PEARSON VUE LIFE INSURANCE PRACTICE EXAM QUESTIONS AND
ANSWERS GRADED A+ 100% VERIFIED.
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 ANS >> B
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 ANS >> D
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. ANS >> B
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 ANS >> B
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 ANS >> D
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
ANSWERS GRADED A+ 100% VERIFIED.
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 ANS >> B
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 ANS >> D
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. ANS >> B
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 ANS >> B
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 ANS >> D
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
