PRIMERICA EXAM GENERAL100% CORRECT.

PRIMERICA EXAM GENERAL100% CORRECT. . A life insurance policy has a legal purpose if both of which of the following elements exist? a) Policyowners and named beneficiaries b) Insurable interest and consent c) Underwriting and reciprocity d) Offer and counteroffer - ANSWER-Insurable interest and consent .A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as a) Survivorship insurance b) Juvenile protection provision c) Survivor protection d) Life planning - ANSWER-Survivor protection .A Return of Premium term life policy is written as what type of term coverage? a) Renewable b) Level c) Increasing d) Decreasing - ANSWER-Increasing .According to the Entire Contract provision, a policy must contain a) A declarations page with a summary of insureds. b) Buyer's guide to life insurance. c) Listing of the insured's former insurer(s) for incontestability provisions. d) A copy of the original application for insurance - ANSWER-A copy of the original application for insurance .All of the following are general requirements of a qualified plan EXCEPT a) The plan must be communicated to all employees. b) The plan must be for the exclusive benefits of the employees and their beneficiaries. c) The plan must be permanent, written and legally binding. d) The plan must provide an offset for social security benefits. - ANSWER-The plan must provide an offset for social security benefits .All of the following are true regarding a decreasing term policy EXCEPT a) The payable premium amount steadily declines throughout the duration of the contract. b) It has a lower premium than level term. c) The contract pays only in the event of death during the term and there is no cash value. d) The face amount steadily declines throughout the duration of the contract. - ANSWER-The payable premium amount steadily declines throughout the duration of the contract .All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT a) Upon conversion, the death benefit of the permanent policy will be reduced by 50%. b) Evidence of insurability is not required. c) Most term policies contain a convertibility option. d) Upon conversion, the premium for the permanent policy will be based upon attained age. - ANSWER-Upon conversion, the death benefit of the permanent policy will be reduced by 50% .All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT a) The employer can receive a current tax deduction for any contributions made to the plan. b) The plan is a legal method of accumulating money for retirement needs. c) The plan can discriminate as to who may participate. d) The plan is not approved for favorable tax treatment by the IRS. - ANSWER-The employer can receive a current tax deduction for any contributions made to the plan