PERSON VUE LIFE INSURANCE PRACTICE EXAM
1. P wants to name her husband as the beneficiary of her life policy. However,
she wishes to retain all of the rights of ownership. P should have her husband named as the:
A.irrevocable beneficiary B.revocable
beneficiary C.secondary beneficiary
. Answer: B
2. 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
. Answer: D
3. 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?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
D. A copy of the temporary insurance agreement that covered the period between the application date and the
delivery date.
. Answer: B
,4. An employer can deduct premium payments as an ordinary business ex- pense for which of the following life
coverages?
A.Buy and Sell Agreements B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary
. Answer: B
, 5. 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
. Answer: D
6. 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?
A.Family Income rider B.Survivorship
Life policy C.Joint Life policy
D.Modified Life policy
. Answer: A
7. Which of the following statements is CORRECT about Group Life conver-
sion privileges?
A.Under the COBRA law, a departing employee may elect to remain a member of the Group Life plan for a limited
period of time.
B.Death during the conversion period is covered even if the departing employ- ee chose not to convert the policy.
C.A departing employee must individually pay the premium if the employee elects to be covered during the
conversion period.
D.If a departing employee elects to convert a life insurance policy, the insurer must offer Term insurance as one of the
choices.
. Answer: B
8. Which of the following policies is an interest-sensitive form of permanent protection?
1. P wants to name her husband as the beneficiary of her life policy. However,
she wishes to retain all of the rights of ownership. P should have her husband named as the:
A.irrevocable beneficiary B.revocable
beneficiary C.secondary beneficiary
. Answer: B
2. 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
. Answer: D
3. 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?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
D. A copy of the temporary insurance agreement that covered the period between the application date and the
delivery date.
. Answer: B
,4. An employer can deduct premium payments as an ordinary business ex- pense for which of the following life
coverages?
A.Buy and Sell Agreements B.Group
C.Key Employee
D.Joint Life, if the business is named as the beneficiary
. Answer: B
, 5. 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
. Answer: D
6. 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?
A.Family Income rider B.Survivorship
Life policy C.Joint Life policy
D.Modified Life policy
. Answer: A
7. Which of the following statements is CORRECT about Group Life conver-
sion privileges?
A.Under the COBRA law, a departing employee may elect to remain a member of the Group Life plan for a limited
period of time.
B.Death during the conversion period is covered even if the departing employ- ee chose not to convert the policy.
C.A departing employee must individually pay the premium if the employee elects to be covered during the
conversion period.
D.If a departing employee elects to convert a life insurance policy, the insurer must offer Term insurance as one of the
choices.
. Answer: B
8. Which of the following policies is an interest-sensitive form of permanent protection?
