Exam (elaborations)
PEARSON VUE LIFE INSURANCE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS
- Course
- Institution
PEARSON VUE LIFE INSURANCE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS
[Show more]
Content preview
PEARSON VUE LIFE INSURANCEPRACTICE EXAM QUESTIONS WITH
CORRECT ANSWERS
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:
A.irrevocable beneficiary
B.revocable beneficiary
C.secondary beneficiary - Answer-B
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an:
A.indemnity contract
B.investment contract
C.endowment
D.annuity - Answer-D
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
An employer can deduct premium payments as an ordinary business expense for which
of the following life coverages?
A.Buy and Sell Agreements
B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary - Answer-B
, 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?
A.Incontestability
B.Insurable interest
C.Consideration
D.Risk classification - Answer-D
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?
A.Family Income rider
B.Survivorship Life policy
C.Joint Life policy
D.Modified Life policy - Answer-A
Which of the following statements is CORRECT about Group Life conversion
privileges?
A.Under the COBRA law, a departing employee may elect to remain a member of the
Group Life plan for a limited period of time.
B.Death during the conversion period is covered even if the departing employee chose
not to convert the policy.
C.A departing employee must individually pay the premium if the employee elects to be
covered during the conversion period.
D.If a departing employee elects to convert a life insurance policy, the insurer must offer
Term insurance as one of the choices. - Answer-B
Which of the following policies is an interest-sensitive form of permanent protection?
A.Universal Life
B.Limited-Pay Life
C.Graded Premium Whole Life
D.Modified Whole Life - Answer-A
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now