PEARSON VUE LIFE INSURANCE EXAM 2025
50+ (Updated for 2025-2026) Exam Prep Pack | A+ Questions & Verified Answers
Question 1
A contract that has as its basic function the systematic liquidation of accumulated assets through periodic
Correct!
payments is called an:
A.indemnity contract
B.investment contract
C.endowment
D.annuity
D
Question 2
If an insured commits suicide after the Suicide clause in the insured's life insurance policy has expired, the
Correct!
insurer will take which of the following actions?
A.Refuse to pay the Death benefit or refund any premiums
B.Refund only the premiums paid
C.Refund the premiums paid plus interest
D.Pay the Death benefit
D
, Question 3
An applicant for life insurance may question the validity and source of any consumer information developed
Correct!
under the
A.Medical Information Bureau Disclosure Act
B.Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
C.Equal Employment Opportunity Act
D.Medicare Act
B
Question 4
An insured intentionally understates her age on her application for a life policy. At death, the insurer will
Correct!
take which of the following actions?
A.Refuse to pay the claim based on material misrepresentation on the application
B.Pay the face amount of the policy if the death occurred after the end of the incontestable period
C.Pay a reduced Death benefit based on the insured's actual age
D.Pay the stated Death benefit less the unpaid premium owed to the company as a result of the understated
age.
C
Question 5
All of the following policies may be examples of third party ownership EXCEPT:
Correct!
A.Modified Life
B.Group Life
C.Split-dollar Life
D.Key Employee Life
A
, Question 6
Which of the following group life plans requires at least 75 percent of the eligible members to participate?
Correct!
A.Contributory
B.Noncontributory
C.Participating
D.Nonparticipating
A
Question 7
Two business partners own life insurance on each other. If one partner dies, which of the following contracts
Correct!
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
A
Question 8
At which of the following times MUST a life insurance applicant be informed of their rights under the Fair
Correct!
Credit Reporting Act?
A.During the initial appointment
B.When the insured's application is completed
C.When the policy is delivery
D.Upon initial premium receipt
C
50+ (Updated for 2025-2026) Exam Prep Pack | A+ Questions & Verified Answers
Question 1
A contract that has as its basic function the systematic liquidation of accumulated assets through periodic
Correct!
payments is called an:
A.indemnity contract
B.investment contract
C.endowment
D.annuity
D
Question 2
If an insured commits suicide after the Suicide clause in the insured's life insurance policy has expired, the
Correct!
insurer will take which of the following actions?
A.Refuse to pay the Death benefit or refund any premiums
B.Refund only the premiums paid
C.Refund the premiums paid plus interest
D.Pay the Death benefit
D
, Question 3
An applicant for life insurance may question the validity and source of any consumer information developed
Correct!
under the
A.Medical Information Bureau Disclosure Act
B.Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
C.Equal Employment Opportunity Act
D.Medicare Act
B
Question 4
An insured intentionally understates her age on her application for a life policy. At death, the insurer will
Correct!
take which of the following actions?
A.Refuse to pay the claim based on material misrepresentation on the application
B.Pay the face amount of the policy if the death occurred after the end of the incontestable period
C.Pay a reduced Death benefit based on the insured's actual age
D.Pay the stated Death benefit less the unpaid premium owed to the company as a result of the understated
age.
C
Question 5
All of the following policies may be examples of third party ownership EXCEPT:
Correct!
A.Modified Life
B.Group Life
C.Split-dollar Life
D.Key Employee Life
A
, Question 6
Which of the following group life plans requires at least 75 percent of the eligible members to participate?
Correct!
A.Contributory
B.Noncontributory
C.Participating
D.Nonparticipating
A
Question 7
Two business partners own life insurance on each other. If one partner dies, which of the following contracts
Correct!
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
A
Question 8
At which of the following times MUST a life insurance applicant be informed of their rights under the Fair
Correct!
Credit Reporting Act?
A.During the initial appointment
B.When the insured's application is completed
C.When the policy is delivery
D.Upon initial premium receipt
C
