Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
Whatnkindnofnlifeninsurancenbeneficiarynrequiresnhis/hernconsentnwhennanchangenofnben
eficiarynisnmade?
n*Irrevocablenbeneficiary
n*Tertiarynbeneficiary
n*Primarynbeneficiary
n*Revocablenbeneficiaryn-nAnswern*Irrevocablenbeneficiary
(Annirrevocablendesignationnmaynnotnbenchangednwithoutnthenwrittennconsentnofnthenbe
neficiary.)
Whenncannanpolicyownernchangenanrevocablenbeneficiary?
n*Anytime
n*Afternthenconsentnofnthencurrentnbeneficiary
n*Never
n*Onlynifnprimarynbeneficiaryndiesn-nAnswern*Anytime
(Withnanrevocablenbeneficiaryndesignation,nthenpolicyownernmaynchangenthenbeneficiar
ynatnanyntimenwithoutnnotifyingnorngettingnpermissionnfromnthenbeneficiary.)
MnpurchasednannAccidentalnDeathnandnDismembermentn(AD&D)npolicynandnnamednhis
nsonnasnbeneficiary.nMnhasnthenrightntonchangenthenbeneficiaryndesignationnatnanytime.n
Whatntypenofnbeneficiarynisnhisnson?
n*Tertiary
n*Irrevocable
n*Revocable
n*Contingentn-nAnswern*Revocable
(Withnanrevocablenbeneficiaryndesignation,nthenpolicyownernmaynchangenthenbeneficiar
ynatnanyntimenwithoutnnotifyingnorngettingnpermissionnfromnthenbeneficiary.)
HownwouldnancontingentnbeneficiarynreceiventhenpolicynproceedsninnannAccidentalnDeat
hnandnDismembermentn(AD&D)npolicy?
n*Ifnthenprimarynbeneficiarynisnanminornatnthentimenofntheninsured'sndeath
n*If nthenprimarynbeneficiaryndiesnbeforentheninsured
n*If ntheninsuredndiednofnaccidentalncauses
n*If ntheninsuredndiednofnnaturalncausesn-
nAnswern*If nthenprimarynbeneficiaryndiesnbeforentheninsured
(Ancontingentnbeneficiarynwillnreceiventhenpolicynproceedsnifnthenprimarynbeneficiaryndie
snbeforentheninsured'sndeath.)
WhichnstatementnregardingnthenChangenofnBeneficiarynprovisionnisntrue?
,Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
n*Thenbeneficiaryncannonlynbenchangednwithnthenconsentnofntheninsurer
n*Thenpolicyownerncannchangenthenbeneficiary
n*Theninsuredncannchangenthenbeneficiary
n*Anbeneficiarynchangenisnsubjectntonunderwritingnproceduresn-
nAnswern*Thenpolicyownerncannchangenthenbeneficiary
(Anpolicyownernmaynchangenanbeneficiarynatnanyntime.nHowever,nconsentnmaynbenneed
ednbynthencurrentnbeneficiarynifndesignatednasnirrevocable.)
AnpolicyownernwouldnlikentonchangenthenbeneficiarynonnanLifeninsurancenpolicynandnmak
enthenchangenpermanent.nWhichntypenofndesignationnwouldnfulfillnthisnneed?
n*Revocable
n*Contingent
n*Irrevocable
n*Primaryn-nAnswern*Irrevocable
(Annirrevocablendesignationnmaynnotnbenchangednwithoutnthenwrittennconsentnofnthenbe
neficiary.)
Whichnstatementnisntruenregardingnanminornbeneficiary?
n*Normally,nthendeathnproceedsnarenrequiredntonbenheldninntrustnuntilnthenbeneficiarynrea
chesnthenagenofn21
n*Normally,nanguardiannisnrequiredntonbenappointedninnthenBeneficiarynclausenofnthencont
ract
n*Thenminornmustnpaynthendebtsnofntheninsured'snestatenbeforenreceivingnanynofnthenproc
eeds
n*Thenminornisnentitledntonreceiventhendeathnproceedsnimmediatelyn-
nAnswern*Normally,nanguardiannisnrequiredntonbenappointedninnthenBeneficiarynclausenofn
thencontract
(Innmostncases,ninsurersnrequirenthatnanguardiannbenappointedninnthenBeneficiarynclause
nofnthenpolicynornthatnanguardiannbendesignatedninnthenwill.)
