Pearson Vue Insurance Practice Exam
‘
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 -
ANSSex
In life insurance, insurance interest must exist at the time the - ANSProducer writes an
application on a proposed insured
Which of the following statements is NOT correct about representations? - ANSThey 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? - ANSThe insured's signed statement of
continued good health
Which of the following retirement plans is tax-qualified? - ANSDefined contribution
Which of the following statements is correct about the paid-up additions in a participating
whole life policy? - ANSThey are purchased on an attained age basis
The right to change a beneficiary designation is reserved for the: - ANSPolicyowner
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? - ANSSettlement 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? -
ANSbuy-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of the
following actions? - ANSwaive an insured's premiums if the insured becomes totally disabled
before a certian age
A life insurance application is incomplete if it is missing the signature of which of the
following? - ANSThe proposed adult insured
Which of the following statements is correct about group life conversion privileges? -
ANSDeath during the conversion period is covered if the departing employee chose not to
conver the policy.
In the event of an insured's death, which of the following provides an income for the family
during a designated period of time followed by a lump sum death benefit? - ANSFamily
income rider
, A policyowner names his wife as the primary beneficiary of his Universal Life policy on a
revocable basis. He also names his three children as his secondary beneficiaries and his
estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he
dies, who will receive the policy proceeds? - ANSchildren
A contract that has as its basic function the systematic liquidation of accumulated assets
through periodic payments is called an - ANSannuity
All of the following policies may be examples of third party ownership except - ANSModified
Life
Group Life
Split-dollar Life
Key Employee Life
Answer: Modified Life
Which of the following group life plan requires at least 75 percent of the eligible members to
participate? - ANSContributory
Which of the following features allows an insurance policy to remain in force for a specified
number of days beyond the premium due date? - ANSGrace period provision
In which of the following contracts is the death benefit called the principal sum? -
ANSAccidental Death and Dismemberment (AD&D)
The primary reason for selecting a variable whole life policy instead of a traditional whole life
policy is that the variable whole life policy - ANSHas the potential to earn a higher rate of
return on the cash value
If an applicant for life insurance submits a completed application to a producer without
paying the first premium, coverage becomes effective when the - ANSPolicy is delivered and
the premium paid
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 - ANS9500
The primary purpose of an inspection report is to assess an applicants - ANSpersonal
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? - ANSA
flexible Premium Variable Annuity
A life policy is usually contestable due to material misrepresentation on the application for a
period of: - ANS2 years
‘
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 -
ANSSex
In life insurance, insurance interest must exist at the time the - ANSProducer writes an
application on a proposed insured
Which of the following statements is NOT correct about representations? - ANSThey 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? - ANSThe insured's signed statement of
continued good health
Which of the following retirement plans is tax-qualified? - ANSDefined contribution
Which of the following statements is correct about the paid-up additions in a participating
whole life policy? - ANSThey are purchased on an attained age basis
The right to change a beneficiary designation is reserved for the: - ANSPolicyowner
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? - ANSSettlement 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? -
ANSbuy-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of the
following actions? - ANSwaive an insured's premiums if the insured becomes totally disabled
before a certian age
A life insurance application is incomplete if it is missing the signature of which of the
following? - ANSThe proposed adult insured
Which of the following statements is correct about group life conversion privileges? -
ANSDeath during the conversion period is covered if the departing employee chose not to
conver the policy.
In the event of an insured's death, which of the following provides an income for the family
during a designated period of time followed by a lump sum death benefit? - ANSFamily
income rider
, A policyowner names his wife as the primary beneficiary of his Universal Life policy on a
revocable basis. He also names his three children as his secondary beneficiaries and his
estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he
dies, who will receive the policy proceeds? - ANSchildren
A contract that has as its basic function the systematic liquidation of accumulated assets
through periodic payments is called an - ANSannuity
All of the following policies may be examples of third party ownership except - ANSModified
Life
Group Life
Split-dollar Life
Key Employee Life
Answer: Modified Life
Which of the following group life plan requires at least 75 percent of the eligible members to
participate? - ANSContributory
Which of the following features allows an insurance policy to remain in force for a specified
number of days beyond the premium due date? - ANSGrace period provision
In which of the following contracts is the death benefit called the principal sum? -
ANSAccidental Death and Dismemberment (AD&D)
The primary reason for selecting a variable whole life policy instead of a traditional whole life
policy is that the variable whole life policy - ANSHas the potential to earn a higher rate of
return on the cash value
If an applicant for life insurance submits a completed application to a producer without
paying the first premium, coverage becomes effective when the - ANSPolicy is delivered and
the premium paid
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 - ANS9500
The primary purpose of an inspection report is to assess an applicants - ANSpersonal
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? - ANSA
flexible Premium Variable Annuity
A life policy is usually contestable due to material misrepresentation on the application for a
period of: - ANS2 years
