Pearson Vue NC Life Insurance
Practice Exams Questions And
Answers
/. 1
Q: A life insurance policy that combines Term insurance and an interest-bearing
account is BEST classified as which of the following types of policies? - Answer-✅B.
Universal Life
/.2
Q: Which of the following policy provisions states that the application is part of the
policy? - Answer-✅A. Entire contract
/.3
Q: Which of the following annuities BEST suits the needs of a 35-year-old factory
worker concerned about inflation who wants to establish a retirement plan? - Answer-
✅D. A Flexible Premium Variable Annuity
/.4
Q: An employer can deduct premium payments as an ordinary business expense for
which of the following life coverages? - Answer-✅B. Group
/.5
Q: A Renewable Term policy may be renewed only if which of the following is correct? -
Answer-✅B. The insured requests renewal at the end of the policy term.
/.6
Q: A prospect is critical of the low interest assumption used in the Whole Life product
proposed for purchase. Which of the following products could be used to resolve the
prospect's concerns? - Answer-✅B. Interest-Sensitive Whole Life
/.7
Q: Under the Social Security Retirement Benefits, all of the following factors will
influence how much a retiring individual will receive as a monthly income benefit
EXCEPT the individual's: - Answer-✅D. Gender
/.8
Q: All of the following policies may be examples of third-party ownership EXCEPT: -
Answer-✅A. Modified Life
/.9
, Q: Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the other partner to buy 100 percent of the business
interest? - Answer-✅A. Buy and Sell Agreement
/.10
Q: A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an: - Answer-✅D. Annuity
/.11
Q: Which of the following terms refers to the transfer of some or all of the ownership
rights of a life insurance policy from one individual to another? - Answer-✅D.
Assignment
/.12
Q: A type of annuity in which the cash values are invested in securities is called: -
Answer-✅A. Variable
/.13
Q: 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? - Answer-✅B. The
insured's signed statement of continued good health
/.14
Q: In life insurance, the Free Look provision begins on the: - Answer-✅B. Policy delivery
date
/.15
Q: If a policy contains a Guaranteed Insurability rider, the insured has the right to
purchase: - Answer-✅C. Additional coverage at specified ages
/.16
Q: Which of the following group life plans requires at least 75 percent of the eligible
members to participate? - Answer-✅A. Contributory
/.17
Q: 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? - Answer-✅D. Risk classification
/.18
Q: In which of the following contracts is the Death benefit called the principal sum? -
Answer-✅B. Accidental Death and Dismemberment (AD&D)
/.19
Practice Exams Questions And
Answers
/. 1
Q: A life insurance policy that combines Term insurance and an interest-bearing
account is BEST classified as which of the following types of policies? - Answer-✅B.
Universal Life
/.2
Q: Which of the following policy provisions states that the application is part of the
policy? - Answer-✅A. Entire contract
/.3
Q: Which of the following annuities BEST suits the needs of a 35-year-old factory
worker concerned about inflation who wants to establish a retirement plan? - Answer-
✅D. A Flexible Premium Variable Annuity
/.4
Q: An employer can deduct premium payments as an ordinary business expense for
which of the following life coverages? - Answer-✅B. Group
/.5
Q: A Renewable Term policy may be renewed only if which of the following is correct? -
Answer-✅B. The insured requests renewal at the end of the policy term.
/.6
Q: A prospect is critical of the low interest assumption used in the Whole Life product
proposed for purchase. Which of the following products could be used to resolve the
prospect's concerns? - Answer-✅B. Interest-Sensitive Whole Life
/.7
Q: Under the Social Security Retirement Benefits, all of the following factors will
influence how much a retiring individual will receive as a monthly income benefit
EXCEPT the individual's: - Answer-✅D. Gender
/.8
Q: All of the following policies may be examples of third-party ownership EXCEPT: -
Answer-✅A. Modified Life
/.9
, Q: Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the other partner to buy 100 percent of the business
interest? - Answer-✅A. Buy and Sell Agreement
/.10
Q: A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an: - Answer-✅D. Annuity
/.11
Q: Which of the following terms refers to the transfer of some or all of the ownership
rights of a life insurance policy from one individual to another? - Answer-✅D.
Assignment
/.12
Q: A type of annuity in which the cash values are invested in securities is called: -
Answer-✅A. Variable
/.13
Q: 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? - Answer-✅B. The
insured's signed statement of continued good health
/.14
Q: In life insurance, the Free Look provision begins on the: - Answer-✅B. Policy delivery
date
/.15
Q: If a policy contains a Guaranteed Insurability rider, the insured has the right to
purchase: - Answer-✅C. Additional coverage at specified ages
/.16
Q: Which of the following group life plans requires at least 75 percent of the eligible
members to participate? - Answer-✅A. Contributory
/.17
Q: 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? - Answer-✅D. Risk classification
/.18
Q: In which of the following contracts is the Death benefit called the principal sum? -
Answer-✅B. Accidental Death and Dismemberment (AD&D)
/.19
