PEARSON VUE CASUALTY INSURANCE
STUDY PAPER 2026 FULLY SOLVED
EDITION WITH VERIFIED ANSWERS
⩥ Which of the circumstances is a business disability buy-sell policy
designed to help in the sale of business. Answer: Business owner
becoming disabled
⩥ A life insurance policy owner may sell their policy to a __________ in
order to receive a percentage of the policy's face value. Answer: Viatical
settlement provider
⩥ N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N purchase?
Answer: Fixed deferred
⩥ What is the primary factor that determines the benefits paid under a
disability income policy. Answer: Wages
⩥ This type of deductible provision states that should more than one
family member be involved in a common accident, or suffer the same
illness, only one individual deductible amount shall be applied Answer:
Common accident deductible
,⩥ What is the consideration given by a insurer in the consideration
clause of a life policy? Answer: Promise to pay a death benefit to a
named beneficiary
⩥ Why is an applicants required on a life insurance application? Answer:
To attest that the statements on the application are accurate to the best of
the applicant's knowledge
⩥ Which of these statements about guaranteed insurability option rider
is not trye? Answer: Evidence of insurability is required when the option
is exercised
⩥ Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of coverage
at predetermined times without requiring to provide evidence of
insurability. What kind of rider is this? Answer: Guaranteed insurability
rider
⩥ J has an Accidental Death and Dismemberment policy with a principal
sum of $50,000. While trimming the hedges, J cuts off one of his
fingers. What is the MAXIMUM J will receive from his policy? Answer:
$25,000
⩥ Medicaid was designed to assist individuals who are Answer: Below a
specific income limit
, ⩥ K made a fraudulent statement on her health insurance policy
application. In the event of a claim on this policy, the insurance
company is required to pay Answer: Nothing
⩥ An application for Medicare Supplement coverage may NOT be
denied by the insurer if the application was submitted within ________
month(s) after the applicant reaches the age of 65. Answer: 6
⩥ A "reimbursement policy" pays what amount of covered Long-term
care expenses? Answer: Actual covered expenses up to the daily
maximum
⩥ An individual working part-time has an annual income of $25,000. If
this individual has an IRA, what is the maximum deductible IRA
contribution allowable? Answer: $6,000
⩥ Which of the following provisions specifies how long a policyowner's
health coverage will remain in effect if the policyowner does not pay the
premium when it is due? Answer: Grace period
⩥ Which settlement option pays a stated amount to an annuitant, but no
residual value to a beneficiary? Answer: Life income
⩥ K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all the
STUDY PAPER 2026 FULLY SOLVED
EDITION WITH VERIFIED ANSWERS
⩥ Which of the circumstances is a business disability buy-sell policy
designed to help in the sale of business. Answer: Business owner
becoming disabled
⩥ A life insurance policy owner may sell their policy to a __________ in
order to receive a percentage of the policy's face value. Answer: Viatical
settlement provider
⩥ N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N purchase?
Answer: Fixed deferred
⩥ What is the primary factor that determines the benefits paid under a
disability income policy. Answer: Wages
⩥ This type of deductible provision states that should more than one
family member be involved in a common accident, or suffer the same
illness, only one individual deductible amount shall be applied Answer:
Common accident deductible
,⩥ What is the consideration given by a insurer in the consideration
clause of a life policy? Answer: Promise to pay a death benefit to a
named beneficiary
⩥ Why is an applicants required on a life insurance application? Answer:
To attest that the statements on the application are accurate to the best of
the applicant's knowledge
⩥ Which of these statements about guaranteed insurability option rider
is not trye? Answer: Evidence of insurability is required when the option
is exercised
⩥ Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of coverage
at predetermined times without requiring to provide evidence of
insurability. What kind of rider is this? Answer: Guaranteed insurability
rider
⩥ J has an Accidental Death and Dismemberment policy with a principal
sum of $50,000. While trimming the hedges, J cuts off one of his
fingers. What is the MAXIMUM J will receive from his policy? Answer:
$25,000
⩥ Medicaid was designed to assist individuals who are Answer: Below a
specific income limit
, ⩥ K made a fraudulent statement on her health insurance policy
application. In the event of a claim on this policy, the insurance
company is required to pay Answer: Nothing
⩥ An application for Medicare Supplement coverage may NOT be
denied by the insurer if the application was submitted within ________
month(s) after the applicant reaches the age of 65. Answer: 6
⩥ A "reimbursement policy" pays what amount of covered Long-term
care expenses? Answer: Actual covered expenses up to the daily
maximum
⩥ An individual working part-time has an annual income of $25,000. If
this individual has an IRA, what is the maximum deductible IRA
contribution allowable? Answer: $6,000
⩥ Which of the following provisions specifies how long a policyowner's
health coverage will remain in effect if the policyowner does not pay the
premium when it is due? Answer: Grace period
⩥ Which settlement option pays a stated amount to an annuitant, but no
residual value to a beneficiary? Answer: Life income
⩥ K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all the
