PRIMERICA LIFE INSURANCE STATE
EXAM QUESTIONS AND ANSWERS
Conditional receipt -ANSWER- The applicant is covered by the insurance company as
of the date of the application if the applicant is insurable at the classification for which
the policy was applied.
Law of large numbers -ANSWER- states that the larger the number of people with a
similar exposure to loss, the more predictable actual losses will be.
Insolvent -ANSWER- If an insurer's legal reserve funds are less than the minimum
required by law, the company is impaired in its ability to pay claims
Decreasing term coverage -ANSWER- Is commonly purchased to insure the payment of
a mortgage or other debts.
Insurable interest -ANSWER- In life insurance, must exist between the policy owner and
the insured at the time of applications; however, once a life insurance policy has been
issued, the insurer must pay the policy benefit, Whether or not exists.
Deferred Annuity -ANSWER- An annuity in which the income payments begin sometime
after one year from the date of purchase. deferred annuities can be funded with a single
lump sum payment so it is referred to as a single premium differed annuities.
Human life values approach -ANSWER- Calculates an individual's life value by looking
at the insureds future wages, inflation, the number of years to retirement, and the time
value of money.
What time must the producer present the applicant with a notice regarding replacement
of life insurance -ANSWER- Producers must present to the applicant a notice regarding
replacement that is signed by both the applicant and the producer. A copy must be left
with the applicant.
Risk -ANSWER- Is the uncertainty or chance of a loss occurring.
MIB (medical information bureau -ANSWER- MIB is a nonprofit trade organization which
receives adverse medical information from insurance companies and maintains
confidential medical impairment information on individuals
Perjury -ANSWER- If a person signs a fraudulent claim form,that person may be found
guilty
EXAM QUESTIONS AND ANSWERS
Conditional receipt -ANSWER- The applicant is covered by the insurance company as
of the date of the application if the applicant is insurable at the classification for which
the policy was applied.
Law of large numbers -ANSWER- states that the larger the number of people with a
similar exposure to loss, the more predictable actual losses will be.
Insolvent -ANSWER- If an insurer's legal reserve funds are less than the minimum
required by law, the company is impaired in its ability to pay claims
Decreasing term coverage -ANSWER- Is commonly purchased to insure the payment of
a mortgage or other debts.
Insurable interest -ANSWER- In life insurance, must exist between the policy owner and
the insured at the time of applications; however, once a life insurance policy has been
issued, the insurer must pay the policy benefit, Whether or not exists.
Deferred Annuity -ANSWER- An annuity in which the income payments begin sometime
after one year from the date of purchase. deferred annuities can be funded with a single
lump sum payment so it is referred to as a single premium differed annuities.
Human life values approach -ANSWER- Calculates an individual's life value by looking
at the insureds future wages, inflation, the number of years to retirement, and the time
value of money.
What time must the producer present the applicant with a notice regarding replacement
of life insurance -ANSWER- Producers must present to the applicant a notice regarding
replacement that is signed by both the applicant and the producer. A copy must be left
with the applicant.
Risk -ANSWER- Is the uncertainty or chance of a loss occurring.
MIB (medical information bureau -ANSWER- MIB is a nonprofit trade organization which
receives adverse medical information from insurance companies and maintains
confidential medical impairment information on individuals
Perjury -ANSWER- If a person signs a fraudulent claim form,that person may be found
guilty
