PEARSON VUE TEXAS LIFE AND HEALTH INSURANCE TEST

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PEARSON VUE TEXAS LIFE AND HEALTH INSURANCE TEST

QUESTIONS 1-50 EXAM QUESTIONS

Qs and Ans - Expert- Explanation - ing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A renewable disability insurance policy

• Is renewable at the insured's option to a specified age
• Is renewable at the option of the insurer to a specified age of the insured
• Is to have a level premium for the life of the policy
• Cannot be cancelled by the insured before age 65

Answer:

Is renewable at the insured's option to a specified age Question 2: An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

• The date of the application
• The date of the medical exam
• The date of policy delivery
• The date of issue

Answer:

• The date of the medical exam

Question 3: A father purchases a life insurance policy on his teenage daughter and adds the Payor benefits rider. In which of the following scenarios will the rider waive the payment of premium?

• If the father is disabled for at least a year
• If the daughter is disabled for more than 3 months
• If the daughter is disabled for any length of time
• If the father is disabled for more than 6 months

Answer:

• If the father is disabled for more than 6 months

Question 4: *What is the purpose of settlement options?

• They are guarantees built into the policy
• They guarantee a return of excess premiums
• they provide the beneficiary the income he/she cannot outlive
• Determines how the death benefit will be paid to the beneficiary

Answer:

• Determines how the death benefit will be paid to the beneficiary

Question 5: A key person insurance policy can pay for which of the following?

• Cost of training a replacement
• Loss of personal income
• Workers compensation
• Hospital bills of the key person

Answer:

Cost of training a replacement

Question 6: In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide coverage that is

• More limited in duration
• Broader in duration
• Broder in general
• More limited in general

Answer:

• Broader in general

Question 7: Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it?

• Elimination period
• Probationary period
• Free Look period
• Grace period

Answer:

• Free look period

Question 8: An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

• Good health
• Adhesion
• Conditional
• Aleatory

Answer:

• Aleatory

Question 9: All of the following are true of key person insurance EXCEPT

• The plan is funded by permanent insurance only
• There is no limitation on the number of key employee plans in force at any time
• The employer is the owner, payor and beneficiary of the policy
• The key employee is insured

Answer:

the plan is funded by permanent insurance only

Question 10: All of the following are true of an annuity owner EXCEPT

• The owner has the right to name the beneficiary
• The owner is the party who may surrender the annuity
• The owner must be the party to receive benefits
• The owner pays the premiums on the annuity

Answer:

• The owner must be the party to receive benefits

Question 11: An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

• Adhesion
• Consideration
• Good faith
• Representation

Answer:

Consideration