Pearson Vue Life Insurance Practice Exam QUESTIONS
AND ANSWERS EXAM - ACTUAL EXAM WITH A
STUDY GUIDE AND PRACTICE EXAM | GUARANTEED
PASS | LATEST UPDATE
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
C.endowment
D.annuity - CORRECT ANSWER D
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. - CORRECT
ANSWER B
,An employer can deduct premium payments as an ordinary business
expense for which of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary - CORRECT
ANSWER B
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 - CORRECT ANSWER D
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 - CORRECT ANSWER A
, Which of the following statements is CORRECT about Group Life
conversion 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
employee 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. - CORRECT
ANSWER B
Which of the following policies is an interest-sensitive form of
permanent protection?
A.Universal Life
B.Limited-Pay Life
C.Graded Premium Whole Life
D.Modified Whole Life - CORRECT ANSWER A
Reinstatement of a life insurance policy requires an insured to take all of
the following actions EXCEPT:
A.provide evidence of insurability
B.make collateral assignment to the insurer
AND ANSWERS EXAM - ACTUAL EXAM WITH A
STUDY GUIDE AND PRACTICE EXAM | GUARANTEED
PASS | LATEST UPDATE
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
C.endowment
D.annuity - CORRECT ANSWER D
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. - CORRECT
ANSWER B
,An employer can deduct premium payments as an ordinary business
expense for which of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary - CORRECT
ANSWER B
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 - CORRECT ANSWER D
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 - CORRECT ANSWER A
, Which of the following statements is CORRECT about Group Life
conversion 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
employee 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. - CORRECT
ANSWER B
Which of the following policies is an interest-sensitive form of
permanent protection?
A.Universal Life
B.Limited-Pay Life
C.Graded Premium Whole Life
D.Modified Whole Life - CORRECT ANSWER A
Reinstatement of a life insurance policy requires an insured to take all of
the following actions EXCEPT:
A.provide evidence of insurability
B.make collateral assignment to the insurer
