Primerica Life Insurance Test
The policy owner chooses the annual mode for the no payment of the
life insurance premium. For the year the owner will pay - ✔ ✔ Less
as compared to the other payment modes.
An insurance company that is owned by the policyholders is called - ✔
✔ Mutual insurer
At age 72 individuals is considering applying for MediCal so she can
afford her medical bills - ✔ ✔ The agent cannot allow the applicant
to purchase an annuity if after the purchase an annuity if after the
purchase, she wouldn't qualify for Medical
What is the most common name for a single policy that is designed to
insure two or more lives with a standard premium - ✔ ✔ Joint Life
A life insurance policy illustration may NOT include - ✔ ✔ Vanishing
premiums if the policy becomes paid up with non guaranteed elements
paying future premiums.
Any intentional and fraudulent omission on the part of one insured
entitles the insurer to - ✔ ✔ Rescind the policy
Which of the following is a correct statement about annuities - ✔ ✔
Fixed annuities do not provide protection against inflation
In a group life policy with a death benefit of more than $50,000 - ✔
✔ Premium cost above $50,000 is taxable as income to the employee
,Which of the following is consideration on the part of an insurer - ✔
✔ Paying a claim
The insured dies 6 months after the policy issue date. Upon death of
the insured, it is determined that the insured made a material
misstatement on - ✔ ✔ Rescind the policy
Which of the following policies can be described as a flexible premium
adjustable life policy - ✔ ✔ Universal life
Which of the following is true of the taxation of cash values in a
business life insurance policy - ✔ ✔ Cash values grow tax deferred.
What is the purpose of the surrender charge in a deferred annuity - ✔
✔ To compensate the company for loss of investment value
Which of the following activities of an agent would NOT be interpreted
as transacting insurance? - ✔ ✔ Establishing a list of clients
Under which of the following conditions would life insurance proceeds
be taxable by the federal government - ✔ ✔ If there is a transfer for
value
A whole life policy that will generate immediate cash value is a - ✔ ✔
Single premium policy
Which is a FALSE statement about the California Insurance
Commissioner? - ✔ ✔ The commissioner is selected by the
Governor as an appointee.
Which of the following statements describes one of the reasons
individuals purchase life insurance? - ✔ ✔ It creates an immediate
estate.
, According to the Fair Credit Reporting Act, all of the following
statements are true EXCEPT - ✔ ✔ If an applicant is declined for an
insurance policy, he or she has no right to know what was in the report.
All of the following are ways to handle risk EXCEPT - ✔ ✔
Elimination
Which of the following is the cause of loss - ✔ ✔ Peril
Because of an injury, an insured has been unable to work for 7 months.
when his life insurance premium came due, he was unable to pay, yet
the policy remained in force. the policy includes - ✔ ✔ Waiver of
premium rider.
An insured bought an insurance policy that requires him to pay $150 in
premiums on the 15th of each month. He then takes an extended
vacation and forgets to pay the premium - ✔ ✔ Grace period
the purpose of the Fair Credit Reporting Act is to - ✔ ✔ Protect
consumers against the circulation of inaccurate or obsolete personal or
financial information
A life insurance policy qualifies a Modified Endowment Contract (MEC)
if the amount of premium paid exceeds the amount that would have
provided paid up insurance in how many years - ✔ ✔ 7 years
Which of the following will be eligible for a tax sheltered annuity - ✔
✔ Public school teachers
Which of the following best describes life annuity with period certain
option - ✔ ✔ It guarantees benefit payments for life of the
annuitant for a specified period for the beneficiary
The policy owner chooses the annual mode for the no payment of the
life insurance premium. For the year the owner will pay - ✔ ✔ Less
as compared to the other payment modes.
An insurance company that is owned by the policyholders is called - ✔
✔ Mutual insurer
At age 72 individuals is considering applying for MediCal so she can
afford her medical bills - ✔ ✔ The agent cannot allow the applicant
to purchase an annuity if after the purchase an annuity if after the
purchase, she wouldn't qualify for Medical
What is the most common name for a single policy that is designed to
insure two or more lives with a standard premium - ✔ ✔ Joint Life
A life insurance policy illustration may NOT include - ✔ ✔ Vanishing
premiums if the policy becomes paid up with non guaranteed elements
paying future premiums.
Any intentional and fraudulent omission on the part of one insured
entitles the insurer to - ✔ ✔ Rescind the policy
Which of the following is a correct statement about annuities - ✔ ✔
Fixed annuities do not provide protection against inflation
In a group life policy with a death benefit of more than $50,000 - ✔
✔ Premium cost above $50,000 is taxable as income to the employee
,Which of the following is consideration on the part of an insurer - ✔
✔ Paying a claim
The insured dies 6 months after the policy issue date. Upon death of
the insured, it is determined that the insured made a material
misstatement on - ✔ ✔ Rescind the policy
Which of the following policies can be described as a flexible premium
adjustable life policy - ✔ ✔ Universal life
Which of the following is true of the taxation of cash values in a
business life insurance policy - ✔ ✔ Cash values grow tax deferred.
What is the purpose of the surrender charge in a deferred annuity - ✔
✔ To compensate the company for loss of investment value
Which of the following activities of an agent would NOT be interpreted
as transacting insurance? - ✔ ✔ Establishing a list of clients
Under which of the following conditions would life insurance proceeds
be taxable by the federal government - ✔ ✔ If there is a transfer for
value
A whole life policy that will generate immediate cash value is a - ✔ ✔
Single premium policy
Which is a FALSE statement about the California Insurance
Commissioner? - ✔ ✔ The commissioner is selected by the
Governor as an appointee.
Which of the following statements describes one of the reasons
individuals purchase life insurance? - ✔ ✔ It creates an immediate
estate.
, According to the Fair Credit Reporting Act, all of the following
statements are true EXCEPT - ✔ ✔ If an applicant is declined for an
insurance policy, he or she has no right to know what was in the report.
All of the following are ways to handle risk EXCEPT - ✔ ✔
Elimination
Which of the following is the cause of loss - ✔ ✔ Peril
Because of an injury, an insured has been unable to work for 7 months.
when his life insurance premium came due, he was unable to pay, yet
the policy remained in force. the policy includes - ✔ ✔ Waiver of
premium rider.
An insured bought an insurance policy that requires him to pay $150 in
premiums on the 15th of each month. He then takes an extended
vacation and forgets to pay the premium - ✔ ✔ Grace period
the purpose of the Fair Credit Reporting Act is to - ✔ ✔ Protect
consumers against the circulation of inaccurate or obsolete personal or
financial information
A life insurance policy qualifies a Modified Endowment Contract (MEC)
if the amount of premium paid exceeds the amount that would have
provided paid up insurance in how many years - ✔ ✔ 7 years
Which of the following will be eligible for a tax sheltered annuity - ✔
✔ Public school teachers
Which of the following best describes life annuity with period certain
option - ✔ ✔ It guarantees benefit payments for life of the
annuitant for a specified period for the beneficiary
