primerica exam review 2023 with correct answers

1. If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be: Authorized 2. A participating insurance policy may do which of the following?: Pay dividends to the policy owner 3. An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?: Universal life 4. All of the following are examples of third-party ownership of a life insur- ance policy EXCEPT: An insured borrows money from the back and makes a collateral assignment of a part of the death benefit to secure the loan. 5. Which statement is NOT true regarding a Straight Life policy?: Its premium steadily decreases over time, in response to its growing cash value. 6. An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?: $100,000 7. A person takes out a loan in order to pay off his house. He dies several years later, having paid off only a small portion of the debt. Which of the following is true?: If the lender has credit insurance, this amount will be paid to the lender. 8. Two individuals are in the same risk and age class; yet, they are charged different rates of their insurance policies die to an insignificant factor. What is this called?: Discrimination 9. A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy: Required a premium increase each renewal. 10. If a consumer requests additional information concerning an investiga- tion consumer report, how long does the insurer or reporting agency have to comply?: 5 days 11. How is the Insurance Guaranty Association funded?: By its members-au- thorized insurers 12. An individual has just borrowed $10,000 from his bank on a 5-year install- ment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?: Decreasing term 13. After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?: Monthly premium waiver and monthly income 14. All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT: Dividends from a mutual insurer. 15. The type of policy that can be changed from one that does not accumulate cash value to the one that does is a: Convertible Term Policy. 16. After its issuance, the temporary work authority expires after how many days: 180 days not 60 17. All of the following would be considered an insurance transaction EX- CEPT: Obtaining an insurance license.