PRIMERICA LIFE INSURANCE EXAM/Primerica - Life Insurance Exam/Primerica Practice Test/Primerica Practice test part 1/Primerica exam 2 Questions And Answers/Primerica - Exam test Questions And Answers/PRIMERICA EXAM QUESYIONS AND ANSWERS/Primerica Practice

What is insurance? - Answer- Transfer of the possibility of loss (risk) to an insurance company. What is a risk? - Answer- The uncertainty of financial loss There are two types of loss - Answer- Pure and Speculative Which type of loss is insurable? - Answer- Pure Why is Pure loss insurab...

The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - Answer- conditional receipt Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - Answer...

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a) Estate liquidation b) Nonpayment of premium ...

401k plan - Answer- A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment - Answer- Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: ...

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called - Answer- Cost of living rider. What method is used to determine the taxable portion of each annuity payment? - Answer- The exclusion r...

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract featu...

Guaranteed insurability option - Answer- An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options ...

Which of the following is the best reason to purchase life insurance rather than annuities? - Answer- to create an estate After approval by the national Association of insurance commissioners the current buyers guide cannot be used for longer than? - Answer- What type of account will most lik...

Which statement is FALSE concerning insurance company regulations? A.) Insurers may not advertise their membership in the Guarantee Association B.) An insurer suffering from an impairment of their minimum required paid-in capital is labeled solvent C.) The commissioner may begin conservation pr...

The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the: a. Counties b. Federal Government c. Insurers in a state d. States - Answer- ? Circulating deceptive sales material to the public is what t...

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost? - Answer- indemnity Which of the following allows the insurer to relieve a minor insured from premium payments if the mino...

An IRA purchased by a small employer to cover employees is known as a - Answer- simplified employee pension plan The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement optio...

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...