Pearson Vue Life Insurance Practice Exam

Pearson Vue Life Insurance Practice Exam v v v v v




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




e wishes to retain all of the rights of ownership. P should have her husbandname
v v v v v v v v v v v v v v v




d as the:
v v




A. irrevocable beneficiary B v v




.revocable beneficiary C.se v v




condary beneficiary: correct
v v




answer- B
v vv




2. A contract that has as its basic function the systematic liquidation ofac
v v v v v v v v v v v v




cumulated assets through periodic payments is called an:
v v v v v v v




A. indemnity contract v v




B.investment contract v v




C.endowment D.annui v




ty: correct answer- D
v v vv




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




does not collect the initial premium. On delivery of the policy to the proposed
v v v v v v v v v v v v v




1v/v14

,insured, the producer must collect the initial premium and whichof the follo
v v v v v v v v v v v v v




wing?



A.A copy of the MIB report
v v v v v




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




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




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




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




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




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




A. Buy and Sell Agreements
v v v v




B.Group

C.Key Employee v




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




2v/v14

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




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




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




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




A.Incontestability B.Ins v




urable interest C.Consi v v




deration D.Risk classifi v v




cation: D v




6. In the event of an insured's death, which of the following provides an incomefor
v v v v v v v v v v v v v v v




the family during a designated period of time followed by a lump sum deathbenefi
v v v v v v v v v v v v v v




t?



A. Family Income rider B.S v v v




urvivorship Life policyC.J v v v




oint Life policy v v




D.Modified Life policy: A v v v




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




sion privileges?
v v




3v/v14