PEARSON VUE LIFE INSURANCE PRACTICE EXAM

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PEARSON VUE LIFE INSURANCE PRACTICE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 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 C.pay back interest on any outstanding policy loan D.pay all past-due premiums

Answer:

B Question 2: 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.

Answer:

B Question 3: 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?A.Nonforfeiture Options B.Settlement Options C.Conditions

D.Modes of Payment

Answer:

B Question 4: R has just graduated from law school. R knows that R's future earnings will be much higher than they are now, but wants to purchase a permanent policy now to cover future needs. Which of the following policies would BEST suit R's needs?A.Return of Premium Life B.Life Paid-Up at 65 C.Modified Whole Life D.Annual Renewable Term

Answer:

C Question 5: In life insurance, the Free Look provision begins on the: A.effective date of coverage B.policy delivery date C.date of application D.date that the insurer issues the policy

Answer:

B Question 6: Which of the following statements is CORRECT about the Paid-Up Additions in a participating Whole Life policy?A.They are subject to underwriting approval.B.They do not generate dividends.C.They are considered Term policies.D.They are purchased on an attained age basis.

Answer:

D Question 7: If an applicant for life insurance submits a completed application to a producer

without paying the first premium, coverage becomes effective when the:

A.producer accepts the application B.applicant successfully completes the medical examination C.insurer approves the application

Answer:

D

Question 8: Which of the following annuities would BEST suit the needs of a 35-year-old factory worker who is concerned about inflation and wants to establish a retirement plan?A.A Single Premium Deferred Annuity B.A Single Premium Immediate Annuity C.A Level Premium Fixed Annuity D.A Flexible Premium Variable Annuity

Answer:

D Question 9: Which of the following features allows an insurance policy to remain in force for a specified number of days beyond the premium due date?A.Reinstatement provision B.Nonforfeiture Option C.Grace Period provision D.Consideration clause

Answer:

C Question 10: An applicant for life insurance may question the validity and source of any consumer information developed under the A.Medical Information Bureau Disclosure Act B.Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) C.Equal Employment Opportunity Act D.Medicare Act

Answer:

B Question 11: Which of the following statements about a Renewable Term policy is CORRECT?A.It is renewable at the option of the insurer.B.It is renewable at the option of the insured.C.It is renewable at the option of the insurer, with proof of insurability.D.It is renewable at the option of the insured, with proof of insurability.

Answer:

B

Question 12: A contract that promises to pay an income to an insured until his/her death is

called:

A.Family Income B.Modified Endowment C.Survivorship Life D.Life Annuity

Answer:

D Question 13: Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another?A.Nonforfeiture B.Endorsement C.Transfer for value D.Assignment

Answer:

D Question 14: In which of the following contracts is the Death benefit called the principal sum?A.Survivorship Annuity B.Accidental Death and Dismemberment (AD&D) C.Decreasing Term D.Joint Life

Answer:

B Question 15: Which of the following policy provisions states that the application is part of the policy?A.Entire contract B.Ownership clause C.Nonforfeiture option C D.Assignment clause

Answer:

A