Pearson VUE Texas Life & Health Insurance Mock Exam
Questions & Answers 2026 | Trusted Solutions
1. What is the action that a producer should NOT take when delivering a health
policy to the applicant?
issue a conditional receipt
explain the Free Look provision which begins on the policy delivery
date
have the applicant complete a statement of continued good health
collect the initial premium payment
2. In a noncontributory health insurance plan, what percentage of eligible
employees must participate in the plan before the plan can become
effective?
100%
75%
50%
25%
3. If a patient is admitted to the hospital for surgery, which part of Medicare
would primarily cover their hospital stay expenses?
Medicare Part C
Medicare Part D
Medicare Part B
Medicare Part A
,4. What is a key feature of a Disability Income policy with a Guaranteed
Insurability rider?
The policy is issued without any medical underwriting.
The insured may transfer the policy to a family member.
The insurer cannot cancel the policy under any circumstances.
The insured may periodically increase the amount of benefits
payable under the policy.
5. Maria pays $400 each month for an individual accident and health insurance
policy. The insurer cannot change any of the policy's provisions but has
decided to increase the premium for Maria and others in her group of
insureds. Which type of policy does Maria own?
Conditionally renewable
Guaranteed renewable
Nonrenewable
Cancelable
6. If the insured's brother had survived the train accident, but the insured had
not, what would be the outcome regarding the policy proceeds?
The policy proceeds would be paid to the insured's spouse.
The policy proceeds would be paid to the insured's brother.
The policy proceeds would be paid to the insured's estate.
The policy proceeds would be paid to the insured's son.
7. What is the relationship between group long-term disability plans and Social
Security benefits?
, Social Security benefits are paid first.
They are paid separately without any limit.
Group benefits are always higher than Social Security.
They pay a combined maximum limit.
8. The Elimination Period in most Disability Income policies applies:
during short-term disabilities that are easily managed
during the first 30 days of the contract
to each separate disability
to claims for accidents only
9. A precertification review prior to a nonemergency hospitalization is an
example of:
managed care
Disability Income
Medicaid
Medicare
10. Al gets disability income benefits from an employer-paid Group Disability
plan. How does tax law treat his benefits?
Only 50 percent of his benefits are taxable.
His benefits are fully taxable.
Only two-thirds of his benefits are taxable.
The benefits are exempt from taxation.
, 11. "Capital sum" refers to the
dismemberment benefit paid under an accidental death and
dismemberment policy.
or amount of capital required for a fraternal benefit society to sell
insurance to its members.
12. If an insurance applicant submits an application to an insurer without a
premium payment, the applicant has:
made a counteroffer to the insurer
invited the insurer to make an offer to the applicant
made an offer to the insurer
formally requested a proposal from the insurer
13. A Waiver of Premium provision in a Disability Income policy allows what?
The insured to extend the Grace Period.
The insurer to subtract the premium payments from the insured's
benefit payments.
The insurer to increase the premium because of the disability.
The insured to maintain a policy in force while unable to pay
premiums when disabled.
14. The scope and limits of coverage is identified in which clause of the
insurance policy?
The Entire Contract Clause
The Coverage Identification Clause
The Insuring Clause
Questions & Answers 2026 | Trusted Solutions
1. What is the action that a producer should NOT take when delivering a health
policy to the applicant?
issue a conditional receipt
explain the Free Look provision which begins on the policy delivery
date
have the applicant complete a statement of continued good health
collect the initial premium payment
2. In a noncontributory health insurance plan, what percentage of eligible
employees must participate in the plan before the plan can become
effective?
100%
75%
50%
25%
3. If a patient is admitted to the hospital for surgery, which part of Medicare
would primarily cover their hospital stay expenses?
Medicare Part C
Medicare Part D
Medicare Part B
Medicare Part A
,4. What is a key feature of a Disability Income policy with a Guaranteed
Insurability rider?
The policy is issued without any medical underwriting.
The insured may transfer the policy to a family member.
The insurer cannot cancel the policy under any circumstances.
The insured may periodically increase the amount of benefits
payable under the policy.
5. Maria pays $400 each month for an individual accident and health insurance
policy. The insurer cannot change any of the policy's provisions but has
decided to increase the premium for Maria and others in her group of
insureds. Which type of policy does Maria own?
Conditionally renewable
Guaranteed renewable
Nonrenewable
Cancelable
6. If the insured's brother had survived the train accident, but the insured had
not, what would be the outcome regarding the policy proceeds?
The policy proceeds would be paid to the insured's spouse.
The policy proceeds would be paid to the insured's brother.
The policy proceeds would be paid to the insured's estate.
The policy proceeds would be paid to the insured's son.
7. What is the relationship between group long-term disability plans and Social
Security benefits?
, Social Security benefits are paid first.
They are paid separately without any limit.
Group benefits are always higher than Social Security.
They pay a combined maximum limit.
8. The Elimination Period in most Disability Income policies applies:
during short-term disabilities that are easily managed
during the first 30 days of the contract
to each separate disability
to claims for accidents only
9. A precertification review prior to a nonemergency hospitalization is an
example of:
managed care
Disability Income
Medicaid
Medicare
10. Al gets disability income benefits from an employer-paid Group Disability
plan. How does tax law treat his benefits?
Only 50 percent of his benefits are taxable.
His benefits are fully taxable.
Only two-thirds of his benefits are taxable.
The benefits are exempt from taxation.
, 11. "Capital sum" refers to the
dismemberment benefit paid under an accidental death and
dismemberment policy.
or amount of capital required for a fraternal benefit society to sell
insurance to its members.
12. If an insurance applicant submits an application to an insurer without a
premium payment, the applicant has:
made a counteroffer to the insurer
invited the insurer to make an offer to the applicant
made an offer to the insurer
formally requested a proposal from the insurer
13. A Waiver of Premium provision in a Disability Income policy allows what?
The insured to extend the Grace Period.
The insurer to subtract the premium payments from the insured's
benefit payments.
The insurer to increase the premium because of the disability.
The insured to maintain a policy in force while unable to pay
premiums when disabled.
14. The scope and limits of coverage is identified in which clause of the
insurance policy?
The Entire Contract Clause
The Coverage Identification Clause
The Insuring Clause
