Pearson Vue Life Insurance Practice Exam Questions and
Answers with Solutions 2026 | 2027
P wants to name her husband as the beneficiary of her life
policy. However, she wishes to retain all of the rights of
ownership. P should have her husband named as the:
A.irrevocable beneficiary
B.revocable beneficiary
C.secondary beneficiary - ANSWER B
A contract that has as its basic function the systematic
liquidation of accumulated assets through periodic payments is
called an:
A.indemnity contract
B.investment contract
,C.endowment
D.annuity - ANSWER D
An insurance producer takes an application for a life insurance
policy but does not collect the initial premium. On delivery of
the policy to the proposed insured, the producer must collect
the initial premium and which of the following?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
D.A copy of the temporary insurance agreement that covered
the period between the application date and the delivery date. -
ANSWER B
An employer can deduct premium payments as an ordinary
business expense for which of the following life coverages?
, A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary -
ANSWER B
A producer takes applications from identical twins who want to
buy the same type of policy in the same amount. The insurer
issues the policies as applied for, but charges a 25 percent
higher premium for one of the policies. The difference in
premiums is probably due to which of the following factors?
A.Incontestability
B.Insurable interest
C.Consideration
D.Risk classification - ANSWER D
In the event of an insured's death, which of the following
provides an income for the family during a designated period of
time followed by a lump sum death benefit?
Answers with Solutions 2026 | 2027
P wants to name her husband as the beneficiary of her life
policy. However, she wishes to retain all of the rights of
ownership. P should have her husband named as the:
A.irrevocable beneficiary
B.revocable beneficiary
C.secondary beneficiary - ANSWER B
A contract that has as its basic function the systematic
liquidation of accumulated assets through periodic payments is
called an:
A.indemnity contract
B.investment contract
,C.endowment
D.annuity - ANSWER D
An insurance producer takes an application for a life insurance
policy but does not collect the initial premium. On delivery of
the policy to the proposed insured, the producer must collect
the initial premium and which of the following?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
D.A copy of the temporary insurance agreement that covered
the period between the application date and the delivery date. -
ANSWER B
An employer can deduct premium payments as an ordinary
business expense for which of the following life coverages?
, A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary -
ANSWER B
A producer takes applications from identical twins who want to
buy the same type of policy in the same amount. The insurer
issues the policies as applied for, but charges a 25 percent
higher premium for one of the policies. The difference in
premiums is probably due to which of the following factors?
A.Incontestability
B.Insurable interest
C.Consideration
D.Risk classification - ANSWER D
In the event of an insured's death, which of the following
provides an income for the family during a designated period of
time followed by a lump sum death benefit?
