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Pearson Vue Life Insurance Practice Exam
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Pearson Vue Life Insurance Practice Exam
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Name: Score:50 Multiple choice questions
Term 1 of 50
All of the following policies may be examples of third party ownership EXCEPT:
Modified Life
Group Life
Split-dollar Life
Key Employee Life
Term 2 of 50
Which of the following group life plans requires at least 75 percent of the eligible members to
participate?
Contributory
Noncontributory
Participating
Nonparticipating
Term 3 of 50
Which of the following statements is CORRECT about the Paid-Up Additions in a participating
Whole Life policy?
They are subject to underwriting approval.
They do not generate dividends.
They are considered Term policies.
They are purchased on an attained age basis.
,Term 4 of 50
Which of the following statements about a Renewable Term policy is CORRECT?
It is renewable at the option of the insurer.
It is renewable at the option of the insured.
It is renewable at the option of the insurer, with proof of insurability.
It is renewable at the option of the insured, with proof of insurability.
Term 5 of 50
If an insured commits suicide after the Suicide clause in the insured's life insurance policy has
expired, the insurer will take which of the following actions?
Refuse to pay the Death benefit or refund any premiums
Refund only the premiums paid
Refund the premiums paid plus interest
Pay the Death benefit
Term 6 of 50
The right to change a beneficiary designation is reserved for the:
beneficiary
policyowner
insurer
insured
,Term 7 of 50
Which of the following statements is CORRECT about Group Life conversion privileges?
Under the COBRA law, a departing employee may elect to remain a member of the
Group Life plan for a limited period of time.
Death during the conversion period is covered even if the departing employee chose
not to convert the policy.
A departing employee must individually pay the premium if the employee elects to be
covered during the conversion period.
If a departing employee elects to convert a life insurance policy, the insurer must offer
Term insurance as one of the choices.
Term 8 of 50
A life policy is usually contestable due to material misrepresentation on the application for a
period of:
30 days
6 months
2 years
5 years
Term 9 of 50
Which of the following policy provisions states that the application is part of the policy?
Entire contract
Ownership clause
Nonforfeiture option
C
Assignment clause
, Term 10 of 50
Two business partners own life insurance on each other. If one partner dies, which of the
following contracts will allow the other partner to buy 100 percent of the business interest?
Buy and Sell Agreement
Key Employee Life policy
Survivorship Life
Joint and Several Annuity
Term 11 of 50
An insured intentionally understates her age on her application for a life policy. At death, the
insurer will take which of the following actions?
Refuse to pay the claim based on material misrepresentation on the application
Pay the face amount of the policy if the death occurred after the end of the
incontestable period
Pay a reduced Death benefit based on the insured's actual age
Pay the stated Death benefit less the unpaid premium owed to the company as a result
of the understated age.
Term 12 of 50
If an Adjustable Life policyowner makes an additional premium payment, the policy may be
affected in all of the following ways EXCEPT the:
premium paying period may decrease
value of the Nonforfeiture Options may decrease
face amount may increase
length of coverage may increase
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