PEARSON VUE LIFE INSURANCE FINAL PAPER
2026 QUESTIONS WITH 100% VERIFIED
ANSWERS
◉ Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy? Answer: They are
purchased on an attained age basis.
◉ Which of the following statements is CORRECT about Group Life
conversion privileges? Answer: Death during the conversion period
is covered even if the departing employee chose not to convert the
policy.
◉ 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? Answer: Pay the Death benefit
◉ If a policy contains a Guaranteed Insurability rider, the insured
has the right to purchase: Answer: additional coverage at specified
ages
◉ If life insurance policy applicant is classified as a substandard risk,
the insurance company will MOST likely: Answer: charge an extra
premium
, ◉ 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: Answer: revocable beneficiary
◉ Which of the following features allows an insurance policy to
remain in force for a specified number of days beyond the premium
due date? Answer: Grace Period provision
◉ In life insurance, insurable interest must exist at the time the:
Answer: producer writes an application on a proposed insured
◉ Which of the following terms refers to the transfer of some or all
of the ownership rights of a life insurance policy from one individual
to another? Answer: Assignment
◉ Which of the following statements about a Renewable Term policy
is CORRECT? Answer: It is renewable at the option of the insured.
◉ Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the other
partner to buy 100 percent of the business interest? Answer: Buy
and Sell Agreement
2026 QUESTIONS WITH 100% VERIFIED
ANSWERS
◉ Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy? Answer: They are
purchased on an attained age basis.
◉ Which of the following statements is CORRECT about Group Life
conversion privileges? Answer: Death during the conversion period
is covered even if the departing employee chose not to convert the
policy.
◉ 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? Answer: Pay the Death benefit
◉ If a policy contains a Guaranteed Insurability rider, the insured
has the right to purchase: Answer: additional coverage at specified
ages
◉ If life insurance policy applicant is classified as a substandard risk,
the insurance company will MOST likely: Answer: charge an extra
premium
, ◉ 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: Answer: revocable beneficiary
◉ Which of the following features allows an insurance policy to
remain in force for a specified number of days beyond the premium
due date? Answer: Grace Period provision
◉ In life insurance, insurable interest must exist at the time the:
Answer: producer writes an application on a proposed insured
◉ Which of the following terms refers to the transfer of some or all
of the ownership rights of a life insurance policy from one individual
to another? Answer: Assignment
◉ Which of the following statements about a Renewable Term policy
is CORRECT? Answer: It is renewable at the option of the insured.
◉ Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the other
partner to buy 100 percent of the business interest? Answer: Buy
and Sell Agreement
