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PEARSON VUE COMPREHENSIVE EXAM

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PEARSON VUE COMPREHENSIVE EXAM

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  • October 20, 2024
  • 106
  • 2024/2025
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115 Multiple choice questions

Definition 1 of 115
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premium must be paid

For 20 years


Until the policyowners age 65

Until the policyowners age 100, when the policy matures

For 20 years or until death, whichever occurs first

Definition 2 of 115
Which of the following is a true characteristic of a Variable Universal Life Policy.

The insurer bears all risks in accumulating cash value

The policy has a fixed premium schedule

As long as there is sufficient cash value to cover policy expenses due, the insured is not
required to pay the planned premium


The policy requires only a life license to sell

Definition 3 of 115
Which of the following is a policy not issued with a rating?

Lien Plan


Flat Rate

Tabular Rate


Preferred Rate

,Definition 4 of 115
An insurer considers all of the following when determining the fixed annuity payments, except:

The accumulation amount


Stock market values

Interest rate


Expenses

Definition 5 of 115
In order to make sure that a creditor of the insured is not paid more than the outstanding loan
at time of claim, the policyowner should:

Specify a dollar amount the creditor should receive at time of claim

Indicate the percentage of the face amount that creditor will receive


Name the creditor as a primary beneficiary

Purchase a decreasing benefit policy that matches the loan repayment schedule

Definition 6 of 115
A type of annuity in which the cash values are invested in securities is called:

Variable


Deferred

Fixed

Joint and survivorship

Definition 7 of 115
_____________ is/are not considered material to the policy issuance.

Recent major inpatient hospital surgeries

Hazardous occupation and/or hobbies

12 driving under the influence tickets within 6 months prior to application

Age and/or gender

,Definition 8 of 115
Under the Modified Endowment Contract rules the 7-Pay Test is defined as:

The comparison of premiums paid during the first 7 years with the net level premiums
that would have been paid on a 7 year pay whole life of the same death benefit


The cash value at the end of the 7 exceeds the total of premiums paid

Any life insurance policy that endows in 7 years

The least amount of premium required to be paid in the first 7 years to maintain the
policy to age 70

Definition 9 of 115
Which of the following would least likely be considered a legitimate need that would be paid
by insurance proceeds?

Vacation travel expenses

Travel expenses for family members to come to the funeral


Day care

Debt cancelation

Definition 10 of 115
The Social Security Survivor Benefit is the amount of _________ that may be expected from the
Primary Insurance Amount (PIA) of the insured.

Death benefit proceeds

Income

Tax Refund


Indemnification

, Definition 11 of 115
How many hours of continuing education are required to maintain an insurance license in
Colorado?

24 hours every 2 years

16 hours every 2 years

24 hours annually

16 hours annually

Definition 12 of 115
James is nearing retirement and has accumulated $175,000 in an annuity. He wants the largest
possible monthly benefit for as long as he lives. Which option should he choose?

Fixed Amount

Life Income with Refund

Joint Life

Life Income

Definition 13 of 115
A partial withdrawal is considered _____________.

A partial surrender of the policy

A policy loan

A temporary event

A one-time event

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