Exam (elaborations)
Pearson Vue Life Insurance Practice Exam (1)
- Module
- Pearson
- Institution
- Pearson (PEARSON)
Pearson Vue Life Insurance Practice Exam (1)
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Pearson Vue Life Insurance Practice ExamP 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
D.Modified Life policy - ANS-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. - ANS-B
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