Whatnisnthenunderlyingnconceptnregardingnlevelnpremiums?
n*Levelnpremiumsnbuildncashnvaluenquickerninnthenearlynyears
n*Thenearlynyearsnarenchargednmorenthannwhatnisnneeded
n*Thenearlynyearsnarenchargednlessnthannwhatnisnneeded
n*Levelnpremiumsncannonlynbenpaidnannuallyn-
nAnswern*Thenearlynyearsnarenchargednmorenthannwhatnisnneeded
(Thenconceptnofnlevelnpremiumsnchargesnmorenthannneededninnearlynyears.)
,Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
Anpolicyownernisnablentonchoosenthenfrequencynofnpremiumnpaymentsnthroughnwhatnpoli
cynfeature?
n*Consideration
n*Payornbenefit
n*PremiumnMode
n*Assignmentnprovisionn-
nAnswern(PremiumnModenisnthenfeaturenthatnallowsnthenpolicyownerntonselectnthentimingn
ofnpremiumnpayment,nsuchnasnmonthly,nquarterly,nannuallynetc.)
Anpolicyownernisnallowedntonpaynpremiumsnmorenthannoncenanyearnundernwhichnprovisio
n?
n*Insuring
n*Consideration
n*Payor
n*ModenofnPremiumn-nAnswern*ModenofnPremium
(ThenModenofnPremiumnprovisionnpermitsnanninsuredntonpaynpremiumsnmorenthannoncen
everynyear.)
AnlifeninsurancenapplicationnmustnbensignednbynallnofnthesenEXCEPT
n*thenpolicyowner
n*thenagent
n*theninsuredn(ifnannadult)
n*beneficiaryn-nAnswern*beneficiary
()
Anynchangesnmadenonnanninsurancenapplicationnrequiresntheninitialsnofnwhom?
n*Insured
n*Agent
n*Applicant
n*Beneficiaryn-nAnswern*Applicant
(Whennannapplicantnmakesnanmistakeninntheninformationngivenntonannagentninncompletin
gnthenapplication,nthenapplicantncannhaventhenagentncorrectntheninformation,nbutnthenapp
licantnmustninitialnthencorrection.)
Tnappliesnfornanlifeninsurancenpolicynandnisntoldnbynthenproducernthatntheninsurernisnboun
dntonthencoveragenasnofnthendatenofnthenapplicationnornmedicalnexamination,nwhicheverni
snlater,nprovidednthatnTnisnannacceptablenrisk.nWhatnitemnisngivenntonT?
*Bindingnreceipt
n
, Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
n*Conditionalnreceipt
n*Warrantynreceipt
n*Backdatednreceiptn-nAnswern*Conditionalnreceipt
(Anconditionalnreceiptnbindsntheninsurerntoncoveragenasnofnthendatenofnthenapplicationnorn
medicalnexam,nprovidednthenproposedninsurednisndeterminedntonbenannacceptablenrisk.)
Mncompletesnannapplicationnfornlifeninsurancenbutndoesnnotnpayntheninitialnpremium.nAllno
fnthesenactionsnmustnoccurnbeforenM'snpolicyngoesnintoneffectnEXCEPT
n*policynisndelivered
n*free-looknperiodnhasnexpired
n*insurancencompanynissuesnpolicy
n*initialnpremiumnisncollectedn-nAnswern*free-looknperiodnhasnexpired
(Innthisnsituation,nthenpolicynwillngonintoneffectnafternallnthesenactionsnoccurnEXCEPTnthen
expirationnofnthenfree-looknperiod.)
Annoncontributoryngroupntermnlifenplannisncharacterizednby
n*thenentirencostnofnthenplannisnpaidnfornbynthenemployer
n*thenentirencostnofnthenplannisnpaidnfornbynthenemployee
n*thencostnofnthenplannisnsharednbynbothnemployernandnemployee
n*bothnemployernandnemployeenmustnprovidenevidencenofninsurabilityn-
nAnswern*thenentirencostnofnthenplannisnpaidnfornbynthenemployer
(Whennannemployernprovidesnnoncontributoryngroupntermnlifeninsurance,nthenemployern
paysnthenentirencostnofnthenplan.)
WhonisnNOTnrequiredntonsignnanlifeninsurancenapplication?
n*Adultninsured
n*Policyowner
n*Agent
n*Beneficiaryn-nAnswern*Beneficiary
(AllnofnthenfollowingnindividualsnmustnsignnanlifeninsurancenapplicationnEXCEPTnthenben
eficiary.)
WhatnactionnshouldnanproducerntakenifntheninitialnpremiumnisnNOTnsubmittednwithnthenap
plication?
n*Keepnthenapplicationnuntilnpremiumnisnpaid
n*Forwardnthenapplicationntontheninsurernafterngivingnthenapplicantnanbindingnreceipt
n*Forwardnthenapplicationntontheninsurernwithoutntheninitialnpremium
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
Whatnkindnofnlifeninsurancenbeneficiarynrequiresnhis/hernconsentnwhennanchangenofnben
eficiarynisnmade?
n*Irrevocablenbeneficiary
n*Tertiarynbeneficiary
n*Primarynbeneficiary
n*Revocablenbeneficiaryn-nAnswern*Irrevocablenbeneficiary
(Annirrevocablendesignationnmaynnotnbenchangednwithoutnthenwrittennconsentnofnthenbe
neficiary.)
