Primerica Life Insurance Test QUESTIONS AND ANSWERS () (VERIFIED ANSWERS).pdf

Primerica Life Insurance Test m m m




1. An example of an alien insurer doing business in this state is one formed
m m m m m m m m m m m m m m




under the laws of: Mexico
m m m m




2. Partners in a business want to make sure that if: Buy-Sell Agreement
m m m m m m m m m m m




3. Ten years ago an insured purchased a life insurance policy designed to pay
m m m m m m m m m m m m




his family $500: Family income policy
m m m m m




4. An agent delivers a policy to an applicant who pays the initial premium but
m m m m m m m m m m m m m




refuses to submit: Consideration
m m m




5. Life settlement contracts are out into effect by which of the following: An
m m m m m m m m m m m m m




absolute assignmentm




6. A married couple wants to include the entire family in their whole life policy
m m m m m m m m m m m m m




under one rider. Which of: Family term
m m m m m m




7. Among people in the same class and life expectancy, which of the following
m m m m m m m m m m m m




factors can be used to influence premium rates?: Occupation
m m m m m m m m




1m/m14

,8. Which of the following NOT be eligible for coverage under key person: The
m m m m m m m m m m m m




owner of the shop m m m




9. An aleatory contract is based on what kind of exchange: Unequal exchanges
m m m m m m m m m m m




of values
m




10. Under what circumstances will the contingent beneficiary receive the
m m m m m m m m




death benefit: If the primary beneficiary dies before the insured
m m m m m m m m m m




11. Which of the following is NOT a component of an insurance policy premi-
m m m m m m m m m m m m




um: Number of beneficiaries
m m m m




12. A warranty may relate to which of the following: The past the present and
m m m m m m m m m m m m m m




the future will
m m




13. A college student will graduate next year. His studies have limited his
m m m m m m m m m m m m




ability to work, so he has borrowed funds to pay for his education: Modified
m m m m m m m m m m m m m m




whole life m




14. A person has a history of DUIs. To his insurer, this presents what type of
m m m m m m m m m m m m m m m




hazard: Morale m




15. Which of the following is not a type of hazard: Exposure
m m m m m m m m m m

2m/m14

,16. An applicant for a disability insurance policy has a heart condition of which
m m m m m m m m m m m m




they are unaware and therefore they answer no to the question pertaining
m m m m m m m m m m m




to heart problems on their application. Their answer is considered to bea
m m m m m m m m m m m m




: Representation
m




17. Which of the following would be considered peril: Fire
m m m m m m m m




18. Which of the following is NOT a standard exclusion in life insurance
m m m m m m m m m m m m




policies: Disabilitym




19. Joe, age 63, was disabled and can no longer work. He meets the Social
m m m m m m m m m m m m m m




Security definition of total disability. How many work credits: 40
m m m m m m m m m




3m/m14

, 20. To purchase insurance, The policy owner must face the possibility of losi
m m m m m m m m m m m




ng money or something of value in the event of loss. What is this conceptcall
m m m m m m m m m m m m m m m




ed?: Insurable interest
m m




21. When the owner of a participating whole life policy uses the dividend to
m m m m m m m m m m m m m




provide more life insurance coverage, which of the following dividend options
m m m m m m m m m m




is being used?: Paid up additions
m m m m m




22. When life insurance proceeds are used to pay inheritance taxes and federal
m m m m m m m m m m m




estate taxes, it is known as: Estate conservation
m m m m m m m




23. The entire contract includes all of the following EXCEPT: A buyers guide
m m m m m m m m m m m




24. Concerning the Family Protection Policy, all of the following statements are
m m m m m m m m m m




true EXCEPT: Children, upon reaching the age of majority, are permitted to convert
m m m m m m m m m m m m




to an individual policy with proof of insurability
m m m m m m m




25. An insured bought an insurance policy that requires him to pay $150 in p
m m m m m m m m m m m m m




remiums on the 15th of each month. He then takes an extended vacation andf
m m m m m m m m m m m m m m




orgets to pay the premium: Grace period
m m m m m m




4m/m14