Pearson Vue Insurance Practice Exam Verified Answers
1. Which of the following factors will NOT influence a retiring individual's monthly income benefit from
Social Security retirement benefits?
Answer: Sex
2. What must exist at the time a producer writes an application on a proposed insured in life insurance?
Answer: Insurance interest
3. Which of the following statements is NOT true about representations?
Answer: They are true in every respect
4. When an insurance producer takes an application for a life insurance policy, but does not collect the
initial premium, what must they do on delivery of the policy to the proposed insured?
Answer: Collect the initial premium and the insured's signed statement of continued good health
5. Which of the following retirement plans is tax-qualified?
Answer: Defined contribution
6. What is the purpose of the waiver of premium provision in a life policy?
Answer: Waive an insured's premiums if the insured becomes totally disabled before a certain age
7. What provision in a life policy allows an insurer to take action?
, Answer: Waive an insured's premiums if the insured becomes totally disabled before a certain age
8. A life insurance application is incomplete if it lacks the signature of which party?
Answer: The proposed adult insured
9. What provides an income for the family during a designated period followed by a lump sum death
benefit?
Answer: Family income rider
10. If an insured's wife predeceases him, and then he dies, who will receive the policy proceeds?
Answer: Children
An insured owns $10,000 policy with a $4000 cash value and a 6 percent interest rate. On January 1, the
insured borrows $500 and pays one years interest in advance. During the year, the insured does not
repay any part of the loan or interest. If the insured dies on December 31, the beneficiary will be
entitled to a maximum of ✅9500
The primary purpose of an inspection report is to assess an applicants ✅personal characteristics
Which of the following annuities would best suit the needs of a 35 year old factory worker who is
concerned about the inflation and wants to establish a retirement plan? ✅A flexible Premium Variable
Annuity
A life policy is usually contestable due to material misrepresentation on the application for a period of:
✅2 years
An employer can deduct premium payments as an ordinary business expense for which of the following
life coverages? ✅group
1. Which of the following factors will NOT influence a retiring individual's monthly income benefit from
Social Security retirement benefits?
Answer: Sex
2. What must exist at the time a producer writes an application on a proposed insured in life insurance?
Answer: Insurance interest
3. Which of the following statements is NOT true about representations?
Answer: They are true in every respect
4. When an insurance producer takes an application for a life insurance policy, but does not collect the
initial premium, what must they do on delivery of the policy to the proposed insured?
Answer: Collect the initial premium and the insured's signed statement of continued good health
5. Which of the following retirement plans is tax-qualified?
Answer: Defined contribution
6. What is the purpose of the waiver of premium provision in a life policy?
Answer: Waive an insured's premiums if the insured becomes totally disabled before a certain age
7. What provision in a life policy allows an insurer to take action?
, Answer: Waive an insured's premiums if the insured becomes totally disabled before a certain age
8. A life insurance application is incomplete if it lacks the signature of which party?
Answer: The proposed adult insured
9. What provides an income for the family during a designated period followed by a lump sum death
benefit?
Answer: Family income rider
10. If an insured's wife predeceases him, and then he dies, who will receive the policy proceeds?
Answer: Children
An insured owns $10,000 policy with a $4000 cash value and a 6 percent interest rate. On January 1, the
insured borrows $500 and pays one years interest in advance. During the year, the insured does not
repay any part of the loan or interest. If the insured dies on December 31, the beneficiary will be
entitled to a maximum of ✅9500
The primary purpose of an inspection report is to assess an applicants ✅personal characteristics
Which of the following annuities would best suit the needs of a 35 year old factory worker who is
concerned about the inflation and wants to establish a retirement plan? ✅A flexible Premium Variable
Annuity
A life policy is usually contestable due to material misrepresentation on the application for a period of:
✅2 years
An employer can deduct premium payments as an ordinary business expense for which of the following
life coverages? ✅group
