Pearson Vue Life Insurance Practice
Exam
A client needs a substantial amount of protection but has limited financial resources. Which of
the following insurance policies would BEST meet the client's needs?
A.Term Life
B.Adjustable Life
C.Whole Life
D.Limited-Pay Life - ANS - A
\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 - ANS - D
\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 - ANS - D
\A life insurance application is incomplete if it is missing the signature of which of the following?
A.A revocable beneficiary
B.The president of the insurer
C.The proposed insured's primary care physician
D.The proposed adult insured - ANS - D
, \A life policy is usually contestable due to material misrepresentation on the application for a
period of:
A.30 days
B.6 months
C.2 years
D.5 years - ANS - C
\A payor benefit rider provides which of the following benefits
A.A disability income benefit payable to the payor if the payor becomes disabled
B.A permanent waiver of premium should the payor die
C.A temporary waiver of premium should the payor die, until the insured reaches a
predetermined age
D.A double indemnity Death benefit payable to the beneficiary upon the death of the payor -
ANS - C
\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?
A.The children
B.The policyowner's estate
C.The primary beneficiary's estate
D.The tertiary beneficiary - ANS - A
\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 - ANS - D
\A type of annuity in which the cash values are invested in securities is called:
Exam
A client needs a substantial amount of protection but has limited financial resources. Which of
the following insurance policies would BEST meet the client's needs?
A.Term Life
B.Adjustable Life
C.Whole Life
D.Limited-Pay Life - ANS - A
\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 - ANS - D
\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 - ANS - D
\A life insurance application is incomplete if it is missing the signature of which of the following?
A.A revocable beneficiary
B.The president of the insurer
C.The proposed insured's primary care physician
D.The proposed adult insured - ANS - D
, \A life policy is usually contestable due to material misrepresentation on the application for a
period of:
A.30 days
B.6 months
C.2 years
D.5 years - ANS - C
\A payor benefit rider provides which of the following benefits
A.A disability income benefit payable to the payor if the payor becomes disabled
B.A permanent waiver of premium should the payor die
C.A temporary waiver of premium should the payor die, until the insured reaches a
predetermined age
D.A double indemnity Death benefit payable to the beneficiary upon the death of the payor -
ANS - C
\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?
A.The children
B.The policyowner's estate
C.The primary beneficiary's estate
D.The tertiary beneficiary - ANS - A
\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 - ANS - D
\A type of annuity in which the cash values are invested in securities is called:
