Pearson Vue Life + Health Insurance Practice Exam Questions
Pearson Vue Life + Health Insurance
Practice Exam Questions & Answers Latest
Question 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
Correct Answer
B
Question 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
Correct Answer
D
Question 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.
Correct Answer
B
Page 1 of 34
, Pearson Vue Life + Health Insurance Practice Exam Questions
Question 4
An employer can deduct premium payments as an ordinary business expense 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
Correct Answer
B
Question 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
Correct Answer
D
Question 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
Correct Answer
A
Page 2 of 34
, Pearson Vue Life + Health Insurance Practice Exam Questions
Question 7
Which of the following statements is CORRECT about Group Life conversion
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 employee
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.
Correct Answer
B
Question 8
Which of the following policies is an interest-sensitive form of permanent protection?
A. Universal Life
B. Limited-Pay Life
C. Graded Premium Whole Life
D. Modified Whole Life
Correct Answer
A
Question 9
Reinstatement of a life insurance policy requires an insured to take all of the following
actions EXCEPT:
A. provide evidence of insurability
B. make collateral assignment to the insurer
C. pay back interest on any outstanding policy loan
D. pay all past-due premiums
Correct Answer
B
Page 3 of 34
, Pearson Vue Life + Health Insurance Practice Exam Questions
Question 10
Which of the following statements about a Renewable Term policy is CORRECT?
A. It is renewable at the option of the insurer.
B. It is renewable at the option of the insured.
C. It is renewable at the option of the insurer, with proof of insurability.
D. It is renewable at the option of the insured, with proof of insurability.
Correct Answer
B
Question 11
If an insured commits suicide after the Suicide clause in the insured's life insurance
policy has expired, the 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
Correct Answer
D
Question 12
Which of the following policy provisions provides for continuation of coverage
despite nonpayment of premiums?
A. Entire Contract
B. Ownership clause
C. Nonforfeiture Option
D. Insuring clause
Correct Answer
C
Page 4 of 34
Pearson Vue Life + Health Insurance
Practice Exam Questions & Answers Latest
Question 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
Correct Answer
B
Question 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
Correct Answer
D
Question 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.
Correct Answer
B
Page 1 of 34
, Pearson Vue Life + Health Insurance Practice Exam Questions
Question 4
An employer can deduct premium payments as an ordinary business expense 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
Correct Answer
B
Question 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
Correct Answer
D
Question 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
Correct Answer
A
Page 2 of 34
, Pearson Vue Life + Health Insurance Practice Exam Questions
Question 7
Which of the following statements is CORRECT about Group Life conversion
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 employee
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.
Correct Answer
B
Question 8
Which of the following policies is an interest-sensitive form of permanent protection?
A. Universal Life
B. Limited-Pay Life
C. Graded Premium Whole Life
D. Modified Whole Life
Correct Answer
A
Question 9
Reinstatement of a life insurance policy requires an insured to take all of the following
actions EXCEPT:
A. provide evidence of insurability
B. make collateral assignment to the insurer
C. pay back interest on any outstanding policy loan
D. pay all past-due premiums
Correct Answer
B
Page 3 of 34
, Pearson Vue Life + Health Insurance Practice Exam Questions
Question 10
Which of the following statements about a Renewable Term policy is CORRECT?
A. It is renewable at the option of the insurer.
B. It is renewable at the option of the insured.
C. It is renewable at the option of the insurer, with proof of insurability.
D. It is renewable at the option of the insured, with proof of insurability.
Correct Answer
B
Question 11
If an insured commits suicide after the Suicide clause in the insured's life insurance
policy has expired, the 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
Correct Answer
D
Question 12
Which of the following policy provisions provides for continuation of coverage
despite nonpayment of premiums?
A. Entire Contract
B. Ownership clause
C. Nonforfeiture Option
D. Insuring clause
Correct Answer
C
Page 4 of 34
