Primerica Life Insurance Possible Exam Questions with complete solutions | Latest 2023/2024

Primerica Life Insurance Possible Exam Questions with complete solutions | Latest 2023/2024 What is insurance? -- Transfer of the possibility of loss (risk) to an insurance company. What is a risk? -- The uncertainty of financial loss There are two types of loss -- Pure and Speculative Which type of loss is insurable? -- Pure Why is Pure loss insurable? -- Loss must be financial and uncertain. No financial gain can occur. What causes loss? -- Peril; such as fire, accident or flood What causes a peril? -- A hazard What is a hazard? -- Increases the likelihood of a loss; such as smoking What is the concept called, that predicts the appropriate number of deaths that should occur within a similar group of people (exposure) within a given period of time? -- Law of Large Numbers What is adverse selection? -- People in bad health keep their policy in force longer than people in good health As an agent, you are a legal representative of the ______________. -- company The person who pays for the policy of insurance is the -- policy owner The _____________ is the person who receives the benefits from the insurance policy - - beneficiary The person covered by the insurance policy is the ____________. -- insured The insurance company is the ___________. -- insurer To buy insurance, the policyowner must have ______________ in the insured at the _________________________________________________. -- insurable interest; time of purchase but not at time of insured's death. The 5 recognizable areas of insurable interest are ___________. -- 1. your own life 2. family members 3. business partners 4. key employee cial obligation.