Primerica- Life Insurance Practice Test Graded A+ 2023

The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - ANSWER-conditional receipt Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - ANSWER-representations An annuity is considered fixed when it does all of the following EXCEPT - ANSWER-provides the annuitant with an interest rate that is the lesser of the guaranteed or current rate The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called - ANSWER-continuous premium (straight) life The policy and a copy of the application, along with any riders and amendments, is called the - ANSWER-entire contract Money borrowed from the policy's cash value is - ANSWER-not taxable Which of the following annuity products requires an agent to hold a securities license? - ANSWER-variable annuities Which type of annuity settlement stops when the annuitant dies? - ANSWER-life income annuity At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty? - ANSWER-59.5 Which settlement option guarantees an income for 2 or more recipients for as long as they live - ANSWER-joint and survivor Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests? - ANSWER-buy-sell agreement Which of the following would be considered a flexible premium policy? - ANSWER-universal life If an annuitant dies during the accumulation period, what will the beneficiary receive? - ANSWER-either the cash value or the premiums paid, whichever is greater Any insurer who is NOT approved to do business in this state is considered - ANSWER-nonadmitted To prevent people from profiting from a loss, insurers must be certain - ANSWER-insurable interest exists If a misstatement of age is discovered during the processing of a life insurance claim, what will the insurer do? - ANSWER-adjusts the death benefit based on the premiums that were paid Which of the following allows an insurance company to deny coverage if the insured's death occurs in a war? - ANSWER-policy exclusions Each of the following is a typical characteristic of group life insurance EXCEPT - ANSWER-evidence of insurability is usually required A life settlement opinion that pays out the death benefit incrementally, in a specified amount until all of the proceeds are exhausted, is called - ANSWER-fixed-amount installments A life insurance death benefit paid in a lump sum to a beneficiary is - ANSWER-not subject to any taxes Which of the follow is NOT a nonforfeiture option in whole life policies? - ANSWER-accumulation at interest Which of the following indicates the person upon whose life the annuity income amount is determined? - ANSWER-annuitant An annuity that is purchased with a lump-sum payment, and that begins income payments within one year is a - ANSWER-single premium immediate annuity Which statement is INCORRECT concerning policy dividends? - ANSWER-the insurer may guarantee dividends What is the risk classification for those who are insurable, but have a higher than average risk? - ANSWER-substandard