PearsonVue Life Insurance Practice
Exam Questions & Answers (Grade
A+)
The PRIMARY reason for selecting a Variable Whole Life policy
instead of a traditional Whole Life policy is that the Variable Whole
Life policy: -
correct answer ✅has the potential to earn a higher rate of return
on the cash value
Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy? -
correct answer ✅They are purchased on an attained age basis.
Which of the following statements is CORRECT about Group Life
conversion privileges? -
correct answer ✅Death during the conversion period is covered
even if the departing employee chose not to convert the policy.
If an insured commits suicide after the Suicide clause in the
insured's life insurance policy has expired, the insurer will take
which of the following actions? -
correct answer ✅Pay the Death benefit
,PearsonVue Life Insurance Practice
Exam Questions & Answers (Grade
A+)
If a policy contains a Guaranteed Insurability rider, the insured has
the right to purchase: -
correct answer ✅additional coverage at specified ages
If life insurance policy applicant is classified as a substandard risk,
the insurance company will MOST likely: -
correct answer ✅charge an extra premium
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: -
correct answer ✅revocable beneficiary
Which of the following features allows an insurance policy to
remain in force for a specified number of days beyond the premium
due date? -
correct answer ✅Grace Period provision
In life insurance, insurable interest must exist at the time the: -
correct answer ✅producer writes an application on a proposed
insured
, PearsonVue Life Insurance Practice
Exam Questions & Answers (Grade
A+)
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? -
correct answer ✅Assignment
Which of the following statements about a Renewable Term policy
is CORRECT? -
correct answer ✅It is renewable at the option of the insured.
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? -
correct answer ✅Buy and Sell Agreement
An insured intentionally understates her age on her application for
a life policy. At death, the insurer will take which of the following
actions? -
correct answer ✅Pay a reduced Death benefit based on the
insured's actual age
Exam Questions & Answers (Grade
A+)
The PRIMARY reason for selecting a Variable Whole Life policy
instead of a traditional Whole Life policy is that the Variable Whole
Life policy: -
correct answer ✅has the potential to earn a higher rate of return
on the cash value
Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy? -
correct answer ✅They are purchased on an attained age basis.
Which of the following statements is CORRECT about Group Life
conversion privileges? -
correct answer ✅Death during the conversion period is covered
even if the departing employee chose not to convert the policy.
If an insured commits suicide after the Suicide clause in the
insured's life insurance policy has expired, the insurer will take
which of the following actions? -
correct answer ✅Pay the Death benefit
,PearsonVue Life Insurance Practice
Exam Questions & Answers (Grade
A+)
If a policy contains a Guaranteed Insurability rider, the insured has
the right to purchase: -
correct answer ✅additional coverage at specified ages
If life insurance policy applicant is classified as a substandard risk,
the insurance company will MOST likely: -
correct answer ✅charge an extra premium
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: -
correct answer ✅revocable beneficiary
Which of the following features allows an insurance policy to
remain in force for a specified number of days beyond the premium
due date? -
correct answer ✅Grace Period provision
In life insurance, insurable interest must exist at the time the: -
correct answer ✅producer writes an application on a proposed
insured
, PearsonVue Life Insurance Practice
Exam Questions & Answers (Grade
A+)
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? -
correct answer ✅Assignment
Which of the following statements about a Renewable Term policy
is CORRECT? -
correct answer ✅It is renewable at the option of the insured.
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? -
correct answer ✅Buy and Sell Agreement
An insured intentionally understates her age on her application for
a life policy. At death, the insurer will take which of the following
actions? -
correct answer ✅Pay a reduced Death benefit based on the
insured's actual age
