Pearson Vue Life Insurance Practice Exam
Questions And Correct Answers | Graded A+|
Latest Update
An insured owns a $10,000 policy with a $4,000 cash value and a
6 percent interest rate. On January 1, the insured borrows $500
and pays one year's interest in advance. During the year, the
insured does not repay any part of the loan or interest. If the
insured dies on December 31, the beneficiary will be entitled to a
MAXIMUM of:
A. $3,500
B. $6,000
C. $9,470
D. $9,500 - CORRECT ANSWER D
Which of the following retirement plans is tax-qualified?
A. Key-person
B. Defined contribution
C. Section 457 deferred compensation
D. Split dollar life insurance - CORRECT ANSWER B
,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 - CORRECT ANSWER D
The right to change a beneficiary designation is reserved for the:
A. beneficiary
B. policyowner
C. insurer
D. insured - CORRECT ANSWER B
All of the following policies may be examples of third party
ownership EXCEPT:
A. Modified Life
B. Group Life
C. Split-dollar Life
D. Key Employee Life - CORRECT ANSWER A
In life insurance, insurable interest must exist at the time the
, A. producer delivers a policy
B. proposed insured has a medical examination
C. producer writes an application on a proposed insured
D. beneficiary files a claim - CORRECT ANSWER 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 - CORRECT ANSWER C
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?
A. Buy and Sell Agreement
B. Key Employee Life policy
C. Survivorship Life
D. Joint and Several Annuity - CORRECT ANSWER A
If life insurance policy applicant is classified as a substandard
risk, the insurance company will MOST likely:
Questions And Correct Answers | Graded A+|
Latest Update
An insured owns a $10,000 policy with a $4,000 cash value and a
6 percent interest rate. On January 1, the insured borrows $500
and pays one year's interest in advance. During the year, the
insured does not repay any part of the loan or interest. If the
insured dies on December 31, the beneficiary will be entitled to a
MAXIMUM of:
A. $3,500
B. $6,000
C. $9,470
D. $9,500 - CORRECT ANSWER D
Which of the following retirement plans is tax-qualified?
A. Key-person
B. Defined contribution
C. Section 457 deferred compensation
D. Split dollar life insurance - CORRECT ANSWER B
,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 - CORRECT ANSWER D
The right to change a beneficiary designation is reserved for the:
A. beneficiary
B. policyowner
C. insurer
D. insured - CORRECT ANSWER B
All of the following policies may be examples of third party
ownership EXCEPT:
A. Modified Life
B. Group Life
C. Split-dollar Life
D. Key Employee Life - CORRECT ANSWER A
In life insurance, insurable interest must exist at the time the
, A. producer delivers a policy
B. proposed insured has a medical examination
C. producer writes an application on a proposed insured
D. beneficiary files a claim - CORRECT ANSWER 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 - CORRECT ANSWER C
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?
A. Buy and Sell Agreement
B. Key Employee Life policy
C. Survivorship Life
D. Joint and Several Annuity - CORRECT ANSWER A
If life insurance policy applicant is classified as a substandard
risk, the insurance company will MOST likely:
