Pearson Vue Life Health Insurance Life Exam New

Pearson Vue Life + Health Insurance Life Exam New 2024 Version Best Studying Material with All Questions and Answers

The PRIMARY reason for selecting a Variable Whole Life policy instead of a traditional

Whole Life policy is that the Variable Whole Life policy:

• provides flexible premium payments
• allows the policyowner to borrow a larger percentage of the cash value
• has the potential to earn a higher rate of return on the cash value
• allows the policyowner more flexibility in naming and changing beneficiaries ---------

Correct Answer ---------- C

A policyowner names his wife as the primary beneficiary of his Universal Life policy on a revocable basis. He also names his three children as his secondary beneficiaries and his estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he dies, who will receive the policy proceeds?

• The children
• The policyowner's estate
• The primary beneficiary's estate
• The tertiary beneficiary --------- Correct Answer ---------- A

An insured whose Disability Income policy contains a Change of Occupation clause takes a new job in a more hazardous occupation and fails to notify the insurer of the change. One year later, the insured becomes disabled. The insurer will most likely take which of the following actions?

• Cancel the policy and refund one year's premiums
• Settle the claim according to what the premiums would have purchased under the

more hazardous occupation

• Pay the claim in full and then cancel the policy
• Pay the claim after deducting an extra one-year premium payment --------- Correct

Answer ---------- B

A payor benefit rider provides which of the following benefits? --------- Correct Answer --- ------- A temporary waiver of premium should the payor die, until the insured reaches a predetermined age

In which of the following contracts is the Death benefit called the principal sum? --------- Correct Answer ---------- Accidental Death and Dismemberment (AD&D)

The PRIMARY purpose of an inspection report is to assess an applicant's: --------- Correct Answer ---------- personal characteristics

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? 1 / 4

• Twisting
• Defamation
• False advertising
• Unfair claims --------- Correct Answer ---------- False advertising

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

• Concealment
• Unfair claim practice
• Rebating
• Misrepresentation --------- Correct Answer ---------- Misrepresentation

What is the major difference between a stock company and a mutual company?

• Types of policies issued
• Ownership
• Amount of benefits
• Number of producers --------- Correct Answer ---------- Ownership

How long most producer maintain records of continuing education course completion?

• 1 year
• 3 years
• 4 years
• 5 years --------- Correct Answer ---------- 4 years

All of the following information must be included in the evidence of coverage for an HMO plan EXCEPT

• HMO's toll-free telephone number
• The insurance agent's name and license number
• A schedule of benefits
• Examples of information to appear in the blanks --------- Correct Answer ---------- The

insurance agent's name and license number

The classification "Small Employer" means any person or firm that during the preceding year employed how many employees?

• Between 1 and 25
• At least 2 and not more than 50
• At least 10 and not more than 100
• No more than 10 --------- Correct Answer ---------- At least 2 and not more than 50

The insurance Commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every

• Year
• 2 years
• 3 years
• 5 years --------- Correct Answer ---------- 5 years
• / 4

What is a foreign insurer?

• An insurer with a home office in another country
• An insurer with licensed agents doing business in other country
• An insurer with licensed agents who are citizens in more than one country
• An insurer with a home office in another state --------- Correct Answer ---------- An

insurer with a home office in another state

HMOs that contract with outside physicians to provide health care service to their subscribers compensate those providers on a

• Capitation basis
• Medicare allowable basis
• Sliding scale determined by the subscriber's occupation
• More expensive basis --------- Correct Answer ---------- Capitation basis

An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT

• Variable universal life
• Whole life
• Level term
• Universal life --------- Correct Answer ---------- Level term

An insured's premium increases as a result of her age. Which type of policy does she have?

• Age-oriented
• Increasing Term
• Age-based
• Attained Age --------- Correct Answer ---------- Attained Age

Which of the following statements about replacement of existing life insurance is CORRECT? --------- Correct Answer ---------- Both the applicant for insurance and the insurance producer must sign a statement stating whether existing insurance is to be replaced.

Which of the following reports may include information obtained by a telephone call to the proposed insured?

• Medical Information Bureau (MIB) report
• Attending physician's report
• Inspection report
• Precertification Review --------- Correct Answer ---------- C

The purpose of the Medical Information Bureau (MIB) is to:

• recommend the premium rates for health policies issued to substandard risks
• share medical data among member companies
• provide background data for large group health plans
• provide actuarial data on dread diseases --------- Correct Answer ---------- B
• / 4

The Waiver of Premium provision of a life policy allows the insurer to take which of the following actions?

• Waive an insured's premiums if the insured becomes totally disabled before a certain

age

• Waive an insured's premiums if the insured becomes partially disabled for a minimum

time

• Increase an insured's coverage at an attained age without imposing a premium

increase

• Reduce an insured's premiums if the insured pays them annually instead of monthly -

-------- Correct Answer ---------- A

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:

• age
• "primary insurance amount"
• "fully insured" or "currently insured" status
• sex --------- Correct Answer ---------- D

The PRIMARY purpose of an inspection report is to assess an applicant's:

• credit rating
• personal characteristics
• job performance
• health profile --------- Correct Answer ---------- B

If a policy contains a Guaranteed Insurability rider, the insured has the right to

purchase:

• additional coverage when the insured reaches retirement age
• additional coverage whenever the insured changes jobs
• additional coverage at specified ages
• coverage on the insured's children within thirty-one days after they are born ---------

Correct Answer ---------- C

Which of the following statements is NOT correct about representations?

• They can be a part of the contract.
• They are true in every respect.
• They are assumed to be accurate.
• They influence the insurer's acceptance of the risk. --------- Correct Answer ---------- B

If an Adjustable Life policyowner makes an additional premium payment, the policy may

be affected in all of the following ways EXCEPT the:

• premium paying period may decrease
• value of the Nonforfeiture Options may decrease
• face amount may increase
• length of coverage may increase --------- Correct Answer ---------- B
• / 4