PEARSON VUE LIFE & HEALTH
INSURANCE EXAM — 2025-2026
EDITION VERIFIED QUESTIONS &
CORRECT ANSWERS STATE LICENSING
PREPARATION
SECTION A: CORE QUESTION BANK (1–500 SAMPLE SHOWN)
LIFE INSURANCE
1. What type of life insurance provides pure death protection for a specific period?
A. Whole life
B. Universal life
C. Term life
D. Variable life
Answer: C
Rationale: Term life provides temporary protection with no cash value.
2. Which policy builds cash value?
A. Term life
B. Whole life
C. Credit life
D. Group life
Answer: B
Rationale: Whole life accumulates guaranteed cash value over time.
3. What is the purpose of a rider?
A. Replace policy
B. Modify coverage
C. Cancel policy
,D. Increase premium
Answer: B
Rationale: Riders customize policies (e.g., waiver of premium).
4. When must insurable interest exist?
A. At death
B. At claim
C. At policy issue
D. At renewal
Answer: C
5. What does the grace period allow?
A. Free insurance
B. Late premium payment
C. Policy cancellation
D. Claim denial
Answer: B
6. Which clause prevents insurer from voiding policy after 2 years?
A. Entire contract
B. Incontestability
C. Assignment
D. Consideration
Answer: B
7. What is a policy loan?
A. Borrow from insurer
B. Borrow against cash value
C. Premium refund
D. Death benefit advance
Answer: B
8. Which beneficiary cannot be changed?
,A. Primary
B. Revocable
C. Irrevocable
D. Contingent
Answer: C
9. What happens if age is misstated?
A. Policy void
B. Claim denied
C. Benefit adjusted
D. Premium refunded
Answer: C
10. Which option uses cash value to continue coverage?
A. Surrender
B. Reduced paid-up
C. Loan
D. Assignment
Answer: B
HEALTH INSURANCE
11. What is a premium?
A. Deductible
B. Monthly payment
C. Claim
D. Benefit
Answer: B
12. What is coinsurance?
A. Fixed fee
B. Shared cost percentage
C. Deductible
D. Maximum limit
Answer: B
, 13. Which plan has a network and requires referrals?
A. PPO
B. HMO
C. Indemnity
D. POS
Answer: B
14. What is an out-of-pocket maximum?
A. Total premium
B. Max insured pays
C. Deductible
D. Copay
Answer: B
15. What does disability insurance cover?
A. Medical bills
B. Lost income
C. Life expenses
D. Prescriptions
Answer: B
16. What is an elimination period?
A. Coverage limit
B. Waiting period
C. Deductible
D. Premium gap
Answer: B
17. Medicare Part B covers:
A. Hospital
B. Doctor visits
C. Drugs
INSURANCE EXAM — 2025-2026
EDITION VERIFIED QUESTIONS &
CORRECT ANSWERS STATE LICENSING
PREPARATION
SECTION A: CORE QUESTION BANK (1–500 SAMPLE SHOWN)
LIFE INSURANCE
1. What type of life insurance provides pure death protection for a specific period?
A. Whole life
B. Universal life
C. Term life
D. Variable life
Answer: C
Rationale: Term life provides temporary protection with no cash value.
2. Which policy builds cash value?
A. Term life
B. Whole life
C. Credit life
D. Group life
Answer: B
Rationale: Whole life accumulates guaranteed cash value over time.
3. What is the purpose of a rider?
A. Replace policy
B. Modify coverage
C. Cancel policy
,D. Increase premium
Answer: B
Rationale: Riders customize policies (e.g., waiver of premium).
4. When must insurable interest exist?
A. At death
B. At claim
C. At policy issue
D. At renewal
Answer: C
5. What does the grace period allow?
A. Free insurance
B. Late premium payment
C. Policy cancellation
D. Claim denial
Answer: B
6. Which clause prevents insurer from voiding policy after 2 years?
A. Entire contract
B. Incontestability
C. Assignment
D. Consideration
Answer: B
7. What is a policy loan?
A. Borrow from insurer
B. Borrow against cash value
C. Premium refund
D. Death benefit advance
Answer: B
8. Which beneficiary cannot be changed?
,A. Primary
B. Revocable
C. Irrevocable
D. Contingent
Answer: C
9. What happens if age is misstated?
A. Policy void
B. Claim denied
C. Benefit adjusted
D. Premium refunded
Answer: C
10. Which option uses cash value to continue coverage?
A. Surrender
B. Reduced paid-up
C. Loan
D. Assignment
Answer: B
HEALTH INSURANCE
11. What is a premium?
A. Deductible
B. Monthly payment
C. Claim
D. Benefit
Answer: B
12. What is coinsurance?
A. Fixed fee
B. Shared cost percentage
C. Deductible
D. Maximum limit
Answer: B
, 13. Which plan has a network and requires referrals?
A. PPO
B. HMO
C. Indemnity
D. POS
Answer: B
14. What is an out-of-pocket maximum?
A. Total premium
B. Max insured pays
C. Deductible
D. Copay
Answer: B
15. What does disability insurance cover?
A. Medical bills
B. Lost income
C. Life expenses
D. Prescriptions
Answer: B
16. What is an elimination period?
A. Coverage limit
B. Waiting period
C. Deductible
D. Premium gap
Answer: B
17. Medicare Part B covers:
A. Hospital
B. Doctor visits
C. Drugs
