PEARSON VUE TEST 2026 COMPLETE
QUESTIONS AND ANSWERS GRADED A+
◉ M completes an application for life insurance but does not pay the
initial premium. All of these actions must occur before M's policy
goes into effect, EXCEPT: Answer: free-look period has expired
◉ What does the insuring agreement in a Life insurance contract
establish? Answer: • An insurer's basic promise
The insuring agreement in a Life insurance contract establishes the
basic promise of the insurance company
◉ Group Life policies in Florida are required to contain a conversion
privilege that allows for conversion Answer: • to an individual policy
for a stated period of time
In Florida, Group Life policies must contain
a conversion privilege that allows for conversion to an individual
policy for a specified period of time.
◉ _______ of personal life insurance premiums is usually deductible
for federal income tax purposes. Answer: 0%
,In general personal life insurance premiums are NOT deductible for
federal income tax purnoses
◉ When a policyowner cash surrenders a Universal Life insurance
policy in it's early years, this may be considered a red flag for a(n):
Answer: Anti-Money Laundering violation
When a policy-owner cash surrenders a Universal Life insurance
policy in it's early ears, this may be considered a red flag for an Anti-
Money Laundering violation.
◉ The agreement in a life insurance contract that states a specific
sum of money will be paid to a
designated person upon an insured's death is called a(n): Answer: •
Insurina agreement
◉ The annuity that represents the largest possible monthly payment
to an individual annuitant is a(n): Answer: Straight Life annuity
◉ A producer does not have the athourity to a call a policy or waive
any of is provisions". The health provision that best describes this
statement is called the.. Answer: Entire Contract
,◉ Which of the following types of organizations are prepaid group
health plans, where members pay in advance for the services of
participating physicians and hospitals that have agreements?
Answer: HMO
◉ A policy loan is made possible by which of these life insurance
policy features? Answer: Cash value provision
◉ L takes out a life insurance policy and dies 10 years later. During
the claim process, the insurer discovers that L had understated her
age on the application. Under the Misstatement of Age provision, the
insurer will.. Answer: adjust the death benefit to a reduced amount |
◉ K is shopping for a permanent life insurance policy that will offer
her the MOST protection per dollar of annual premium. Which of
these policies best fits her needs? Answer: Straight Life
◉ Which of the following situations does a Critical Illness plan
cover? Answer: Loukemia
◉ A life policy loan in Florida cannot charge a fixed rate of interest
higher than Answer: 10%
◉ Which of these factors do NOT play a role in the underwriting of a
life insurance policy? Answer: Marital status
, ◉ The individual who provides general medical care for a patient as
well as the referral for specialized care is known as a: Answer:
Primary Care Physician
◉ What is the underlying concept regarding level premiums?
Answer: The early years are charged more than what is needed
◉ What is the required minimum percentage of employee
participation for a noncontributory group health insurance plan
according to Florida Law? Answer: 0%
◉ Which of the following Life insurance policies combine term
insurance with an investment element? Answer: • Universal Life
◉ In Florida, deceptive advertising is considered to be Answer: a
form of misrepresentation
◉ A prepaid application for individual Disability Income insurance
was recently submitted to an insurer. When the insurer received the
MIB report, the report showed that the applicant had suffered a
stroke 18 months ago, something that was not disclosed on the
application. Which of the following actions would the insurance
company NOT take? Answer: Send a notice to the MiB that the
applicant was declined
QUESTIONS AND ANSWERS GRADED A+
◉ M completes an application for life insurance but does not pay the
initial premium. All of these actions must occur before M's policy
goes into effect, EXCEPT: Answer: free-look period has expired
◉ What does the insuring agreement in a Life insurance contract
establish? Answer: • An insurer's basic promise
The insuring agreement in a Life insurance contract establishes the
basic promise of the insurance company
◉ Group Life policies in Florida are required to contain a conversion
privilege that allows for conversion Answer: • to an individual policy
for a stated period of time
In Florida, Group Life policies must contain
a conversion privilege that allows for conversion to an individual
policy for a specified period of time.
◉ _______ of personal life insurance premiums is usually deductible
for federal income tax purposes. Answer: 0%
,In general personal life insurance premiums are NOT deductible for
federal income tax purnoses
◉ When a policyowner cash surrenders a Universal Life insurance
policy in it's early years, this may be considered a red flag for a(n):
Answer: Anti-Money Laundering violation
When a policy-owner cash surrenders a Universal Life insurance
policy in it's early ears, this may be considered a red flag for an Anti-
Money Laundering violation.
◉ The agreement in a life insurance contract that states a specific
sum of money will be paid to a
designated person upon an insured's death is called a(n): Answer: •
Insurina agreement
◉ The annuity that represents the largest possible monthly payment
to an individual annuitant is a(n): Answer: Straight Life annuity
◉ A producer does not have the athourity to a call a policy or waive
any of is provisions". The health provision that best describes this
statement is called the.. Answer: Entire Contract
,◉ Which of the following types of organizations are prepaid group
health plans, where members pay in advance for the services of
participating physicians and hospitals that have agreements?
Answer: HMO
◉ A policy loan is made possible by which of these life insurance
policy features? Answer: Cash value provision
◉ L takes out a life insurance policy and dies 10 years later. During
the claim process, the insurer discovers that L had understated her
age on the application. Under the Misstatement of Age provision, the
insurer will.. Answer: adjust the death benefit to a reduced amount |
◉ K is shopping for a permanent life insurance policy that will offer
her the MOST protection per dollar of annual premium. Which of
these policies best fits her needs? Answer: Straight Life
◉ Which of the following situations does a Critical Illness plan
cover? Answer: Loukemia
◉ A life policy loan in Florida cannot charge a fixed rate of interest
higher than Answer: 10%
◉ Which of these factors do NOT play a role in the underwriting of a
life insurance policy? Answer: Marital status
, ◉ The individual who provides general medical care for a patient as
well as the referral for specialized care is known as a: Answer:
Primary Care Physician
◉ What is the underlying concept regarding level premiums?
Answer: The early years are charged more than what is needed
◉ What is the required minimum percentage of employee
participation for a noncontributory group health insurance plan
according to Florida Law? Answer: 0%
◉ Which of the following Life insurance policies combine term
insurance with an investment element? Answer: • Universal Life
◉ In Florida, deceptive advertising is considered to be Answer: a
form of misrepresentation
◉ A prepaid application for individual Disability Income insurance
was recently submitted to an insurer. When the insurer received the
MIB report, the report showed that the applicant had suffered a
stroke 18 months ago, something that was not disclosed on the
application. Which of the following actions would the insurance
company NOT take? Answer: Send a notice to the MiB that the
applicant was declined
