Primerica Final Exam Elaboration |Question and Answer| 100% Correct

Primerica Final Exam Elaboration |Question and Answer| 100% Correct Agent/Producer *Ans* A legal representative of an insurance company; the classification of -producer- usually includes agents and brokers; agents are the agents of the insurer. Applicant or proposed insured *Ans* a person applying for insurance Broker *Ans* an insurance producer not appointed by an insurer and is deemed to represent the client Insurance policy *Ans* a contract between policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events. Insured *Ans* the person covered by the insurance policy . This person may or may not be the policyowner. Insurer (principal) *Ans* the company who issues an insurance policy policyowner *Ans* the person entitled to exercise the rights and privileges in the policy. Premium *Ans* the money paid to the insurance company for the insurance policy Reciprocity/ Reciprocal *Ans* a mutual interchange of rights and privileges. Beneficary *Ans* a person who receives the benefits of an insurance policy death benefit *Ans* the amount paid upon the death of the insured in a life insurance policy cash value *Ans* equity amount accumulated in permanent life insurance estate *Ans* a person's net worth Illustrations *Ans* presentation or deception of nonguaranteed elements of a life insurance policy life insurance *Ans* coverage on human lives liquidation *Ans* selling assets in order to raise capital Lump-sum *Ans* payment of the entire benefit in one sum Minor *Ans* a person under legal age Solvency *Ans* ability to meet financial obligations (e.g. an insurance company maintains enough assets to pay claims) accumulate *Ans* build up attained age *Ans* the insured's age at the time the policy is renewed or replaced cash value *Ans* a policy's savings element or livin