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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 โโB 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
Pearson Vue Life Insurance Practice Exam (202 4 /202 5 ) with Verified
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C. endowment D. annuity โโD 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. โโB An employer can deduct premium payments as an ordinary business expense for which of the following life coverages?
A. Family Income rider B. Survivorship Life policy C. Joint Life policy D. Modified Life policy โโA 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. โโB 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 โโA 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
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 โโD Which of the following policy provisions provides for continuation of coverage despite nonpayment of premiums? A. Entire Contract B. Ownership clause C. Nonforfeiture Option
D. Insuring clause โโC An applicant for life insurance may question the validity and source of any consumer information developed under the A. Medical Information Bureau Disclosure Act B. Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) C. Equal Employment Opportunity Act D. Medicare Act โโB The PRIMARY reason for selecting a Variable Whole Life policy instead of a traditional Whole Life policy is that the Variable Whole Life policy: A. provides flexible premium payments B. allows the policyowner to borrow a larger percentage of the cash value
The Waiver of Premium provision of a life policy allows the insurer to take which of the following actions? A. Waive an insured's premiums if the insured becomes totally disabled before a certain age B. Waive an insured's premiums if the insured becomes partially disabled for a minimum time C. Increase an insured's coverage at an attained age without imposing a premium increase D. Reduce an insured's premiums if the insured pays them annually instead of monthly โโA Under the Social Security Retirement Benefits, all of the following factors will influence how much a retiring individual will receive as a monthly income benefit EXCEPT the individual's: A. age B. "primary insurance amount" C. "fully insured" or "currently insured" status
D. sex โโD The PRIMARY purpose of an inspection report is to assess an applicant's: A. credit rating B. personal characteristics C. job performance D. health profile โโB If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase: A. additional coverage when the insured reaches retirement age B. additional coverage whenever the insured changes jobs
B. value of the Nonforfeiture Options may decrease C. face amount may increase D. length of coverage may increase โโB An insured owns a $10,000 policy with a $4,000 cash value and a 6 percent interest rate. On January 1, the insured borrows $500 and pays one year's interest in advance. During the year, the insured does not repay any part of the loan or interest. If the insured dies on December 31, the beneficiary will be entitled to a MAXIMUM of: A. $3, B. $6, C. $9, D. $9,500 โโD
Which of the following retirement plans is tax-qualified? A. Key-person B. Defined contribution C. Section 457 deferred compensation D. Split dollar life insurance โโB A life insurance application is incomplete if it is missing the signature of which of the following? A.A revocable beneficiary B. The president of the insurer C. The proposed insured's primary care physician
C. Split-dollar Life D. Key Employee Life โโA In life insurance, insurable interest must exist at the time the A. producer delivers a policy B. proposed insured has a medical examination C. producer writes an application on a proposed insured D. beneficiary files a claim โโC A payor benefit rider provides which of the following benefits A.A disability income benefit payable to the payor if the payor becomes disabled
B.A permanent waiver of premium should the payor die C.A temporary waiver of premium should the payor die, until the insured reaches a predetermined age D.A double indemnity Death benefit payable to the beneficiary upon the death of the payor โโC Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the other partner to buy 100 percent of the business interest? A. Buy and Sell Agreement B. Key Employee Life policy C. Survivorship Life D. Joint and Several Annuity โโA
D. complete the producer's report โโC In life insurance, the Free Look provision begins on the: A. effective date of coverage B. policy delivery date C. date of application D. date that the insurer issues the policy โโB A client needs a substantial amount of protection but has limited financial resources. Which of the following insurance policies would BEST meet the client's needs? A. Term Life
B. Adjustable Life C. Whole Life D. Limited-Pay Life โโA A life policy is usually contestable due to material misrepresentation on the application for a period of: A.30 days B.6 months C.2 years D.5 years โโC Which of the following statements is CORRECT about the Paid-Up Additions in a participating Whole Life policy?
