Pearson Vue Life Insurance Practice Exam

Pearson Vue Life Insurance Practice Exam b b b b b




1. P wants to name her husband as the beneficiary of her life policy. However,sh
b b b b b b b b b b b b b b




e wishes to retain all of the rights of ownership. P should have her husbandnam
b b b b b b b b b b b b b b b




ed as the:
b b




A. irrevocable beneficiary B b b




.revocable beneficiary C.se b b




condary beneficiary: correct
b b




answer- B
b bb




2. A contract that has as its basic function the systematic liquidation ofa
b b b b b b b b b b b b




ccumulated assets through periodic payments is called an:
b b b b b b b




A. indemnity contract b b




B.investment contract b b




C.endowment D.annui b




ty: correct answer- D
b b bb




3. An insurance producer takes an application for a life insurance policy but
b b b b b b b b b b b b




does not collect the initial premium. On delivery of the policy to the propose
b b b b b b b b b b b b b




1b/b14

,d insured, the producer must collect the initial premium and whichof the foll
b b b b b b b b b b b b b




owing?



A.A copy of the MIB report
b b b b b




B.The insured's signed statement of continued good health
b b b b b b b




C.A copy of the conditional receipt
b b b b b




D.A copy of the temporary insurance agreement that covered the periodbetwee
b b b b b b b b b b b




n the application date and the delivery date.: B
b b b b b b b b




4. An employer can deduct premium payments as an ordinary business ex-
b b b b b b b b b b




pense for which of the following life coverages?
b b b b b b b b




A. Buy and Sell Agreements
b b b b




B.Group

C.Key Employee b




D.Joint Life, if the business is named as the beneficiary: B
b b b b b b b b b b




2b/b14

, 5. A producer takes applications from identical twins who want to buy the sam
b b b b b b b b b b b b




e type of policy in the same amount. The insurer issues the policies as applied
b b b b b b b b b b b b b b b




for, but charges a 25 percent higher premium for one of the policies.The differe
b b b b b b b b b b b b b b




nce in premiums is probably due to which of the following factors?
b b b b b b b b b b b




A.Incontestability B.Ins b




urable interest C.Consi b b




deration D.Risk classifi b b




cation: D b




6. In the event of an insured's death, which of the following provides an incomefo
b b b b b b b b b b b b b b




r the family during a designated period of time followed by a lump sum deathben
b b b b b b b b b b b b b b b




efit?



A. Family Income rider B.S b b b




urvivorship Life policyC.J b b b




oint Life policy b b




D.Modified Life policy: A b b b




7. Which of the following statements is CORRECT about Group Life conver-
b b b b b b b b b b




sion privileges?
b b




3b/b14