Pearson VUE Life Insurance Practice Exam Questions with Verified Answers
(100% Correct) |Latest 2026/2027updates| Already Graded A+ |Policy
Types, Riders, Underwriting, Annuities
If life insurance policy applicant is classified as a substandard risk, the insurance company will MOST
likely:
A.issue the policy with riders
B.charge an extra premium
C.require an annual medical examination
D.lower the rate per thousand charged - Correct Answer -B
When a producer submits an insurance application to the company, the producer must take all of the
following actions EXCEPT:
A.submit the initial premium, if it was collected
B.ensure any changes on the application were initialed by the applicant
C.submit a completed medical information report
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,D.complete the producer's report - Correct Answer -C
In life insurance, insurable interest must exist at the time the
A.producer delivers a policy
B.proposed insured has a medical examination
C.producer writes an application on a proposed insured
D.beneficiary files a claim - Correct Answer -C
A payor benefit rider provides which of the following benefits
A.A disability income benefit payable to the payor if the payor becomes disabled
B.A permanent waiver of premium should the payor die
C.A temporary waiver of premium should the payor die, until the insured reaches a predetermined age
D.A double indemnity Death benefit payable to the beneficiary upon the death of the payor - Correct
Answer -C
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, 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?
A.Buy and Sell Agreement
B.Key Employee Life policy
C.Survivorship Life
D.Joint and Several Annuity - Correct Answer -A
In life insurance, the Free Look provision begins on the:
A.effective date of coverage
B.policy delivery date
C.date of application
D.date that the insurer issues the policy - Correct Answer -B
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(100% Correct) |Latest 2026/2027updates| Already Graded A+ |Policy
Types, Riders, Underwriting, Annuities
If life insurance policy applicant is classified as a substandard risk, the insurance company will MOST
likely:
A.issue the policy with riders
B.charge an extra premium
C.require an annual medical examination
D.lower the rate per thousand charged - Correct Answer -B
When a producer submits an insurance application to the company, the producer must take all of the
following actions EXCEPT:
A.submit the initial premium, if it was collected
B.ensure any changes on the application were initialed by the applicant
C.submit a completed medical information report
1|Page
,D.complete the producer's report - Correct Answer -C
In life insurance, insurable interest must exist at the time the
A.producer delivers a policy
B.proposed insured has a medical examination
C.producer writes an application on a proposed insured
D.beneficiary files a claim - Correct Answer -C
A payor benefit rider provides which of the following benefits
A.A disability income benefit payable to the payor if the payor becomes disabled
B.A permanent waiver of premium should the payor die
C.A temporary waiver of premium should the payor die, until the insured reaches a predetermined age
D.A double indemnity Death benefit payable to the beneficiary upon the death of the payor - Correct
Answer -C
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, 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?
A.Buy and Sell Agreement
B.Key Employee Life policy
C.Survivorship Life
D.Joint and Several Annuity - Correct Answer -A
In life insurance, the Free Look provision begins on the:
A.effective date of coverage
B.policy delivery date
C.date of application
D.date that the insurer issues the policy - Correct Answer -B
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