Pearson Vue Insurance Practice Exam
Under the social security retirement benefits, all of the following factors will influence
how much a retiring individual will receive as a monthly income benefit except the
individual's - ANS-Sex
In life insurance, insurance interest must exist at the time the - ANS-Producer writes an
application on a proposed insured
Which of the following statements is NOT correct about representations? - ANS-They
are true in every respect
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? - ANS-The
insured's signed statement of continued good health
Which of the following retirement plans is tax-qualified? - ANS-Defined contribution
Which of the following statements is correct about the paid-up additions in a
participating whole life policy? - ANS-They are purchased on an attained age basis
The right to change a beneficiary designation is reserved for the: - ANS-Policyowner
Which of the following provisions in a life policy specifies the manner in which proceeds
will be paid to a beneficiary on the death of the insured? - ANS-Settlement options
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? - ANS-buy-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of the
following actions? - ANS-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? - ANS-The proposed adult insured
, Which of the following statements is correct about group life conversion privileges? -
ANS-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? -
ANS-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? - ANS-children
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an - ANS-annuity
All of the following policies may be examples of third party ownership except -
ANS-Modified Life
Group Life
Split-dollar Life
Key Employee Life
Answer: Modified Life
Which of the following group life plan requires at least 75 percent of the eligible
members to participate? - ANS-Contributory
Which of the following features allows an insurance policy to remain in force for a
specified number of days beyond the premium due date? - ANS-Grace period provision
In which of the following contracts is the death benefit called the principal sum? -
ANS-Accidental Death and Dismemberment (AD&D)
The primary reason for selecting a variable whole life policy instead of a traditional
whole life policy is that the variable whole life policy - ANS-Has the potential to earn a
higher rate of return on the cash value
If an applicant for life insurance submits a completed application to a producer without
paying the first premium, coverage becomes effective when the - ANS-Policy is
delivered and the premium paid
Under the social security retirement benefits, all of the following factors will influence
how much a retiring individual will receive as a monthly income benefit except the
individual's - ANS-Sex
In life insurance, insurance interest must exist at the time the - ANS-Producer writes an
application on a proposed insured
Which of the following statements is NOT correct about representations? - ANS-They
are true in every respect
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? - ANS-The
insured's signed statement of continued good health
Which of the following retirement plans is tax-qualified? - ANS-Defined contribution
Which of the following statements is correct about the paid-up additions in a
participating whole life policy? - ANS-They are purchased on an attained age basis
The right to change a beneficiary designation is reserved for the: - ANS-Policyowner
Which of the following provisions in a life policy specifies the manner in which proceeds
will be paid to a beneficiary on the death of the insured? - ANS-Settlement options
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? - ANS-buy-sell agreement
The waiver of premium provision of a life policy allows the insurer to take which of the
following actions? - ANS-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? - ANS-The proposed adult insured
, Which of the following statements is correct about group life conversion privileges? -
ANS-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? -
ANS-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? - ANS-children
A contract that has as its basic function the systematic liquidation of accumulated
assets through periodic payments is called an - ANS-annuity
All of the following policies may be examples of third party ownership except -
ANS-Modified Life
Group Life
Split-dollar Life
Key Employee Life
Answer: Modified Life
Which of the following group life plan requires at least 75 percent of the eligible
members to participate? - ANS-Contributory
Which of the following features allows an insurance policy to remain in force for a
specified number of days beyond the premium due date? - ANS-Grace period provision
In which of the following contracts is the death benefit called the principal sum? -
ANS-Accidental Death and Dismemberment (AD&D)
The primary reason for selecting a variable whole life policy instead of a traditional
whole life policy is that the variable whole life policy - ANS-Has the potential to earn a
higher rate of return on the cash value
If an applicant for life insurance submits a completed application to a producer without
paying the first premium, coverage becomes effective when the - ANS-Policy is
delivered and the premium paid
