Primerica Life & Health Insurance (multiple choice mostly) Questions With Complete Solutions

If the agent fails to obtain an applicant's signature on the application, the agent must: a) Sign the application, stating it was by the agent b) Send the application to the insurer with a note explaining the absence of the signature c) Return the application for a signature d) Sign the application for the applicant. correct answer: Answer: C All applications must have the appropriate authorized signature Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid: a) For 20 years or until death, whichever occurs first b) Until the policy owner's age is 65 c) For 20 years d) Until the policy owner's age is 100, when the policy matures correct answer: Answer: A Under a 20-pay life policy, all of the premiums necessary to cause the policy to endow at the insured's age 100 are paid during the first 20 years: however, if the insured dies before all of the planned premiums are paid; the beneficiary will receive the face amount as a death benefit Based on Human Life Value Approach, which of the following is not used to calculate and individuals' life value? a)Predicted needs of the family after the insured's death b) Insured's current and future income c) Insured's anbnual expenses d) Effect of inflation on income over time correct answer: Answer: A The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. Predicted needs of the family after the insured's death are used in the needs approach. Waiter purchased a 15-year level term life insurance policy with a face amount of 100,000. The policy contained an accidental death rider, offering a double indemnity benefit. Waiter was severely injured in an auto accident, and after 10 weeks of hospitalization, he died from the injuries. What amount would his beneficiary receive as a settlement? a) 100,000 plus the total of paid premiums b) 0 c) 100,000 d) 200,000 correct answer: Answer: D The beneficiary would most likely receive twice the face value of the policy since his fatal injuries were caused by an accident and he died within the 90 day benefit limit stipulated in most policies.