Pearson Vue Life Insurance Practice Exam Questions and verified Answers
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 contract that has as its basic function the system...
Pearson Vue Life Insurance Practice Exam
Questions and verified Answers
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 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 CORRECT ANSWERS 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. CORRECT ANSWERS 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 CORRECT ANSWERS 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 CORRECT 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 CORRECT 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. CORRECT ANSWERS B
Which of the following policies is an interest-sensitive form of permanent protection?
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