PRIMERICA EXAM 1 Questions with Correct
Answers
Churning
Agent McButch uses his big size and implication of his "connections" to intimidate
applicants into purchasing life insurance from him. Which unfair trade practice is this an
example of?
A- Churning
B- Misrepresentation
C- Coercion
D-Fraud
An automobile accident
A loss resulting from which of the following would qualify for the accidental death rider
coverage?
A- A health condition
B- A disability
C- A hazardous hobby
D- An automobile accident
Universal Life
Which of the following policies can be described as a flexible
premium adjustable life policy?
A- Term Life
B- Credit Life
C- Universal Life
D- Whole Life
,Protect the general public
What is the purpose of requiring licenses for persons who transact Insurance?
A- Protect the general public
B- Be able to collect commissions
C- Generate income for the Department of Insurance
D- Protect insurance companies from incompetent insurance
producers
Term insurance
Which of the following types of insurance products would be
appropriate for an individual with a low income and high insurance
needs?
A-Term insurance
B- Straight whole life
C- Paid-up at 65 insurance
D- A variable annuity
Authorized
Which of the following is NOT an example of the company's
location of incorporation?
A- Foreign
B- Alien
C- Authorized
D- Domestic
Paid-up additions
, Which dividend option will increase the death benefit?
A- Reduced paid up
B- Paid-up additions
C- Accumulation
D- Extended term
Single premium policy
A whole life policy that will generate immediate cash value is a
A- Single premium policy.
B- Continuous premium policy.
C- Variable life policy.
D- Limited-pay policy.
The policyowner at any time during the life of the insured
Which of the following has the right to change a settlement option in a life insurance policy?
A- The insured
B- A beneficiary at any time
C- The policyowner at any time during the life of the insured
D- A beneficiary after the policyowner's death
Premium payment period
What is the difference between a straight life policy and a 20-pay
whole life policy?
A- The benefit settlement option
B- The face amount and cash value
C- Policy maturity date
D- Premium payment period
Answers
Churning
Agent McButch uses his big size and implication of his "connections" to intimidate
applicants into purchasing life insurance from him. Which unfair trade practice is this an
example of?
A- Churning
B- Misrepresentation
C- Coercion
D-Fraud
An automobile accident
A loss resulting from which of the following would qualify for the accidental death rider
coverage?
A- A health condition
B- A disability
C- A hazardous hobby
D- An automobile accident
Universal Life
Which of the following policies can be described as a flexible
premium adjustable life policy?
A- Term Life
B- Credit Life
C- Universal Life
D- Whole Life
,Protect the general public
What is the purpose of requiring licenses for persons who transact Insurance?
A- Protect the general public
B- Be able to collect commissions
C- Generate income for the Department of Insurance
D- Protect insurance companies from incompetent insurance
producers
Term insurance
Which of the following types of insurance products would be
appropriate for an individual with a low income and high insurance
needs?
A-Term insurance
B- Straight whole life
C- Paid-up at 65 insurance
D- A variable annuity
Authorized
Which of the following is NOT an example of the company's
location of incorporation?
A- Foreign
B- Alien
C- Authorized
D- Domestic
Paid-up additions
, Which dividend option will increase the death benefit?
A- Reduced paid up
B- Paid-up additions
C- Accumulation
D- Extended term
Single premium policy
A whole life policy that will generate immediate cash value is a
A- Single premium policy.
B- Continuous premium policy.
C- Variable life policy.
D- Limited-pay policy.
The policyowner at any time during the life of the insured
Which of the following has the right to change a settlement option in a life insurance policy?
A- The insured
B- A beneficiary at any time
C- The policyowner at any time during the life of the insured
D- A beneficiary after the policyowner's death
Premium payment period
What is the difference between a straight life policy and a 20-pay
whole life policy?
A- The benefit settlement option
B- The face amount and cash value
C- Policy maturity date
D- Premium payment period
