LIFE INSURANCE PRACTICE EXAM
PRIMERICA QUESTIONS WITH
COMPLETE SOLUTIONS
A life settlement option 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.
Information collected from employment records, credit reports or other sources that
includes written or oral information concerning credit, character, reputation or habits is
called a(n) - ANSWER-Investigative Consumer Report.
An annuity that is purchased with a lump-sum payment and begins income payments
within one year is a - ANSWER-Single premium immediate annuity.
Which statement is INCORRECT concerning policy dividends? - ANSWER-The
insurance company may guarantee dividends.
What is the risk classification for those who are insurable, but present a higher than
average risk? - ANSWER-Substandard
At age 25, an individual purchased a decreasing term policy. What does that say about
the coverage and the premium? - ANSWER-The coverage decreases but the premium
stays the same.
Underwriting is the process of - ANSWER-Determining the insurance company's risk
regarding a proposed insured.
23. A whole life product that covers two lives and provides for payment of the death
benefit on the death of the first insured is called - ANSWER-Joint Life.
A producer delivers a policy to an insured, but nine days later the insured returns the
policy and wants a complete refund. What provision allows the insured to return the
policy? - ANSWER-Free Look
Which of the following retirement plans is a special tax favored plan for nonprofit,
charitable, educational or religious groups? - ANSWER-403(b) Tax-sheltered Annuity
(TSA)
PRIMERICA QUESTIONS WITH
COMPLETE SOLUTIONS
A life settlement option 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.
Information collected from employment records, credit reports or other sources that
includes written or oral information concerning credit, character, reputation or habits is
called a(n) - ANSWER-Investigative Consumer Report.
An annuity that is purchased with a lump-sum payment and begins income payments
within one year is a - ANSWER-Single premium immediate annuity.
Which statement is INCORRECT concerning policy dividends? - ANSWER-The
insurance company may guarantee dividends.
What is the risk classification for those who are insurable, but present a higher than
average risk? - ANSWER-Substandard
At age 25, an individual purchased a decreasing term policy. What does that say about
the coverage and the premium? - ANSWER-The coverage decreases but the premium
stays the same.
Underwriting is the process of - ANSWER-Determining the insurance company's risk
regarding a proposed insured.
23. A whole life product that covers two lives and provides for payment of the death
benefit on the death of the first insured is called - ANSWER-Joint Life.
A producer delivers a policy to an insured, but nine days later the insured returns the
policy and wants a complete refund. What provision allows the insured to return the
policy? - ANSWER-Free Look
Which of the following retirement plans is a special tax favored plan for nonprofit,
charitable, educational or religious groups? - ANSWER-403(b) Tax-sheltered Annuity
(TSA)
