Pearson Vue Insurance Practice Exam/ 56
Q&A/ Already Graded A+
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? - Answer: buy-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of
the following actions? - Answer: waive 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? - Answer: The proposed adult insured
Page 1 of 10
, Which of the following statements is correct about group life conversion
privileges? - Answer: Death 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? - Answer: Family 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? -
Answer: children
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an - Answer: annuity
All of the following policies may be examples of third party ownership except -
Answer: Modified Life
Group Life
Split-dollar Life
Key Employee Life
Answer: Modified Life
Page 2 of 10
Q&A/ Already Graded A+
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? - Answer: buy-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of
the following actions? - Answer: waive 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? - Answer: The proposed adult insured
Page 1 of 10
, Which of the following statements is correct about group life conversion
privileges? - Answer: Death 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? - Answer: Family 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? -
Answer: children
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an - Answer: annuity
All of the following policies may be examples of third party ownership except -
Answer: Modified Life
Group Life
Split-dollar Life
Key Employee Life
Answer: Modified Life
Page 2 of 10
