Pearson Vue Life Insurance Practice Exam Question
1.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
Revocable beneficiary
Secondary beneficiary: B
2.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 Endowment
D.annuity: D
3.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?
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.: B
4.An employer can deduct premium payments as an ordinary business
ex- pense for which of the following life coverages?
A. Buy and Sell Agreements
B.Group
C. Key Employee
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,D. Joint Life, if the business is named as the beneficiary: B
5.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?
A. Incontestability
B.Insurable interest
C.Consideration
D.Risk classification:
D
6.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: A
7.Which of the following statements is CORRECT about Group Life
conver- sion 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.
B. Death during the conversion period is covered even if the departing
employ- ee 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.: B
8.Which of the following policies is an interest-sensitive form of
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, permanent protection?
A. Universal Life
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1.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
Revocable beneficiary
Secondary beneficiary: B
2.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 Endowment
D.annuity: D
3.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?
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.: B
4.An employer can deduct premium payments as an ordinary business
ex- pense for which of the following life coverages?
A. Buy and Sell Agreements
B.Group
C. Key Employee
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21
,D. Joint Life, if the business is named as the beneficiary: B
5.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?
A. Incontestability
B.Insurable interest
C.Consideration
D.Risk classification:
D
6.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: A
7.Which of the following statements is CORRECT about Group Life
conver- sion 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.
B. Death during the conversion period is covered even if the departing
employ- ee 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.: B
8.Which of the following policies is an interest-sensitive form of
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, permanent protection?
A. Universal Life
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