Pearson Vue Insurance Practice Exam Questions with
Verified Solutions.
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
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
Answer: Modified Life
Which of the following group life plan requires at least 75 percent of the eligible
members to participate? - Correct Answer Contributory
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 which of the following contracts is the death benefit called the principal sum? -
Correct Answer Accidental Death and Dismemberment (AD&D)
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
If an applicant for life insurance submits a completed application to a producer without
paying the first premium, coverage becomes effective when the - Correct Answer Policy
is delivered and the premium paid
An insured owns $10,000 policy with a $4000 cash value and a 6 percent interest rate.
On January 1, the insured borrows $500 and pays one years interest in advance.
During the year, the insured does not repay any part of the loan or interest. If the
Verified Solutions.
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
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
Answer: Modified Life
Which of the following group life plan requires at least 75 percent of the eligible
members to participate? - Correct Answer Contributory
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 which of the following contracts is the death benefit called the principal sum? -
Correct Answer Accidental Death and Dismemberment (AD&D)
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
If an applicant for life insurance submits a completed application to a producer without
paying the first premium, coverage becomes effective when the - Correct Answer Policy
is delivered and the premium paid
An insured owns $10,000 policy with a $4000 cash value and a 6 percent interest rate.
On January 1, the insured borrows $500 and pays one years interest in advance.
During the year, the insured does not repay any part of the loan or interest. If the
