PRIMERICA LIFE INSURANCE FOCUSED
EXAM QUESTIONS AND ANSWERS
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is
called - ANSWER-Single premium whole life.
To which of the following products does the Replacement Regulation apply? -
ANSWER-Whole life insurance
An employee will be taxed on the cost of group life insurance paid by the employer if the
amount of coverage - ANSWER-$50,000
An applicant buys a nonqualified annuity, but dies before the starting date. For which of
the following beneficiaries would the interest accumulated in the annuity NOT be
taxable? - ANSWER-Spouse
An agent is a legal person who acts on behalf of - ANSWER-The principal.
An applicant buys a nonqualified annuity, but dies before the starting date. For which of
the following beneficiaries would the interest accumulated in the annuity NOT be
taxable? - ANSWER-Spouse
Which of the following best defines earned surplus? - ANSWER-Insurer's unassigned
funds.
The paid-up addition option uses the dividend - ANSWER-To purchase a smaller
amount of the same type of insurance as the original policy.
An applicant for insurance is requesting more information from her agent about a claim
that is currently being settled. Within what time period must the agent respond? -
ANSWER-15 days
Which of the following is NOT a legitimate use of annuities by businesses? - ANSWER-
Creating a tax shelter
In determining how material a piece of information is to each party of a contract, the
value is not determined by the event itself, but solely by which of the following? -
ANSWER-Influence this information would have in forming an estimate of the
advantages or the disadvantages of the contract.
Which of the following statements concerning buy-sell agreements is true? - ANSWER-
Buy-sell agreements are normally funded with a life insurance policy.
EXAM QUESTIONS AND ANSWERS
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is
called - ANSWER-Single premium whole life.
To which of the following products does the Replacement Regulation apply? -
ANSWER-Whole life insurance
An employee will be taxed on the cost of group life insurance paid by the employer if the
amount of coverage - ANSWER-$50,000
An applicant buys a nonqualified annuity, but dies before the starting date. For which of
the following beneficiaries would the interest accumulated in the annuity NOT be
taxable? - ANSWER-Spouse
An agent is a legal person who acts on behalf of - ANSWER-The principal.
An applicant buys a nonqualified annuity, but dies before the starting date. For which of
the following beneficiaries would the interest accumulated in the annuity NOT be
taxable? - ANSWER-Spouse
Which of the following best defines earned surplus? - ANSWER-Insurer's unassigned
funds.
The paid-up addition option uses the dividend - ANSWER-To purchase a smaller
amount of the same type of insurance as the original policy.
An applicant for insurance is requesting more information from her agent about a claim
that is currently being settled. Within what time period must the agent respond? -
ANSWER-15 days
Which of the following is NOT a legitimate use of annuities by businesses? - ANSWER-
Creating a tax shelter
In determining how material a piece of information is to each party of a contract, the
value is not determined by the event itself, but solely by which of the following? -
ANSWER-Influence this information would have in forming an estimate of the
advantages or the disadvantages of the contract.
Which of the following statements concerning buy-sell agreements is true? - ANSWER-
Buy-sell agreements are normally funded with a life insurance policy.
