Test Bank
Pearson VUE Life & Health Insurance
Edition | Verified Questions & Correct
Answers | State Licensing Preparation
1. An insured names a beneficiary but retains ownership rights. The
beneficiary is:
A. Irrevocable
B. Revocable
C. Contingent
D. Tertiary
Answer: B
2. A contract that provides periodic payments for life is:
A. Endowment
B. Whole life
C. Annuity
D. Term
Answer: C
3. Which policy has the lowest premium initially?
A. Whole life
B. Universal life
C. Term life
D. Variable life
Answer: C
4. The consideration clause includes:
,A. Premium + statements in application
B. Only premium
C. Only insurer promise
D. Riders
Answer: A
5. Risk is best defined as:
A. Certain loss
B. Uncertainty of loss
C. Profit
D. Investment
Answer: B
6. Which is NOT a type of hazard?
A. Moral
B. Physical
C. Legal
D. Morale
Answer: C
7. A policy loan is available in:
A. Term
B. Whole life
C. Group
D. Health
Answer: B
8. Premiums are based on:
A. Risk classification
B. Agent commission
C. Age only
D. Gender only
Answer: A
9. The grace period is:
A. 10 days
B. 30–31 days
C. 60 days
,D. 90 days
Answer: B
10. Insurable interest must exist:
A. At application
B. At death
C. Always
D. Never
Answer: A
11. Whole life insurance provides:
A. Temporary coverage
B. Permanent coverage
C. No cash value
D. Variable risk
Answer: B
12. Which rider waives premium if disabled?
A. Accidental death
B. Waiver of premium
C. Payor benefit
D. Return of premium
Answer: B
13. Group insurance is typically:
A. Individual
B. Employer-sponsored
C. Government only
D. Optional
Answer: B
14. Underwriting determines:
A. Claims
B. Risk classification
C. Benefits
D. Taxes
Answer: B
, 15. The incontestability clause is usually:
A. 1 year
B. 2 years
C. 5 years
D. Lifetime
Answer: B
16. Which policy builds cash value fastest?
A. Term
B. Whole life
C. Credit
D. Disability
Answer: B
17. An annuity protects against:
A. Death
B. Disability
C. Longevity risk
D. Fire
Answer: C
18. The free-look period allows:
A. Policy change
B. Cancellation with refund
C. Premium increase
D. Claim filing
Answer: B
19. Which is NOT permanent insurance?
A. Whole life
B. Universal life
C. Variable life
D. Term
Answer: D
20. The death benefit is paid:
Pearson VUE Life & Health Insurance
Edition | Verified Questions & Correct
Answers | State Licensing Preparation
1. An insured names a beneficiary but retains ownership rights. The
beneficiary is:
A. Irrevocable
B. Revocable
C. Contingent
D. Tertiary
Answer: B
2. A contract that provides periodic payments for life is:
A. Endowment
B. Whole life
C. Annuity
D. Term
Answer: C
3. Which policy has the lowest premium initially?
A. Whole life
B. Universal life
C. Term life
D. Variable life
Answer: C
4. The consideration clause includes:
,A. Premium + statements in application
B. Only premium
C. Only insurer promise
D. Riders
Answer: A
5. Risk is best defined as:
A. Certain loss
B. Uncertainty of loss
C. Profit
D. Investment
Answer: B
6. Which is NOT a type of hazard?
A. Moral
B. Physical
C. Legal
D. Morale
Answer: C
7. A policy loan is available in:
A. Term
B. Whole life
C. Group
D. Health
Answer: B
8. Premiums are based on:
A. Risk classification
B. Agent commission
C. Age only
D. Gender only
Answer: A
9. The grace period is:
A. 10 days
B. 30–31 days
C. 60 days
,D. 90 days
Answer: B
10. Insurable interest must exist:
A. At application
B. At death
C. Always
D. Never
Answer: A
11. Whole life insurance provides:
A. Temporary coverage
B. Permanent coverage
C. No cash value
D. Variable risk
Answer: B
12. Which rider waives premium if disabled?
A. Accidental death
B. Waiver of premium
C. Payor benefit
D. Return of premium
Answer: B
13. Group insurance is typically:
A. Individual
B. Employer-sponsored
C. Government only
D. Optional
Answer: B
14. Underwriting determines:
A. Claims
B. Risk classification
C. Benefits
D. Taxes
Answer: B
, 15. The incontestability clause is usually:
A. 1 year
B. 2 years
C. 5 years
D. Lifetime
Answer: B
16. Which policy builds cash value fastest?
A. Term
B. Whole life
C. Credit
D. Disability
Answer: B
17. An annuity protects against:
A. Death
B. Disability
C. Longevity risk
D. Fire
Answer: C
18. The free-look period allows:
A. Policy change
B. Cancellation with refund
C. Premium increase
D. Claim filing
Answer: B
19. Which is NOT permanent insurance?
A. Whole life
B. Universal life
C. Variable life
D. Term
Answer: D
20. The death benefit is paid:
