Pearson Vue Insurance Practice Exam
Questions All Answered Correctly
2025/2026 Update.
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 -
Answer Sex
In life insurance, insurance interest must exist at the time the - Answer Producer writes an
application on a proposed insured
Which of the following statements is NOT correct about representations? - Answer 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? - Answer The insured's signed statement of
continued good health
Which of the following retirement plans is tax-qualified? - Answer Defined contribution
Which of the following statements is correct about the paid-up additions in a participating
whole life policy? - Answer They are purchased on an attained age basis
The right to change a beneficiary designation is reserved for the: - Answer 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? - Answer 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? -
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
, 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
Which of the following group life plan requires at least 75 percent of the eligible members to
participate? - Answer 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? - Answer Grace period provision
In which of the following contracts is the death benefit called the principal sum? - Answer
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 - Answer Has the potential to earn a higher rate of
return on the cash value
Questions All Answered Correctly
2025/2026 Update.
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 -
Answer Sex
In life insurance, insurance interest must exist at the time the - Answer Producer writes an
application on a proposed insured
Which of the following statements is NOT correct about representations? - Answer 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? - Answer The insured's signed statement of
continued good health
Which of the following retirement plans is tax-qualified? - Answer Defined contribution
Which of the following statements is correct about the paid-up additions in a participating
whole life policy? - Answer They are purchased on an attained age basis
The right to change a beneficiary designation is reserved for the: - Answer 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? - Answer 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? -
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
, 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
Which of the following group life plan requires at least 75 percent of the eligible members to
participate? - Answer 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? - Answer Grace period provision
In which of the following contracts is the death benefit called the principal sum? - Answer
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 - Answer Has the potential to earn a higher rate of
return on the cash value