Whenncannanpolicyownernchangenanrevocablenbeneficiary?
n*Anytime
n*Afternthenconsentnofnthencurrentnbeneficiary
n*Never
n*Onlynifnprimarynbeneficiaryndiesn-nAnswern*Anytime
(Withnanrevocablenbeneficiaryndesignation,nthenpolicyownernmaynchangenthenbeneficiar
ynatnanyntimenwithoutnnotifyingnorngettingnpermissionnfromnthenbeneficiary.)
MnpurchasednannAccidentalnDeathnandnDismembermentn(AD&D)npolicynandnnamednhis
nsonnasnbeneficiary.nMnhasnthenrightntonchangenthenbeneficiaryndesignationnatnanytime.n
Whatntypenofnbeneficiarynisnhisnson?
n*Tertiary
n*Irrevocable
n*Revocable
n*Contingentn-nAnswern*Revocable
(Withnanrevocablenbeneficiaryndesignation,nthenpolicyownernmaynchangenthenbeneficiar
ynatnanyntimenwithoutnnotifyingnorngettingnpermissionnfromnthenbeneficiary.)
HownwouldnancontingentnbeneficiarynreceiventhenpolicynproceedsninnannAccidentalnDeat
hnandnDismembermentn(AD&D)npolicy?
n*Ifnthenprimarynbeneficiarynisnanminornatnthentimenofntheninsured'sndeath
n*If nthenprimarynbeneficiaryndiesnbeforentheninsured
n*If ntheninsuredndiednofnaccidentalncauses
n*If ntheninsuredndiednofnnaturalncausesn-
nAnswern*If nthenprimarynbeneficiaryndiesnbeforentheninsured
(Ancontingentnbeneficiarynwillnreceiventhenpolicynproceedsnifnthenprimarynbeneficiaryndie
snbeforentheninsured'sndeath.)
WhichnstatementnregardingnthenChangenofnBeneficiarynprovisionnisntrue?
,Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
n*Thenbeneficiaryncannonlynbenchangednwithnthenconsentnofntheninsurer
n*Thenpolicyownerncannchangenthenbeneficiary
n*Theninsuredncannchangenthenbeneficiary
n*Anbeneficiarynchangenisnsubjectntonunderwritingnproceduresn-
nAnswern*Thenpolicyownerncannchangenthenbeneficiary
(Anpolicyownernmaynchangenanbeneficiarynatnanyntime.nHowever,nconsentnmaynbenneed
ednbynthencurrentnbeneficiarynifndesignatednasnirrevocable.)
AnpolicyownernwouldnlikentonchangenthenbeneficiarynonnanLifeninsurancenpolicynandnmak
enthenchangenpermanent.nWhichntypenofndesignationnwouldnfulfillnthisnneed?
n*Revocable
n*Contingent
n*Irrevocable
n*Primaryn-nAnswern*Irrevocable
(Annirrevocablendesignationnmaynnotnbenchangednwithoutnthenwrittennconsentnofnthenbe
neficiary.)
Whichnstatementnisntruenregardingnanminornbeneficiary?
n*Normally,nthendeathnproceedsnarenrequiredntonbenheldninntrustnuntilnthenbeneficiarynrea
chesnthenagenofn21
n*Normally,nanguardiannisnrequiredntonbenappointedninnthenBeneficiarynclausenofnthencont
ract
n*Thenminornmustnpaynthendebtsnofntheninsured'snestatenbeforenreceivingnanynofnthenproc
eeds
n*Thenminornisnentitledntonreceiventhendeathnproceedsnimmediatelyn-
nAnswern*Normally,nanguardiannisnrequiredntonbenappointedninnthenBeneficiarynclausenofn
thencontract
(Innmostncases,ninsurersnrequirenthatnanguardiannbenappointedninnthenBeneficiarynclause
nofnthenpolicynornthatnanguardiannbendesignatedninnthenwill.)
Whatnisnthenunderlyingnconceptnregardingnlevelnpremiums?
n*Levelnpremiumsnbuildncashnvaluenquickerninnthenearlynyears
n*Thenearlynyearsnarenchargednmorenthannwhatnisnneeded
n*Thenearlynyearsnarenchargednlessnthannwhatnisnneeded
n*Levelnpremiumsncannonlynbenpaidnannuallyn-
nAnswern*Thenearlynyearsnarenchargednmorenthannwhatnisnneeded
(Thenconceptnofnlevelnpremiumsnchargesnmorenthannneededninnearlynyears.)
,Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
Anpolicyownernisnablentonchoosenthenfrequencynofnpremiumnpaymentsnthroughnwhatnpoli
cynfeature?
n*Consideration
n*Payornbenefit
n*PremiumnMode
n*Assignmentnprovisionn-
nAnswern(PremiumnModenisnthenfeaturenthatnallowsnthenpolicyownerntonselectnthentimingn
ofnpremiumnpayment,nsuchnasnmonthly,nquarterly,nannuallynetc.)
Anpolicyownernisnallowedntonpaynpremiumsnmorenthannoncenanyearnundernwhichnprovisio
n?
n*Insuring
n*Consideration
n*Payor
n*ModenofnPremiumn-nAnswern*ModenofnPremium
(ThenModenofnPremiumnprovisionnpermitsnanninsuredntonpaynpremiumsnmorenthannoncen
everynyear.)
AnlifeninsurancenapplicationnmustnbensignednbynallnofnthesenEXCEPT
n*thenpolicyowner
n*thenagent
n*theninsuredn(ifnannadult)
n*beneficiaryn-nAnswern*beneficiary
()
Anynchangesnmadenonnanninsurancenapplicationnrequiresntheninitialsnofnwhom?
n*Insured
n*Agent
n*Applicant
n*Beneficiaryn-nAnswern*Applicant
(Whennannapplicantnmakesnanmistakeninntheninformationngivenntonannagentninncompletin
gnthenapplication,nthenapplicantncannhaventhenagentncorrectntheninformation,nbutnthenapp
licantnmustninitialnthencorrection.)
Tnappliesnfornanlifeninsurancenpolicynandnisntoldnbynthenproducernthatntheninsurernisnboun
dntonthencoveragenasnofnthendatenofnthenapplicationnornmedicalnexamination,nwhicheverni
snlater,nprovidednthatnTnisnannacceptablenrisk.nWhatnitemnisngivenntonT?
*Bindingnreceipt
n
, Insurance Practice Exam 150 Questions(
n n n n
Pearson Vue Life Insurance)With Correct
n n n n
Solutions.
n
n*Conditionalnreceipt
n*Warrantynreceipt
n*Backdatednreceiptn-nAnswern*Conditionalnreceipt
(Anconditionalnreceiptnbindsntheninsurerntoncoveragenasnofnthendatenofnthenapplicationnorn
medicalnexam,nprovidednthenproposedninsurednisndeterminedntonbenannacceptablenrisk.)
Mncompletesnannapplicationnfornlifeninsurancenbutndoesnnotnpayntheninitialnpremium.nAllno
fnthesenactionsnmustnoccurnbeforenM'snpolicyngoesnintoneffectnEXCEPT
n*policynisndelivered
n*free-looknperiodnhasnexpired
n*insurancencompanynissuesnpolicy
n*initialnpremiumnisncollectedn-nAnswern*free-looknperiodnhasnexpired
(Innthisnsituation,nthenpolicynwillngonintoneffectnafternallnthesenactionsnoccurnEXCEPTnthen
expirationnofnthenfree-looknperiod.)
Annoncontributoryngroupntermnlifenplannisncharacterizednby
n*thenentirencostnofnthenplannisnpaidnfornbynthenemployer
n*thenentirencostnofnthenplannisnpaidnfornbynthenemployee
n*thencostnofnthenplannisnsharednbynbothnemployernandnemployee
n*bothnemployernandnemployeenmustnprovidenevidencenofninsurabilityn-
nAnswern*thenentirencostnofnthenplannisnpaidnfornbynthenemployer
(Whennannemployernprovidesnnoncontributoryngroupntermnlifeninsurance,nthenemployern
paysnthenentirencostnofnthenplan.)
WhonisnNOTnrequiredntonsignnanlifeninsurancenapplication?
n*Adultninsured
n*Policyowner
n*Agent
n*Beneficiaryn-nAnswern*Beneficiary
(AllnofnthenfollowingnindividualsnmustnsignnanlifeninsurancenapplicationnEXCEPTnthenben
eficiary.)
WhatnactionnshouldnanproducerntakenifntheninitialnpremiumnisnNOTnsubmittednwithnthenap
plication?
n*Keepnthenapplicationnuntilnpremiumnisnpaid
n*Forwardnthenapplicationntontheninsurernafterngivingnthenapplicantnanbindingnreceipt
n*Forwardnthenapplicationntontheninsurernwithoutntheninitialnpremium
