Primerica Part 3 Exam 2024

Primerica Part 3 Exam activities of daily living (ADLs) - Answer ️️ -a person's essential activities that include bathing, dressing, eating, transferring, toileting, continence assignment - Answer ️️ -transfer of rights of policy ownership consideration - Answer ️️ -something of value that each party gives to the other (binding force in any contract). indemnity - Answer ️️ -a principle of reimbursement on which insurance is based; in the event of loss, an insurer reimburses the insureds or beneficiaries for the loss. lump sum - Answer ️️ -payment of the entire benefit in one sum minor - Answer ️️ -a person under legal age NAIC - Answer ️️ -national association of insurance commissioners, an organization composed of insurance commissioners from all states and jurisdictions formed to resolve insurance regulatory issues principal - Answer ️️ -the face value of the policy; the original amount invested before the earnings. What provision of a life insurance policy states that the application is part of the contract? - Answer ️️ -entire contract A life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specific period of time is known as the - Answer ️️ -incontestability clause When a death claim is submitted, the insurer discovered that the insured understated her age on the application for a life policy. What action will the insurer take? - Answer ️️ -Pay a reduced death benefit based on the insured's actual age. What term refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another? - Answer ️️ -assignment What is true about the free-look period in a life insurance policy? a. it starts when the application is signed b. it applies only to term life insurance policies c. it can be waived by an insurer