D. Limited-Pay Life. Answer: A
◉ A life policy is usually contestable due to material
misrepresentation on the application for a period of:
A. 30 days
B. 6 months
, C. 2 years
D. 5 years. Answer: C
◉ Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy?
A. They are subject to underwriting approval.
B. They do not generate dividends.
C. They are considered Term policies.
D. They are purchased on an attained age basis.. Answer: D
◉ In which of the following contracts is the Death benefit called the
principal sum?
A. Survivorship Annuity
B. Accidental Death and Dismemberment (AD&D)
C. Decreasing Term
D. Joint Life. Answer: B
◉ At which of the following times MUST a life insurance applicant be
informed of their rights under the Fair Credit Reporting Act?
A. During the initial appointment
B. When the insured's application is completed
C. When the policy is delivery
