PRIMERICA Test 1 Questions with Correct
Answers
When may a representation be withdrawn?
prior to issuance of the policy
An intentional or unintentional concealment entitle the affected party to which of the
following?
rescission of a contract
When would a misrepresentation on an insurance application be considered fraud?
If it is intentional and material
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable.What contract characteristic does
this describe?
Conditional
Which of the following would qualify as a competent party in an insurance contract?
The applicant has a prior felony conviction
Which of the following best describes a misrepresentation?
A statement intended to distract, mislead, or deceive a party to a contract
A person caught violating provisions regarding misrepresentation could be subject to
a fine up to $25,000
Which of the following best describes the aleatory nature of an insurance contract?
exchange of unequal values
Answers
When may a representation be withdrawn?
prior to issuance of the policy
An intentional or unintentional concealment entitle the affected party to which of the
following?
rescission of a contract
When would a misrepresentation on an insurance application be considered fraud?
If it is intentional and material
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable.What contract characteristic does
this describe?
Conditional
Which of the following would qualify as a competent party in an insurance contract?
The applicant has a prior felony conviction
Which of the following best describes a misrepresentation?
A statement intended to distract, mislead, or deceive a party to a contract
A person caught violating provisions regarding misrepresentation could be subject to
a fine up to $25,000
Which of the following best describes the aleatory nature of an insurance contract?
exchange of unequal values
