Pearson Vue Insurance
Pearson Vue Insurance Practice Exam
Questions and Answers Graded A+ 2026
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 -Correct Answer ✔-Sex
In life insurance, insurance interest must exist at the time the -Correct Answer ✔-
Producer writes an application on a proposed insured
Which of the following statements is NOT correct about representations? -Correct
Answer ✔-They are true in every respect
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? -Correct
Answer ✔-The insured's signed statement of continued good health
Which of the following retirement plans is tax-qualified? -Correct Answer ✔-
Defined contribution
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
The right to change a beneficiary designation is reserved for the: -Correct Answer
✔-Policyowner
Which of the following provisions in a life policy specifies the manner in which
proceeds will be paid to a beneficiary on the death of the insured? -Correct
Answer ✔-Settlement options
Pearson Vue Insurance
, Pearson Vue Insurance
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-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of
the following actions? -Correct Answer ✔-waive an insured's premiums if the
insured becomes totally disabled before a certian age
A life insurance application is incomplete if it is missing the signature of which of
the following? -Correct Answer ✔-The proposed adult insured
Which of the following statements is correct about group life conversion
privileges? -Correct Answer ✔-Death during the conversion period is covered if
the departing employee chose not to conver the policy.
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? -Correct Answer ✔-Family income rider
A policyowner names his wife as the primary beneficiary of his Universal Life
policy on a revocable basis. He also names his three children as his secondary
beneficiaries and his estate as his tertiary beneficiary. If the policyowner's wife
predeceases him, and then he dies, who will receive the policy proceeds? -Correct
Answer ✔-children
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an -Correct Answer ✔-annuity
All of the following policies may be examples of third party ownership except -
Correct Answer ✔-Modified Life
Group Life
Split-dollar Life
Key Employee Life
Pearson Vue Insurance
Pearson Vue Insurance Practice Exam
Questions and Answers Graded A+ 2026
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 -Correct Answer ✔-Sex
In life insurance, insurance interest must exist at the time the -Correct Answer ✔-
Producer writes an application on a proposed insured
Which of the following statements is NOT correct about representations? -Correct
Answer ✔-They are true in every respect
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? -Correct
Answer ✔-The insured's signed statement of continued good health
Which of the following retirement plans is tax-qualified? -Correct Answer ✔-
Defined contribution
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
The right to change a beneficiary designation is reserved for the: -Correct Answer
✔-Policyowner
Which of the following provisions in a life policy specifies the manner in which
proceeds will be paid to a beneficiary on the death of the insured? -Correct
Answer ✔-Settlement options
Pearson Vue Insurance
, Pearson Vue Insurance
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-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of
the following actions? -Correct Answer ✔-waive an insured's premiums if the
insured becomes totally disabled before a certian age
A life insurance application is incomplete if it is missing the signature of which of
the following? -Correct Answer ✔-The proposed adult insured
Which of the following statements is correct about group life conversion
privileges? -Correct Answer ✔-Death during the conversion period is covered if
the departing employee chose not to conver the policy.
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? -Correct Answer ✔-Family income rider
A policyowner names his wife as the primary beneficiary of his Universal Life
policy on a revocable basis. He also names his three children as his secondary
beneficiaries and his estate as his tertiary beneficiary. If the policyowner's wife
predeceases him, and then he dies, who will receive the policy proceeds? -Correct
Answer ✔-children
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an -Correct Answer ✔-annuity
All of the following policies may be examples of third party ownership except -
Correct Answer ✔-Modified Life
Group Life
Split-dollar Life
Key Employee Life
Pearson Vue Insurance
