PRIMERICA LIFE AND INSURANCE EXAM 2024 | ACCURATE CURRENTLY TESTING VERSION WITH A STUDY GUIDE AND KNOWLEDGE FLASHCARDS | ACCURATE AND VERIFIED FOR GUARANTEED PASS | LATEST UPDATE

PRIMERICA LIFE AND INSURANCE EXAM 2024 | ACCURATE
CURRENTLY TESTING VERSION WITH A STUDY GUIDE AND
KNOWLEDGE FLASHCARDS | ACCURATE AND VERIFIED
FOR GUARANTEED PASS | LATEST UPDATE



The authority granted to an agent through the agent's contract is referred to as
q q q q q q q q q q q q q




a. Absolute authority q




b. Express authority q




c. Apparent authority q




d. Implied authority q




B. Express authority
q q




express powers are written into the contract between the insurer and the agent
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Insurancepolicies are not drawn up though negotiations, and an insured has little to sayabout its
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provisions. What contract characteristic does this describe?
q q q q q q q




A. Unilateral
q




b. Conditional
c. Personal
d. Adhesion
D. Adhesion
q




a contract of adhesion is prepared byonly the insurer; the insured's only option is to accept or reject the
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policy as its written
q q q q




Which of the following insurers are owned bystockholders who have the usual rights of ownership,
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including the right of voting?
q q q q q




A. Reciprocal
q




b. Fraternal
c. Stock
d. Mutual
C. Stockq




onlystock insurance companies are owned and controlled by stockholders
q q q q q q q q q




Which of the followingbest describes the concept that the insured pays a small amount of
q q q q q q q q q q q q q q q

,premium for a large amount of risk on the part of the insurance company?
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A. Subrogation
q

,b. Warranty
c. Aleatory
d. Adhesion
C. Aleatory
q




an insurance contract is an aleatorycontract in that it requires a relativelysmall amount of premium for
q q q q q q q q q q q q q q q q q




a large risk
q q q




When an insured makes truthful statements on the application for insurance and pays the required
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premium, it is known as which of the following?
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A. Legal purpose
q q




b. Contract of adhesion q q




c. Acceptance
d. Consideration
D. Consideration
q




consideration is somethingof value that each partygives to the other. The consideration on the part of
q q q q q q q q q q q q q q q q q




the insured is the payment of premium and the representations made in the application
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Which of the following would qualify as a competent party in an insurance contract?
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A. The applicant is intoxicated at the time of application
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b. The applicant is 12 year old student
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c. The applicant is under the influence of a mind-impairing medication at the time of application
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d. The applicant has a prior felony conviction
q q q q q q




D. The applicant has a prior felony conviction
q q q q q q q




when an insurer and insured enter into a contract, both parties must be legal of age and mentally
q q q q q q q q q q q q q q q q q




competent. It is legal for a person convicted of a felony to buy an insurance contract. An intoxicated
q q q q q q q q q q q q q q q q q q




person, however, maynot be mentallycompetent, a 12 year old student is considered to be underage in
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most states and a person under mind-impairing medication most likely would not be mentally
q q q q q q q q q q q q q q




competent
q




An insurer neglects to paya legitimate claim that is covered under the terms of the policy. Which of the
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following insurance principles has the insurer violated?
q q q q q q q




A. Representation
q




b. Adhesion
c. Consideration
d. Good health q

, C. Consideration
q




the binding force in any contract is consideration. Consideration on the part of the insureds the
q q q q q q q q q q q q q q q




payment of premiums and the health representations made in the application. Consideration on the
q q q q q q q q q q q q q q




part of the insurer is the promise to pay in the even of loss
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Which of the following is a primary source of information used for insurance underwriting?
q q q q q q q q q q q q q




A. Application
q




b. Applicant interviews
q q




c. Medical records.
q q




D. Private investigations
q q




A. Application
q




the application contains most of the information used for underwriting purposes. This is why its
q q q q q q q q q q q q q q




completeness and accurarcy are so critical
q q q q q q




An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from
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the insurance companythat was not taxable. This year, she did not receive a check from the insurer.
q q q q q q q q q q q q q q q q q q




From what type of insurer did the insured purchase the policy?
q q q q q q q q q q q




A. Mutual
q




b. Reciprocal
c. Nonprofit service organization q q




d. Stock
A. Mutual
q




funds not paid out after paying claims and other operating costs are returned to the policyowners in the
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form of a dividend. If all funds are paid out, no dividends are paid
q q q q q q q q q q q q q q




Following a career change, an insured is no longer required to perform manyphysical activities, so he
q q q q q q q q q q q q q q q q




has implemented a program where he walks and jogs for 45 minutes each morning. The insured has
q q q q q q q q q q q q q q q q q




also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario
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describe?
q




A. Retention
q




b. Reduction
c. Transfer
d. Avoidance