Primerica Life & Health Insurance Exam - Multiple choice with Verified Answers | Latest 2023/2024

Primerica Life & Health Insurance Exam - Multiple choice with Verified Answers | Latest 2023/2024 If the agent fails to obtain an applicant's signature on the application, the agent must: a) Sign the application, stating it was by the agent b) Send the application to the insurer with a note explaining the absence of the signature c) Return the application for a signature d) Sign the application for the applicant. -- Answer: C All applications must have the appropriate authorized signature Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid: a) For 20 years or until death, whichever occurs first b) Until the policy owner's age is 65 c) For 20 years d) Until the policy owner's age is 100, when the policy matures -- Answer: A Under a 20-pay life policy, all of the premiums necessary to cause the policy to endow at the insured's age 100 are paid during the first 20 years: however, if the insured dies before all of the planned premiums are paid; the beneficiary will receive the face amount as a death benefit Based on Human Life Value Approach, which of the following is not used to calculate and individuals' life value? a)Predicted needs of the family after the insured's death b) Insured's current and future income c) Insured's anbnual expenses d) Effect of inflation on income over time -- Answer: A The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. Predicted needs of the family after the insured's death are used in the needs approach. Waiter purchased a 15-year level term life insurance policy with a face amount of 100,000. The policy contained an accidental death rider, offering a double indemnity benefit. Waiter was severely injured in an auto accident, and after 10 weeks of hospitalization, he died from the injuries. What amount would his beneficiary receive as a settlement? a) 100,000 plus the total of paid premiums b) 0 c) 100,000 d) 200,000 -- Answer: D The beneficiary would most likely receive twice the face value of the policy since his fatal injuries were caused by an accident and he died within the 90 day benefit limit stipulated in most policies. All of the following statements concerning Waiver of Premium riders are correct EXCEPT: a) Once activated, the Waiver of Premium will continue until the insured's recovery or the maturity of the policy whatever occurs first b) An insured who has recovered from a disabling injury will be required to repay the insurer for any premiums that were waived c) Waiver of Premium riders require that disablement needs to last for a certain period of time d) There is a maximum age limit for the Waiver of Premium rider to activate. -- Answer: B Premiums which are waived under the rider do not require repayment upon the insured's recovery All of the following statements are Medicare supplement insurance policies are correct EXCEPT a) Medigap policies cover the cost of extended nursing home care b) Medigap policies cover Medicare deductibles and copayments c) Medigap policies supplement Medicare payments d) Medigap policies are issued by private insurers -- Answer: A Medigap policies do not cover the cost of extended nursing home care. Medigap plans are designed to fill the gap in coverage attributable to Medicare's deductibles, copayment requirements, and benefit periods. These plans are issued by private insurance companies Who must a business entity designate as being responsible for its compliance with insurance laws? a) Anyone b) An employee approved by the commissioner c) A licensed producer d) A lawyer -- Answer: C The business entity must have designated a licensed producer as responsible for the business entity's compliance with the insurance laws, rules, and regulations of New Hampshire. Which of the following health care plans would most likely provide the insurer/subscriber with comprehensive health care coverage? a) Medical-surgical expense plan b) Basic medical expense plan c) Health Maintenance Organization plan d) Group dental insurance plan -- Answer: C HMO's provide a package of comprehensive health care services that include routine physicals, immunizations, well baby care, family planning, etc. as well as the treatment of sickness and injury Andrea wants to apply for an individual's life insurance policy. She has a nearly flawless health history and wants only limited coverage. Which type of information is the least that would probably be required? a) Application for insurance b) Attending physician's statement c) Statement of good health d) Paramedical report -- Answer: A When smaller amounts of insurance are requested and there is no prior medical history of concern, the home office underwriter may make an underwriting decision solely on the basis of the application If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is fixed, the insurance company should do which of the following: a) Adjust the benefit in accordance with the increased risk b) Cancel the policy c) Increase the premium d) Exclude coverage for on-the-job delivery -- Answer: A A part of the premium rating concerns the hazard of occupation Which of the following is an example of a limited-pay life policy? a) Level Term Life b) Striaght Life c) Life Paid-up at Age 65 d) Renewable Term to Age 70 -- Answer: C Limited pay whole life premiums are all paid by the time the insured reaches Age 65. The policy endows when the insured turns 100. It is the premium paying period that is limited, not the maturity Which of the following statements is correct concerning taxation of a long-term care insurance? a) Excessive benefits may be taxable b) Benefits may be taxable as ordinary income c) Premiums may be taxable as income d) Premiums are not deductible in any case -- Answer: A Regardless of whether or not the insured can deduct individual long-term care premiums, the benefits are received income tax free by the individual. Excessive benefits as determined by statute are taxable as ordinary income Joe Schmoe thinks it would be a good idea to use an assumed business name for his insurance business, instead of his legal name. What must he do before he can do business under the name of Joe Insurakon?