Exam (elaborations)
PEARSON VUE COMPREHENSIVE EXAM
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PEARSON VUE COMPREHENSIVE EXAM
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Name: Score:115 Multiple choice questions
Definition 1 of 115
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premium must be paid
For 20 years
Until the policyowners age 65
Until the policyowners age 100, when the policy matures
For 20 years or until death, whichever occurs first
Definition 2 of 115
Which of the following is a true characteristic of a Variable Universal Life Policy.
The insurer bears all risks in accumulating cash value
The policy has a fixed premium schedule
As long as there is sufficient cash value to cover policy expenses due, the insured is not
required to pay the planned premium
The policy requires only a life license to sell
Definition 3 of 115
Which of the following is a policy not issued with a rating?
Lien Plan
Flat Rate
Tabular Rate
Preferred Rate
,Definition 4 of 115
An insurer considers all of the following when determining the fixed annuity payments, except:
The accumulation amount
Stock market values
Interest rate
Expenses
Definition 5 of 115
In order to make sure that a creditor of the insured is not paid more than the outstanding loan
at time of claim, the policyowner should:
Specify a dollar amount the creditor should receive at time of claim
Indicate the percentage of the face amount that creditor will receive
Name the creditor as a primary beneficiary
Purchase a decreasing benefit policy that matches the loan repayment schedule
Definition 6 of 115
A type of annuity in which the cash values are invested in securities is called:
Variable
Deferred
Fixed
Joint and survivorship
Definition 7 of 115
_____________ is/are not considered material to the policy issuance.
Recent major inpatient hospital surgeries
Hazardous occupation and/or hobbies
12 driving under the influence tickets within 6 months prior to application
Age and/or gender
,Definition 8 of 115
Under the Modified Endowment Contract rules the 7-Pay Test is defined as:
The comparison of premiums paid during the first 7 years with the net level premiums
that would have been paid on a 7 year pay whole life of the same death benefit
The cash value at the end of the 7 exceeds the total of premiums paid
Any life insurance policy that endows in 7 years
The least amount of premium required to be paid in the first 7 years to maintain the
policy to age 70
Definition 9 of 115
Which of the following would least likely be considered a legitimate need that would be paid
by insurance proceeds?
Vacation travel expenses
Travel expenses for family members to come to the funeral
Day care
Debt cancelation
Definition 10 of 115
The Social Security Survivor Benefit is the amount of _________ that may be expected from the
Primary Insurance Amount (PIA) of the insured.
Death benefit proceeds
Income
Tax Refund
Indemnification
, Definition 11 of 115
How many hours of continuing education are required to maintain an insurance license in
Colorado?
24 hours every 2 years
16 hours every 2 years
24 hours annually
16 hours annually
Definition 12 of 115
James is nearing retirement and has accumulated $175,000 in an annuity. He wants the largest
possible monthly benefit for as long as he lives. Which option should he choose?
Fixed Amount
Life Income with Refund
Joint Life
Life Income
Definition 13 of 115
A partial withdrawal is considered _____________.
A partial surrender of the policy
A policy loan
A temporary event
A one-time event
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