PEARSON VUE INSURANCE PRACTICE Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

Under the social security retirement benefits, all of the following factors will influence how much a retiring individual will receive as a monthly income benefit except the individual's Correct Answer: Sex In life insurance, insurance interest must exist at the time the Correct Answer: Producer writes an application on a proposed insured Which of the following statements is NOT correct about representations? Correct Answer: They are true in every respect 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? Correct Answer: The insured's signed statement of continued good health 2 Which of the following retirement plans is tax-qualified? Correct Answer: Defined contribution Which of the following statements is correct about the paid-up additions in a participating whole life policy? Correct Answer: They are purchased on an attained age basis The right to change a beneficiary designation is reserved for the: Correct Answer: Policyowner Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a beneficiary on the death of the insured? Correct Answer: Settlement options 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? Correct Answer: buy-sell agreement The waiver of premium provision of a life policy allows the insurer to take which of the following actions? Correct Answer: waive an insured's premiums if the insured becomes totally disabled before a certian age