Pearson Vue Life + Health Insurance Practice Exam Questions and Answers 2024

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 - B 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 - D 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 D. A copy of the temporary insurance agreement that covered the period between the application date and the delivery date. - B An employer can deduct premium payments as an ordinary business expense for which of the following life coverages? A. Buy and Sell Agreements B. Group C. Key Employee D. Joint Life, if the business is named as the beneficiary - B A producer takes applications from identical twins who want to buy the same type of policy in the same amount. The insurer issues the policies as applied for, but charges a 25 percent higher premium for one of the policies. The difference in premiums is probably due to which of the following factors? A. Incontestability B. Insurable interest C. Consideration D. Risk classification - D 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? A. Family Income rider B. Survivorship Life policy C. Joint Life policy D. Modified Life policy - A Which of the following statements is CORRECT about Group Life conversion privileges? A. Under the COBRA law, a departing employee may elect to remain a member of the Group Life plan for a limited period of time. B. Death during the conversion period is covered even if the departing employee chose not to convert the policy. C. A departing employee must individually pay the premium if the employee elects to be covered during the conversion period. D .If a departing employee elects to convert a life insurance policy, the insurer must offer Term insurance as one of the choices. - B Which of the following policies is an interest-sensitive form of permanent protection? A. Universal Life B. Limited-Pay Life C. Graded Premium Whole Life D. Modified Whole Life - A Reinstatement of a life insurance policy requires an insured to take all of the following actions EXCEPT: A. provide evidence of insurability B. make collateral assignment to the insurer C. pay back interest on any outstanding policy loan D. pay all past-due premiums - B Which of the following statements about a Renewable Term policy is CORRECT? A. It is renewable at the option of the insurer. B. It is renewable at the option of the insured. C. It is renewable at the option of the insurer, with proof of insurability. D. It is renewable at the option of the insured, with proof of insurability. - B 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? A. Refuse to pay the Death benefit or refund any premiums B. Refund only the premiums paid C. Refund the premiums paid plus interest D. Pay the Death benefit - D Which of the following policy provisions provides for continuation of coverage despite nonpayment of premiums? A. Entire Contract B. Ownership clause C. Nonforfeiture Option D. Insuring clause - C