PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
What are the personal uses of life insurance?
A. Insured protection, estate creation and cash accumulation
B. Survivor protection, estate creation and conservation, cash
accumulation and liquidity
C. Cash accumulation, estate depletion and liquidity
D. Beneficiary protection, liquidity, estate creation, and cash
accumulation -
correct answer ✅B. Survivor protection, estate creation and
conservation, cash accumulation and liquidity
Upon the submission of a death claim under a life insurance policy,
when should the insurer pay the policy benefit?
A. Within 2 years pf the date of loss
B. On the next anniversary of the policy
C. After the estate of the insured has been settled
D. Immediately after receiving written proof of loss -
correct answer ✅D. Immediately after receiving written proof of
loss
Which of the following is the closet term to an "authorized"
insurer?
,PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
A. Admitted
B. Certified
C. Legal
D. Licensed -
correct answer ✅A. Admitted
The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but
their children when they reach a certain age. Which settlement
option should the policyowner choose?
A. Life income with period certain
B. Interest only option
C. Joint and survivor
D. Fixed amount option -
correct answer ✅B. Interest only option
When contributions to an immediate annuity are made with
before-tax dollars, which of the following is true of the
distributions?
A. There are no distributions
B. Distributions are nontaxable
,PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
C. Distributions are taxable
D. Distributions can't begin prior to age 70 1/2 -
correct answer ✅C. Distributions are taxable
Insurance is the transfer of
A. Risk
B. Peril
C. Hazard
D. Loss -
correct answer ✅D.Loss
An insured purchases a policy in 2008 and died in 2013. The
insurance company discovers at that time that the insured
concealed information during the application process. What can
they do?
A. Pay the death benefit
B. Pay a decreased death benefit
C. Refuse to pay the death benefit because of the fraud
D. Sue for the right to not pay the death benefit -
correct answer ✅A.Pay the death benefit
, PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
Under the incontestability clause, once the policy has been in place
for at least 2 years then you can not deny any claims
An agent accepts the premium payment 35 days after it is due,
telling the insured that there will not be a problem keeping the
policy in force. This is an example of what type of agent authority?
A. Express
B. Assumed
C. Implied
D. Apparent -
correct answer ✅D.Apparent
Agent who accepts a premium after the due date appears to the
client to have authority to prevent the lapse but in fact he does not
An annuitant dies before the effective date of a purchased annuity.
Assuming that the annuitant's wife is the beneficiary , what will
occur?
A. The interest will continue to accumulate tax deferred
B. Interest will become immediately taxable
C. Premiums will increase
EXAM QUESTIONS AND ANSWERS
What are the personal uses of life insurance?
A. Insured protection, estate creation and cash accumulation
B. Survivor protection, estate creation and conservation, cash
accumulation and liquidity
C. Cash accumulation, estate depletion and liquidity
D. Beneficiary protection, liquidity, estate creation, and cash
accumulation -
correct answer ✅B. Survivor protection, estate creation and
conservation, cash accumulation and liquidity
Upon the submission of a death claim under a life insurance policy,
when should the insurer pay the policy benefit?
A. Within 2 years pf the date of loss
B. On the next anniversary of the policy
C. After the estate of the insured has been settled
D. Immediately after receiving written proof of loss -
correct answer ✅D. Immediately after receiving written proof of
loss
Which of the following is the closet term to an "authorized"
insurer?
,PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
A. Admitted
B. Certified
C. Legal
D. Licensed -
correct answer ✅A. Admitted
The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but
their children when they reach a certain age. Which settlement
option should the policyowner choose?
A. Life income with period certain
B. Interest only option
C. Joint and survivor
D. Fixed amount option -
correct answer ✅B. Interest only option
When contributions to an immediate annuity are made with
before-tax dollars, which of the following is true of the
distributions?
A. There are no distributions
B. Distributions are nontaxable
,PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
C. Distributions are taxable
D. Distributions can't begin prior to age 70 1/2 -
correct answer ✅C. Distributions are taxable
Insurance is the transfer of
A. Risk
B. Peril
C. Hazard
D. Loss -
correct answer ✅D.Loss
An insured purchases a policy in 2008 and died in 2013. The
insurance company discovers at that time that the insured
concealed information during the application process. What can
they do?
A. Pay the death benefit
B. Pay a decreased death benefit
C. Refuse to pay the death benefit because of the fraud
D. Sue for the right to not pay the death benefit -
correct answer ✅A.Pay the death benefit
, PEARSON VUE COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS
Under the incontestability clause, once the policy has been in place
for at least 2 years then you can not deny any claims
An agent accepts the premium payment 35 days after it is due,
telling the insured that there will not be a problem keeping the
policy in force. This is an example of what type of agent authority?
A. Express
B. Assumed
C. Implied
D. Apparent -
correct answer ✅D.Apparent
Agent who accepts a premium after the due date appears to the
client to have authority to prevent the lapse but in fact he does not
An annuitant dies before the effective date of a purchased annuity.
Assuming that the annuitant's wife is the beneficiary , what will
occur?
A. The interest will continue to accumulate tax deferred
B. Interest will become immediately taxable
C. Premiums will increase
