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Pearson Vue Life Insurance Practice Exam New Update
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Pearson Vue Life Insurance Practice Exam New UpdateP wants to name her husband as the beneficiary of her life policy. However she wants to
keep all of the rights of ownership. P should have her husband named as the:
A.irrevocable beneficiary
B.revocable beneficiary
C.contingent 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. Upon 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
For which of the following life coverages may an employer deduct premium payments as
an ordinary business expense?
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 accepts applications from identical twins who wish to purchase the identical
policy type and amount. The insurer issues the policies as applied for but charges one of
the policies 25 percent more in premium. The reason for the disparate premiums is most
likely the result of which of the following?
A.Incontestability
B.Insurable interest
C.Consideration
D.Risk classification - Answer D
Which of the following, upon the death of an insured, provides an income to the family
over a stated 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. An employee, upon separation, can elect to continue membership in the Group Life
plan under COBRA for a limited period.
B. Death during the conversion period is covered though the separating employee did not
elect to convert the policy.
C. The separating employee has elected to be covered during the conversion period and
hence he has to pay the premium individually.
D. If a terminating employee wishes to convert a life insurance policy, the insurance
company must provide 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
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