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Pearson Vue Life Insurance Practice Exam Questions and Answers
Question 1: P wants to name her husband as the
beneficiary of her life policy. However, she wishes to retain all of the rights of ownership. P should have her
husband named as the:
- irrevocable beneficiary
- revocable beneficiary
- secondary beneficiary
CORRECT ANSWER: B
Question 2: A contract that has as its basic function the
systematic liquidation of accumulated assets through
periodic payments is called an:
- indemnity contract
- investment contract
- endowment
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- annuity
CORRECT ANSWER: D
Question 3: 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 copy of the MIB report
- The insured's signed statement of continued good
- A copy of the conditional receipt
- A copy of the temporary insurance agreement that
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covered the period between the application date and the delivery date.
CORRECT ANSWER: B
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Question 4: An employer can deduct premium payments
as an ordinary business expense for which of the following life coverages?
- Buy and Sell Agreements
- Group
- Key Employee
- Joint Life, if the business is named as the beneficiary
CORRECT ANSWER: B
Question 5: 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?
- Incontestability
- Insurable interest
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- Consideration
- Risk classification
CORRECT ANSWER: D
Question 6: 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?
- Family Income rider
- Survivorship Life policy
- Joint Life policy
- Modified Life policy
CORRECT ANSWER: A
Question 7: Which of the following statements is
CORRECT about Group Life conversion privileges?
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