PEARSON VUE LIFE INSURANCE PRACTICE TEST
2026/2027 – AUTHENTIC EXAM QUESTIONS WITH
100% VERIFIED ANSWERS.
◎ In insurance, which of the following terms refers to continuous or repeated exposure
to conditions that may result in bodily injury or damage neither expected nor intended?
A. An accident
B. An occurrence
C. An event
D. A condition ANSWER:- B
◎ Which of the following vehicles is considered a temporary substitute auto under a
Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an errand
B. An auto purchased by an insured to replace a previously owned vehicle
C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a garage for repairs
ANSWER:- D
◎ An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final settlement
D. temporary short-term evidence of coverage ANSWER:- D
◎ Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
C. direct loss
, D. indirect loss ANSWER:- B
◎ The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history prior to underwriting a
policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history prior to issuing a policy
D. insurance company to inform the applicant a credit report may be obtained
ANSWER:- D
◎ The limits of liability are found in which of the following sections of a casualty policy?
A. Conditions
B. Insuring Agreement
C. Declarations
D. Definitions ANSWER:- C
◎ A policyholder would expect to find which of the following information in the Insuring
Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss ANSWER:- B
◎ Products Liability coverage would insure damages that arise from which of the
following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store
demonstration.
2026/2027 – AUTHENTIC EXAM QUESTIONS WITH
100% VERIFIED ANSWERS.
◎ In insurance, which of the following terms refers to continuous or repeated exposure
to conditions that may result in bodily injury or damage neither expected nor intended?
A. An accident
B. An occurrence
C. An event
D. A condition ANSWER:- B
◎ Which of the following vehicles is considered a temporary substitute auto under a
Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an errand
B. An auto purchased by an insured to replace a previously owned vehicle
C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a garage for repairs
ANSWER:- D
◎ An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final settlement
D. temporary short-term evidence of coverage ANSWER:- D
◎ Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
C. direct loss
, D. indirect loss ANSWER:- B
◎ The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history prior to underwriting a
policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history prior to issuing a policy
D. insurance company to inform the applicant a credit report may be obtained
ANSWER:- D
◎ The limits of liability are found in which of the following sections of a casualty policy?
A. Conditions
B. Insuring Agreement
C. Declarations
D. Definitions ANSWER:- C
◎ A policyholder would expect to find which of the following information in the Insuring
Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss ANSWER:- B
◎ Products Liability coverage would insure damages that arise from which of the
following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store
demonstration.
