PEARSON VUE LIFE INSURANCE PRACTICE EXAM
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 - Answers :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 - Answers :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
D.Modified Life policy - Answers :A
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. - Answers :B
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 - Answers :A
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 - Answers :B
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. - Answers :B
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 - Answers :D
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 - Answers :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 - Answers :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
D.Modified Life policy - Answers :A
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. - Answers :B
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 - Answers :A
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 - Answers :B
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. - Answers :B
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 - Answers :D
