PEARSON VUE LIFE INSURANCE EXAM VE RSION 1,2

• | P a g e

PEARSON VUE LIFE INSURANCE EXAM VE RSION 1,2

AND 3 NEWEST 2025 ACTUAL EXAM COMPLETE 250

QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |ALREADY GRADED

A+||BRAND NEW!!

PEARSON VUE LIFE INSURANCE VERSION 1

With respect to the consideration clause, which of the following would be considered consideration on the part of the applicant for insurance?

• Providing warranties on the application
• Notice of policy cancellation
• Payment of premium
• Promise to renew the policy at the end of the policy period -

CORRECT ANSWER -C. Payment of premium

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

• Waiver of premium
• Guaranteed insurability
• Waiver of cost of insurance
• Payor benefit - CORRECT ANSWER -A. Waiver of premium
• / 4

• | P a g e

Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?

• It is life contingency option
• The beneficiary receives the remainder of the principal

amount upon the annuitant's death

• Payments can be made in installments and as a single cash

refund

• It does not guarantee that the entire principal amount will be

paid out - CORRECT ANSWER -D. It does not guarantee that the entire principal amount will be paid out

An insurer advertises a health policy that is covered by the Life and Health Insurance Guaranty Association. The advertisement includes a short list of benefits and approximate rates. The end of the advertisement includes statement that protection is provided by the Guaranty Association. Which of the following is true?

• Mentioning the Guaranty Association in advertisement is

considered to be unfair trade practice

• The advertisement must also include the contact information

of the association

• The advertisement must also include the contact information

of the Commissioner of Insurance

• Mentioning the Guaranty Association is mandatory when

advertising in the state of Texas - CORRECT ANSWER -A. 2 / 4

• | P a g e

Mentioning the Guaranty Association in advertisement is considered to be unfair trade practice

The commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within how many days must the hearing be held?

• 10

B.14

• 30

D.60 - CORRECT ANSWER -C.30

What is the purpose of the Life Insurance Guaranty Association?

• To help protect policyowners and beneficiaries against

financial loss caused by the insolvency of an insurance company

• To encourage life insurance to write substandard business
• To allow agents to continue to solicit insurance, even if the

company they represent is financially impaired

• To protect the reputation of the insurance Department if they

issue a Certificate of Authority to a company that becomes insolvent - CORRECT ANSWER -A. To help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company

• / 4

• | P a g e

Which of the following is a feature of a variable annuity?

• Interest rate is guarantee
• Securities license is not required
• Benefit payment amounts are not guaranteed
• Payments into the annuity are kept in the company's general

account - CORRECT ANSWER -C. Benefit payment amounts are not guaranteed

Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it?

• Elimination period
• Probationary period
• Free Look period
• Grace period - CORRECT ANSWER -C. Free look period

Which of the following is true about the requirement regarding HIV exams?

• Prior informed oral consent is required from be used the

applicant

• HIV exams may not be used as a basis for underwriting
• The applicant must give prior informed written consent
• / 4