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PEARSON VUE COMPREHENSIVE EXAM Question and answers already passed 2023
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PEARSON VUE COMPREHENSIVE EXAM Question and answers already passed 2023
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PEARSON VUE COMPREHENSIVEEXAM
B. Survivor protection, estate creation and conservation, cash accumulation and liquidity
- correct answer What are the personal uses of life insurance?
A. Insured protection, estate creation and cash accumulation
B. Survivor protection, estate creation and conservation, cash accumulation and liquidity
C. Cash accumulation, estate depletion and liquidity
D. Beneficiary protection, liquidity, estate creation, and cash accumulation
D. Immediately after receiving written proof of loss - correct answer Upon the
submission of a death claim under a life insurance policy, when should the insurer pay
the policy benefit?
A. Within 2 years pf the date of loss
B. On the next anniversary of the policy
C. After the estate of the insured has been settled
D. Immediately after receiving written proof of loss
A. Admitted - correct answer Which of the following is the closet term to an
"authorized" insurer?
A. Admitted
B. Certified
C. Legal
D. Licensed
B. Interest only option - correct answer The policyowner wants to make sure that upon
his death, the life policy will pay a portion of the proceeds annually to his spouse, but
their children when they reach a certain age. Which settlement option should the
policyowner choose?
A. Life income with period certain
B. Interest only option
C. Joint and survivor
D. Fixed amount option
C. Distributions are taxable - correct answer When contributions to an immediate
annuity are made with before-tax dollars, which of the following is true of the
distributions?
A. There are no distributions
B. Distributions are nontaxable
C. Distributions are taxable
D. Distributions can't begin prior to age 70 1/2
D.Loss - correct answer Insurance is the transfer of
A. Risk
,B. Peril
C. Hazard
D. Loss
A.Pay the death benefit
Under the incontestability clause, once the policy has been in place for at least 2 years
then you can not deny any claims - correct answer An insured purchases a policy in
2008 and died in 2013. The insurance company discovers at that time that the insured
concealed information during the application process. What can they do?
A. Pay the death benefit
B. Pay a decreased death benefit
C. Refuse to pay the death benefit because of the fraud
D. Sue for the right to not pay the death benefit
D.Apparent
Agent who accepts a premium after the due date appears to the client to have authority
to prevent the lapse but in fact he does not - correct answer An agent accepts the
premium payment 35 days after it is due, telling the insured that there will not be a
problem keeping the policy in force. This is an example of what type of agent authority?
A. Express
B. Assumed
C. Implied
D. Apparent
A.The interest will continue to accumulate tax deferred
If contract holder dies before annuity date contracts interest is taxable. If the beneficiary
is a spouse then the interest is tax deferred - correct answer An annuitant dies before
the effective date of a purchased annuity. Assuming that the annuitant's wife is the
beneficiary , what will occur?
A. The interest will continue to accumulate tax deferred
B. Interest will become immediately taxable
C. Premiums will increase
D. Premiums will decrease
C. The annuitant will receive the higher of either the guaranteed minimum rate or
current rate - correct answer In a fixed annuity, which of the following is true regarding
the guaranteed interest rate on the investment?
A. The annuitant will only receive the guaranteed minimum specified in the contract
B. The annuitant will receive the lower of either the guaranteed minimum rate or current
rate
C. The annuitant will receive the higher of either the guaranteed minimum rate or
current rate
D. The annuitant will always receive the current interest rate
, A.Variable - correct answer An insured receives a monthly summary for his life
insurance policy. He notices that the cash value of his policy is significantly lower this
month then it was last month. What type of policy does the insured have?
A. Variable
B. Term
C. Securities
D. Stock
B. Payor Benefit Rider - correct answer Which of the following riders would not cause
the Death benefit to increase?
A. Guaranteed Insurability Rider
B. Payor Benefit Rider
C. Cost of Living Rider
D. Accidental Death Rider
D.They have a guaranteed minimum interest rate - correct answer Which of the
following is true for both equity indexed annuities and fixed annuities?
A. They invest on a conservative basis
B. Both tied to a equity index
C. Both are considered to be more risky than variable annuities
D. They have a guaranteed minimum interest rate
B.An individual not covered by an employer-sponsored plan who has earned income -
correct answer Who can make a fully deductible contribution to a traditional IRA?
A. A person who contributions are funded by a return on investment
B. An individual not covered by an employer-sponsored plan who has earned income
C. Anybody: all IRA contributions are fully deductible regardless of income level
D. Someone making contributions to an educational IRA
B.Cash surrender
Once the cash surrender value is paid the contract is over - correct answer Under
which nonforfeiture option does the company pay the surrender value and have no
further obligations to the policyowner?
A. Reduced paid-up
B. Cash surrender
C. Paid-up options
D. Extended term
B.Groups medical history - correct answer Which of the following are generally not
considered when underwriting group insurance?
A. Nature of Group
B. Groups medical history
C. Groups past claim experience
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