2024 PEARSON VUE LIFE
INSURANCE PRACTICE EXAM WITH
100% CORRECT ANSWERS
A contract that promises to pay an income to an insured until his/her death is
called:
A.Family Income
B.Modified Endowment
C.Survivorship Life
D.Life Annuity - CORRECT ANSWERS-D
Which of the following group life plans requires at least 75 percent of the
eligible members to participate?
A.Contributory
B.Noncontributory
C.Participating
D.Nonparticipating - CORRECT ANSWERS-A
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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-D
An insured intentionally understates her age on her application for a life
policy. At death, the insurer will take which of the following actions?
A.Refuse to pay the claim based on material misrepresentation on the
application
B.Pay the face amount of the policy if the death occurred after the end of the
incontestable period
C.Pay a reduced Death benefit based on the insured's actual age
D.Pay the stated Death benefit less the unpaid premium owed to the
company as a result of the understated age. - CORRECT ANSWERS-C
Which of the following annuities would BEST suit the needs of a 35-year-old
factory worker who is concerned about inflation and wants to establish a
retirement plan?
A.A Single Premium Deferred Annuity
B.A Single Premium Immediate Annuity
C.A Level Premium Fixed Annuity
D.A Flexible Premium Variable Annuity - CORRECT ANSWERS-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
INSURANCE PRACTICE EXAM WITH
100% CORRECT ANSWERS
A contract that promises to pay an income to an insured until his/her death is
called:
A.Family Income
B.Modified Endowment
C.Survivorship Life
D.Life Annuity - CORRECT ANSWERS-D
Which of the following group life plans requires at least 75 percent of the
eligible members to participate?
A.Contributory
B.Noncontributory
C.Participating
D.Nonparticipating - CORRECT ANSWERS-A
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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-D
An insured intentionally understates her age on her application for a life
policy. At death, the insurer will take which of the following actions?
A.Refuse to pay the claim based on material misrepresentation on the
application
B.Pay the face amount of the policy if the death occurred after the end of the
incontestable period
C.Pay a reduced Death benefit based on the insured's actual age
D.Pay the stated Death benefit less the unpaid premium owed to the
company as a result of the understated age. - CORRECT ANSWERS-C
Which of the following annuities would BEST suit the needs of a 35-year-old
factory worker who is concerned about inflation and wants to establish a
retirement plan?
A.A Single Premium Deferred Annuity
B.A Single Premium Immediate Annuity
C.A Level Premium Fixed Annuity
D.A Flexible Premium Variable Annuity - CORRECT ANSWERS-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
