Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
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 -
correct 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 -
correct 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?
,Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
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. -
correct 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 -
correct 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?
,Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
A. Incontestability
B. Insurable interest
C. Consideration
D. Risk classification -
correct 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?
A. Family Income rider
B. Survivorship Life policy
C. Joint Life policy
D. Modified Life policy -
correct answer ✅A
Which of the following statements is CORRECT about Group Life
conversion privileges?
A. Under the COBRA law, a departing employee may elect to remain
a member of the Group Life plan for a limited period of time.
, Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
B. Death during the conversion period is covered even if the
departing employee chose not to convert the policy.
C. A departing employee must individually pay the premium if the
employee elects to be covered during the conversion period.
D .If a departing employee elects to convert a life insurance policy,
the insurer must offer Term insurance as one of the choices. -
correct answer ✅B
Which of the following policies is an interest-sensitive form of
permanent protection?
A. Universal Life
B. Limited-Pay Life
C. Graded Premium Whole Life
D. Modified Whole Life -
correct answer ✅A
Reinstatement of a life insurance policy requires an insured to take
all of the following actions EXCEPT:
A. provide evidence of insurability
B. make collateral assignment to the insurer
Practice Exam Questions And
Answers
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 -
correct 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 -
correct 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?
,Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
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. -
correct 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 -
correct 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?
,Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
A. Incontestability
B. Insurable interest
C. Consideration
D. Risk classification -
correct 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?
A. Family Income rider
B. Survivorship Life policy
C. Joint Life policy
D. Modified Life policy -
correct answer ✅A
Which of the following statements is CORRECT about Group Life
conversion privileges?
A. Under the COBRA law, a departing employee may elect to remain
a member of the Group Life plan for a limited period of time.
, Pearson Vue Life + Health Insurance
Practice Exam Questions And
Answers
B. Death during the conversion period is covered even if the
departing employee chose not to convert the policy.
C. A departing employee must individually pay the premium if the
employee elects to be covered during the conversion period.
D .If a departing employee elects to convert a life insurance policy,
the insurer must offer Term insurance as one of the choices. -
correct answer ✅B
Which of the following policies is an interest-sensitive form of
permanent protection?
A. Universal Life
B. Limited-Pay Life
C. Graded Premium Whole Life
D. Modified Whole Life -
correct answer ✅A
Reinstatement of a life insurance policy requires an insured to take
all of the following actions EXCEPT:
A. provide evidence of insurability
B. make collateral assignment to the insurer
