Primerica Life Insurance Certification
Exam Questions and Answers
The paid-up addition option uses the dividend - CORRECT ANSWER-To purchase a
smaller amount of the same type of insurance as the original policy.
An applicant for insurance is requesting more information from her agent about a claim
that is currently being settled. Within what time period must the agent respond? -
CORRECT ANSWER-15 days
Which of the following is NOT a legitimate use of annuities by businesses? - CORRECT
ANSWER-Creating a tax shelter
In determining how material a piece of information is to each party of a contract, the
value is not determined by the event itself, but solely by which of the following? -
CORRECT ANSWER-Influence this information would have in forming an estimate of
the advantages or the disadvantages of the contract.
Which of the following statements concerning buy-sell agreements is true? - CORRECT
ANSWER-Buy-sell agreements are normally funded with a life insurance policy.
When an employer offers to give an employee a wage increase in the amount of the
premium on a new life insurance policy, this is called a(n) - CORRECT ANSWER-
Executive bonus.
When a life insurance policy stipulates that the beneficiary will receive payments in
specified installments or for a specified number of years, what provision prevents the
beneficiary from changing or borrowing from the planned installments? - CORRECT
ANSWER-Spendthrift provision
When an insured under a life insurance policy died, the designated beneficiary received
the face amount of the policy, as well as a refund of all of the premiums paid. Which
rider is attached to the policy? - CORRECT ANSWER-Return of premium
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is
called - CORRECT ANSWER-Single premium whole life.
To which of the following products does the Replacement Regulation apply? -
CORRECT ANSWER-Whole life insurance
An employee will be taxed on the cost of group life insurance paid by the employer if the
amount of coverage - CORRECT ANSWER-$50,000
Exam Questions and Answers
The paid-up addition option uses the dividend - CORRECT ANSWER-To purchase a
smaller amount of the same type of insurance as the original policy.
An applicant for insurance is requesting more information from her agent about a claim
that is currently being settled. Within what time period must the agent respond? -
CORRECT ANSWER-15 days
Which of the following is NOT a legitimate use of annuities by businesses? - CORRECT
ANSWER-Creating a tax shelter
In determining how material a piece of information is to each party of a contract, the
value is not determined by the event itself, but solely by which of the following? -
CORRECT ANSWER-Influence this information would have in forming an estimate of
the advantages or the disadvantages of the contract.
Which of the following statements concerning buy-sell agreements is true? - CORRECT
ANSWER-Buy-sell agreements are normally funded with a life insurance policy.
When an employer offers to give an employee a wage increase in the amount of the
premium on a new life insurance policy, this is called a(n) - CORRECT ANSWER-
Executive bonus.
When a life insurance policy stipulates that the beneficiary will receive payments in
specified installments or for a specified number of years, what provision prevents the
beneficiary from changing or borrowing from the planned installments? - CORRECT
ANSWER-Spendthrift provision
When an insured under a life insurance policy died, the designated beneficiary received
the face amount of the policy, as well as a refund of all of the premiums paid. Which
rider is attached to the policy? - CORRECT ANSWER-Return of premium
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age 100 is
called - CORRECT ANSWER-Single premium whole life.
To which of the following products does the Replacement Regulation apply? -
CORRECT ANSWER-Whole life insurance
An employee will be taxed on the cost of group life insurance paid by the employer if the
amount of coverage - CORRECT ANSWER-$50,000
