PEARSON VUE INSURANCE PRACTICE EXAM

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PEARSON VUE INSURANCE PRACTICE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -56 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 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?

Answer:

Family income rider Question 2: Which of the following policies is an interest sensitive form of permanent protection?

Answer:

Universal Life Question 3: If an applicant for life insurance submits a completed application to a producer without paying the first premium, coverage becomes effective when the

Answer:

Policy is delivered and the premium paid Question 4: Which of the following group life plan requires at least 75 percent of the eligible members to participate?

Answer:

Contributory

Question 5: A contract that has as its basic function the systematic liquidation of accumulated assets through periodic payments is called an

Answer:

annuity Question 6: A life policy is usually contestable due to material misrepresentation on the

application for a period of:

Answer:

• years

Question 7: Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a beneficiary on the death of the insured?

Answer:

Settlement options Question 8: If an insured commits suicide after the suicide clause in the insureds life insurance policy has expired, the insurer will take which of the following actions?

Answer:

Pay the death benefit Question 9: A policyowner names his wife as the primary beneficiary of his Universal Life policy on a revocable basis. He also names his three children as his secondary beneficiaries and his estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he dies, who will receive the policy proceeds?

Answer:

children Question 10: An individual appointed by an insurance company to solicit applications for a policy of insurance on its half is known as

Answer:

An insurance producer Question 11: A contract that promises to pay an income to an insured until his/her death is called

Answer:

life annuity

Question 12: An insured intentionally understates her age on her application for a life policy. At death, the insurer will take which of the following actions?

Answer:

pay a reduced death benefit based on the insured's actual age Question 13: All of the following policies may be examples of third party ownership except

Answer:

Modified Life Group Life Split-dollar Life Key Employee Life

Answer: Modified Life

Question 14: A client needs a substantial amount of protection but has limited financial resources. Which of the following insurance policies would BEST meet the client's needs?

Answer:

term life Question 15: An employer can deduct premium payments as an ordinary business expense for which of the following life coverages?

Answer:

group Question 16: In which of the following contracts is the death benefit called the principal sum?

Answer:

Accidental Death and Dismemberment (AD&D) Question 17: Which of the following policy provisions states that the application is part of the policy?

Answer:

Entire Contract

Question 18: Which of the following retirement plans is tax-qualified?

Answer:

Defined contribution

Question 19: The waiver of premium provision of a life policy allows the insurer to take which of the following actions?

Answer:

waive an insured's premiums if the insured becomes totally disabled before a certian age Question 20: When a producer submits an insurance application to the company, the producer must take all of the following actions except

Answer:

Submit a completed medical information report Question 21: Which of the following features allows an insurance policy to remain in force for a specified number of days beyond the premium due date?

Answer:

Grace period provision Question 22: Which of the following annuities would best suit the needs of a 35 year old factory worker who is concerned about the inflation and wants to establish a retirement plan?

Answer:

A flexible Premium Variable Annuity Question 23: A type of annuity in which the cash values are invested in securities is called:

Answer:

variable Question 24: An applicant for life insurance may question the validity and source of any consumer information developed under the

Answer:

Fair Credit Reporting Act (Insurance Information and Privacy Protection) Question 25: Which of the following statements about a renewable term policy is correct?

Answer:

It is renewable at the option of the insured