PEARSON VUE TEXAS LIFE & HEALTH INSURANCE
EXAM 130 QUESTIONS & CORRECT ANSWERS
LATEST 2026
A Key Employee policy is taken out by Company X on its vice president. Ten
years later, this employee leaves Company X and begins working for Company Y.
If this individual were to die and the policy is still in force and unchanged, where
would the death proceeds be directed?
Company X
3 multiple choice options
What type of life insurance are credit policies issued as?
Term
3 multiple choice options
Which of these would be considered a Limited-Pay Life policy?
Life Paid-Up at Age 70
3 multiple choice options
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
3 multiple choice options
Whole Life insurance is sometimes referred to as "Straight Life". What does the
word "Straight" indicate when using this phrase?
The duration of premium payments
3 multiple choice options
Which of the following actions is NOT possible with a Universal Life policy?
,Premiums may be applied as a credit against income tax
3 multiple choice options
Which statement about a whole life policy is true?
Cash value may be borrowed against
3 multiple choice options
Term insurance has which of the following characteristics?
Expires at the end of the policy period
3 multiple choice options
Who has the option to renew a Renewable Term policy?
Insured
3 multiple choice options
Under a Graded Premium Whole Life policy,
the premium increases each year during the early years of the contract and remains
the same after that time
3 multiple choice options
What does a Face Amount Plus Cash Value Policy pay upon the insured's death?
Face amount plus the policy's cash value
3 multiple choice options
What type of life insurance gives the greatest amount of coverage for a limited
period of time?
Term life
3 multiple choice options
At what point does a Whole Life Insurance policy endow?
When the cash value equals the death benefit
3 multiple choice options
, Which of the following actions require a policyowner to provide proof of
insurability in an Adjustable Life policy?
decrease premium payment
increase face amount
3 multiple choice options
Under a Graded Premium policy, the premiums
are lower during the policy's early years
3 multiple choice options
If a 10-Year Term Life policy contains a Renewability provision, the policy will
renew
without evidence of insurability
3 multiple choice options
What type of life policy covers two lives and pays the face amount after the first
one dies?
Joint Life Policy
3 multiple choice options
Which statement is TRUE regarding a Variable Whole Life policy?
A minimum guaranteed Death benefit is provided
3 multiple choice options
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct?
20-Pay Life accumulates cash value faster than Straight Life
3 multiple choice options
Under a Renewable Term policy,
the renewal premium is calculated on the basis of the insured's attained age
3 multiple choice options
EXAM 130 QUESTIONS & CORRECT ANSWERS
LATEST 2026
A Key Employee policy is taken out by Company X on its vice president. Ten
years later, this employee leaves Company X and begins working for Company Y.
If this individual were to die and the policy is still in force and unchanged, where
would the death proceeds be directed?
Company X
3 multiple choice options
What type of life insurance are credit policies issued as?
Term
3 multiple choice options
Which of these would be considered a Limited-Pay Life policy?
Life Paid-Up at Age 70
3 multiple choice options
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
3 multiple choice options
Whole Life insurance is sometimes referred to as "Straight Life". What does the
word "Straight" indicate when using this phrase?
The duration of premium payments
3 multiple choice options
Which of the following actions is NOT possible with a Universal Life policy?
,Premiums may be applied as a credit against income tax
3 multiple choice options
Which statement about a whole life policy is true?
Cash value may be borrowed against
3 multiple choice options
Term insurance has which of the following characteristics?
Expires at the end of the policy period
3 multiple choice options
Who has the option to renew a Renewable Term policy?
Insured
3 multiple choice options
Under a Graded Premium Whole Life policy,
the premium increases each year during the early years of the contract and remains
the same after that time
3 multiple choice options
What does a Face Amount Plus Cash Value Policy pay upon the insured's death?
Face amount plus the policy's cash value
3 multiple choice options
What type of life insurance gives the greatest amount of coverage for a limited
period of time?
Term life
3 multiple choice options
At what point does a Whole Life Insurance policy endow?
When the cash value equals the death benefit
3 multiple choice options
, Which of the following actions require a policyowner to provide proof of
insurability in an Adjustable Life policy?
decrease premium payment
increase face amount
3 multiple choice options
Under a Graded Premium policy, the premiums
are lower during the policy's early years
3 multiple choice options
If a 10-Year Term Life policy contains a Renewability provision, the policy will
renew
without evidence of insurability
3 multiple choice options
What type of life policy covers two lives and pays the face amount after the first
one dies?
Joint Life Policy
3 multiple choice options
Which statement is TRUE regarding a Variable Whole Life policy?
A minimum guaranteed Death benefit is provided
3 multiple choice options
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct?
20-Pay Life accumulates cash value faster than Straight Life
3 multiple choice options
Under a Renewable Term policy,
the renewal premium is calculated on the basis of the insured's attained age
3 multiple choice options
