Pearson Vue Life Insurance Practice Exam Questions
with correct answers
QUESTION>A life policy is usually contestable due to material misrepresentation on the application for a
period of:
A.30 days
B.6 months
C.2 years
D.5 years - CORRECT ANSWER~C
QUESTION>Which of the following statements is CORRECT about the Paid-Up Additions in a
participating Whole Life policy?
A.They are subject to underwriting approval.
B.They do not generate dividends.
C.They are considered Term policies.
D.They are purchased on an attained age basis. - CORRECT ANSWER~D
QUESTION>In which of the following contracts is the Death benefit called the principal sum?
A.Survivorship Annuity
,B.Accidental Death and Dismemberment (AD&D)
C.Decreasing Term
D.Joint Life - CORRECT ANSWER~B
QUESTION>At which of the following times MUST a life insurance applicant be informed of their rights
under the Fair Credit Reporting Act?
A.During the initial appointment
B.When the insured's application is completed
C.When the policy is delivery
D.Upon initial premium receipt - CORRECT ANSWER~C
QUESTION>R has just graduated from law school. R knows that R's future earnings will be much higher
than they are now, but wants to purchase a permanent policy now to cover future needs. Which of the
following policies would BEST suit R's needs?
A.Return of Premium Life
B.Life Paid-Up at 65
C.Modified Whole Life
D.Annual Renewable Term - CORRECT ANSWER~C
, QUESTION >P wants to name her husband as the beneficiary of her life policy. However, she wishes to
retain all of the rights of ownership. P should have her husband named as the:
A.irrevocable beneficiary
B.revocable beneficiary
C.secondary beneficiary - CORRECT ANSWER~B
QUESTION>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 - CORRECT ANSWER~D
QUESTION>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?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
with correct answers
QUESTION>A life policy is usually contestable due to material misrepresentation on the application for a
period of:
A.30 days
B.6 months
C.2 years
D.5 years - CORRECT ANSWER~C
QUESTION>Which of the following statements is CORRECT about the Paid-Up Additions in a
participating Whole Life policy?
A.They are subject to underwriting approval.
B.They do not generate dividends.
C.They are considered Term policies.
D.They are purchased on an attained age basis. - CORRECT ANSWER~D
QUESTION>In which of the following contracts is the Death benefit called the principal sum?
A.Survivorship Annuity
,B.Accidental Death and Dismemberment (AD&D)
C.Decreasing Term
D.Joint Life - CORRECT ANSWER~B
QUESTION>At which of the following times MUST a life insurance applicant be informed of their rights
under the Fair Credit Reporting Act?
A.During the initial appointment
B.When the insured's application is completed
C.When the policy is delivery
D.Upon initial premium receipt - CORRECT ANSWER~C
QUESTION>R has just graduated from law school. R knows that R's future earnings will be much higher
than they are now, but wants to purchase a permanent policy now to cover future needs. Which of the
following policies would BEST suit R's needs?
A.Return of Premium Life
B.Life Paid-Up at 65
C.Modified Whole Life
D.Annual Renewable Term - CORRECT ANSWER~C
, QUESTION >P wants to name her husband as the beneficiary of her life policy. However, she wishes to
retain all of the rights of ownership. P should have her husband named as the:
A.irrevocable beneficiary
B.revocable beneficiary
C.secondary beneficiary - CORRECT ANSWER~B
QUESTION>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 - CORRECT ANSWER~D
QUESTION>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?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
