Primerica Practice test part 3 Questions with correct Answers

Credit Life insurance a)Is purchased on an installment basis. b) Insures the life of a creditor. c) Has a maximum term for insurance of 20 years. d) Insures the life of a debtor. - Answer- d In Texas, how is the Commissioner of Insurance placed in office? a) Appointed by the Governor for a term of 2 years b) Appointed by the Governor for a term of 4 years c) Appointed by the Senate for a term of 2 years d) By election, at the same election when other state officials are chosen - Answer- a In Texas, the Commissioner of Insurance is a) Elected by the state legislature's Banking and Insurance Committee. b) Elected by Texas voters. c) Appointed by the Governor. d) Appointed by the Insurance and Industry Committee of the state legislature - Answer- c All of the following are considered unfair or deceptive acts in connection with the sale of insurance EXCEPT a) Lacking standards for the investigation of an insured's claims. b) Attempting to settle a claim in which liability is clear. c) Stating facts or provisions in a way that misrepresents the true nature of the policy. d) Delaying a settlement because there is other insurance that will satisfy any portion of the loss. - Answer- b An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? a) Reciprocal b) Nonprofit service organization c) Stock d) Mutual - Answer- d Which of the following types of insurance policies is most commonly used in credit life insurance? a) Increasing term b) Whole life c) Equity indexed life d) Decreasing term - Answer- d Which of the following occupations would NOT directly help to qualify someone for the office of Commissioner of Insurance? a) Executive in business administration b) Practicing attorney c) Insurance agent d) Certified public account - Answer- c Which of the following must an insurer obtain in order to transact insurance within a given state? a) Certificate of authority b) Producer's certificate c) Business entity license d) Insurer's license - Answer- a How long must producer maintain records of continuing education course completion? a) 1 year b) 3 years c) 4 years d) 5 years - Answer- c The Insurance Commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every a) Year. b) 2 years. c) 3 years. d) 5 years. - Answer- d An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming? a) Alien b) Domestic c) Unauthorized d) Foreign - Answer- d Which of the following would be required to be licensed as an insurance producer? a) An insurance company director who performs executive, administrative and managerial duties b) A salaried employee who advertises and solicits insurance c) A person whose activities are limited to producing insurance advertisements d) A salaried full-time employee who furnishes information for group insurance - Answer- b Which of the following is the closest term to an authorized insurer? a) Certified b) Licensed c) Legal d) Admitted - Answer- d Which of the following CANNOT be included along with illustrations used to sell life insurance? a) Vanishing premium information b) Name of the insurer c) Rating information d) Original death benefit - Answer- a An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? a) Legal, provided that the information can be verified b) Illegal until endorsed by the Guaranty Association c) Legal, provided that the other insurers are paid royalties for the usage of their names d) Illegal under any circumstances - Answer- d Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment? a) 14 b) 28 c) 30 d) 31 - Answer- d All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT a) An offer of employment. b) Stocks, securities, or bonds. c) An offer to share in commissions generated by the sale. d) Dividends from a mutual insurer. - Answer- d After filing a claim, an insured tells the insurer that there is more than one insurance policy in force. That insurer sets aside the claim until it hears what the other company will pay. The insurer's action will be classified as a) Coordinated. b) Proactive. c) Unfair. d) Prudent. - Answer- c What is a foreign insurer? a) An insurer with a home office in another country b) An insurer with licensed agents doing business in other countries c) An insurer with licensed agents who are citizens in more than one country d) An insurer with a home office in another state - Answer- d If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be a) Qualified. b) Approved. c) Authorized. d) Certified. - Answer- c What provision in a life or health insurance policy extends coverage beyond the premium due date? a) Free look b) Automatic premium loan c) Waiver of premium d) Grace period - Answer- d If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement? a) Commissioned advertisement b) Paid endorsement c) Insurer is not responsible for the contents of the testimonial d) The author is the employee of the insurer - Answer- b On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of a) Concealment. b) Unfair claim practice. c) Rebating. d) Misrepresentation. - Answer- d An agent completed a CE course in 2014. Until what year must the agent keep the records of completion? a) 2015 b) 2016 c) 2018 d) 2024 - Answer- c For which of the following actions can an agent's license be suspended or revoked? a) Rebates of premiums b) Misdemeanors c) Unintentional violations of state laws d) Misstatements on the application - Answer- a