PearsonVue Life Insurance Practice Exam Questions With 100% Correct Answers

PearsonVue Life Insurance Practice Exam Questions With 100% Correct Answers The PRIMARY reason for selecting a Variable Whole Life policy instead of a traditional Whole Life policy is that the Variable Whole Life policy: - answerhas the potential to earn a higher rate of return on the cash value Which of the following statements is CORRECT about the Paid-Up Additions in a participating Whole Life policy? - answerThey are purchased on an attained age basis. Which of the following statements is CORRECT about Group Life conversion privileges? - answerDeath during the conversion period is covered even if the departing employee chose not to convert the policy. If an insured commits suicide after the Suicide clause in the insured's life insurance policy has expired, the insurer will take which of the following actions? - answerPay the Death benefit If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase: - answeradditional coverage at specified ages If life insurance policy applicant is classified as a substandard risk, the insurance company will MOST likely: - answercharge an extra premium 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: - answerrevocable beneficiary Which of the following features allows an insurance policy to remain in force for a specified number of days beyond the premium due date? - answerGrace Period provision In life insurance, insurable interest must exist at the time the: - answerproducer writes an application on a proposed insured Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another? - answerAssignment Which of the following statements about a Renewable Term policy is CORRECT? - answerIt is renewable at the option of the insured. 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? - answerBuy and Sell Agreement An insured intentionally understates her age on her application for a life policy. At death, the insurer will take which of the following actions? - answerPay a reduced Death benefit based on the insured's actual age An applicant's statements on an application are considered to be legal: - answerrepresentations A contract that promises to pay an income to an insured until his/her death is called: - answerLife Annuity An employer can deduct premium payments as an ordinary business expense for which of the following life coverages? - answerGroup Which of the following annuities would BE