Pearson Vue >> Life + Health Insurance
Verified Multiple Choice and Conceptual Actual
Emended Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Which type of life insurance has level premiums, guaranteed cash value,
and a guaranteed death benefit?
A) Universal Life
B) Whole Life
C) Term Life
D) Variable Life
Answer: B
2. Federal income tax laws generally treat proceeds of life insurance policies
as:
A. graduated taxes
B. deferred taxes
C. nontaxable
D. tax credits - ANSWER C
2. Universal Life allows for:
A) Level premiums and fixed death benefit
B) Flexible premiums and adjustable death benefits
C) No cash value accumulation
,D) Guaranteed dividends
Answer: B
3. Which license is required to sell Variable Life insurance?
A) Property and Casualty license
B) Life Insurance license only
C) Securities license (FINRA)
D) Health Insurance license
Answer: C
4. Under the Claims Forms provision of a health policy, if the insurance company
fails to send claim forms within the time period required, the insured should:
A. expect a full refund of all premiums paid plus interest
B. submit the claim in any form, which must be accepted by the company as
adequate proof of loss
C. request the Department of Insurance mediate the claim settlement
D. wait for the claim form to arrive - ANSWER B
5. A family that wants coverage to pay off a decreasing mortgage balance should
purchase:
A) Level Term
B) Decreasing Term
C) Whole Life
D) Universal Life
Answer: B
5. The Waiver of Premium rider waives premiums if the insured:
A) Retires before age 65
B) Becomes totally disabled
C) Is diagnosed with a terminal illness
D) Reaches age 70
Answer: B
,6. The Guaranteed Insurability Rider allows the insured to purchase additional
coverage:
A) Without a medical exam
B) Only if insurable interest exists
C) With proof of continued good health
D) At retirement only
Answer: A
7. Which rider pays a lump sum if the insured dies from an accident?
A) Waiver of Premium Rider
B) Family Income Rider
C) Accidental Death Benefit Rider
D) Guaranteed Insurability Rider
Answer: C
8. Which rider provides benefits if the insured cannot perform two or more
Activities of Daily Living (ADLs)?
A) Disability Income Rider
B) Long-Term Care Rider
C) Guaranteed Insurability Rider
D) Payor Benefit Rider
Answer: B
9. The Payor Benefit Rider is most commonly used with:
A) Group Life Insurance
B) Variable Life Insurance
C) Juvenile Life Insurance
D) Credit Life Insurance
Answer: C
10. Joint Life policies pay the death benefit:
A) When both insureds have died
B) Only after 20 years
C) Upon the first insured’s death
, D) Upon the second insured’s death
Answer: C
11.The provision that prevents an insurer from denying a claim after a policy
has been in force for two years is called:
Answer: Incontestability Clause
12.True or False: The Entire Contract Provision states that the policy and
attached application form the entire contract.
Answer: True
13.A revocable beneficiary designation allows the policyowner to:
Answer: Change the beneficiary without consent
14.Which nonforfeiture option provides the longest period of coverage?
Answer: Reduced Paid-Up Insurance
15.True or False: Dividends from participating policies are guaranteed.
Answer: False
16.Which dividend option allows dividends to buy additional paid-up
insurance?
Answer: Paid-Up Additions
17.Under the Misstatement of Age provision, if the insured’s age was
misstated:
Answer: Benefits are adjusted to the correct age
18.True or False: Policy loans reduce both the cash value and death benefit if
not repaid.
Answer: True
19.The Grace Period provision usually allows:
Answer: 30 or 31 days to pay overdue premiums
20.Which type of beneficiary designation cannot be changed without consent?
Answer: Irrevocable Beneficiary
Verified Multiple Choice and Conceptual Actual
Emended Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Which type of life insurance has level premiums, guaranteed cash value,
and a guaranteed death benefit?
A) Universal Life
B) Whole Life
C) Term Life
D) Variable Life
Answer: B
2. Federal income tax laws generally treat proceeds of life insurance policies
as:
A. graduated taxes
B. deferred taxes
C. nontaxable
D. tax credits - ANSWER C
2. Universal Life allows for:
A) Level premiums and fixed death benefit
B) Flexible premiums and adjustable death benefits
C) No cash value accumulation
,D) Guaranteed dividends
Answer: B
3. Which license is required to sell Variable Life insurance?
A) Property and Casualty license
B) Life Insurance license only
C) Securities license (FINRA)
D) Health Insurance license
Answer: C
4. Under the Claims Forms provision of a health policy, if the insurance company
fails to send claim forms within the time period required, the insured should:
A. expect a full refund of all premiums paid plus interest
B. submit the claim in any form, which must be accepted by the company as
adequate proof of loss
C. request the Department of Insurance mediate the claim settlement
D. wait for the claim form to arrive - ANSWER B
5. A family that wants coverage to pay off a decreasing mortgage balance should
purchase:
A) Level Term
B) Decreasing Term
C) Whole Life
D) Universal Life
Answer: B
5. The Waiver of Premium rider waives premiums if the insured:
A) Retires before age 65
B) Becomes totally disabled
C) Is diagnosed with a terminal illness
D) Reaches age 70
Answer: B
,6. The Guaranteed Insurability Rider allows the insured to purchase additional
coverage:
A) Without a medical exam
B) Only if insurable interest exists
C) With proof of continued good health
D) At retirement only
Answer: A
7. Which rider pays a lump sum if the insured dies from an accident?
A) Waiver of Premium Rider
B) Family Income Rider
C) Accidental Death Benefit Rider
D) Guaranteed Insurability Rider
Answer: C
8. Which rider provides benefits if the insured cannot perform two or more
Activities of Daily Living (ADLs)?
A) Disability Income Rider
B) Long-Term Care Rider
C) Guaranteed Insurability Rider
D) Payor Benefit Rider
Answer: B
9. The Payor Benefit Rider is most commonly used with:
A) Group Life Insurance
B) Variable Life Insurance
C) Juvenile Life Insurance
D) Credit Life Insurance
Answer: C
10. Joint Life policies pay the death benefit:
A) When both insureds have died
B) Only after 20 years
C) Upon the first insured’s death
, D) Upon the second insured’s death
Answer: C
11.The provision that prevents an insurer from denying a claim after a policy
has been in force for two years is called:
Answer: Incontestability Clause
12.True or False: The Entire Contract Provision states that the policy and
attached application form the entire contract.
Answer: True
13.A revocable beneficiary designation allows the policyowner to:
Answer: Change the beneficiary without consent
14.Which nonforfeiture option provides the longest period of coverage?
Answer: Reduced Paid-Up Insurance
15.True or False: Dividends from participating policies are guaranteed.
Answer: False
16.Which dividend option allows dividends to buy additional paid-up
insurance?
Answer: Paid-Up Additions
17.Under the Misstatement of Age provision, if the insured’s age was
misstated:
Answer: Benefits are adjusted to the correct age
18.True or False: Policy loans reduce both the cash value and death benefit if
not repaid.
Answer: True
19.The Grace Period provision usually allows:
Answer: 30 or 31 days to pay overdue premiums
20.Which type of beneficiary designation cannot be changed without consent?
Answer: Irrevocable Beneficiary
