PRIMERICA PRACTICE TEST
The receipt given to a life insurance applicant when the application is completed and the
initial premium is received is called a(n) - answer- conditional receipt
Which settlement option guarantees an income for 2 or more recipients for as long as they live - answer- joint and survivor
Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests? - answer- buy-sell agreement
Which of the following would be considered a flexible premium policy? - answer- universal life
If an annuitant dies during the accumulation period, what will the beneficiary receive? - answer- either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered - answer- nonadmitted
To prevent people from profiting from a loss, insurers must be certain - answer- insurable interest exists
If a misstatement of age is discovered during the processing of a life insurance claim, what will the insurer do? - answer- adjusts the death benefit based on the premiums that were paid
Which of the following allows an insurance company to deny coverage if the insured's death occurs in a war? - answer- policy exclusions
Each of the following is a typical characteristic of group life insurance EXCEPT - answer- evidence of insurability is usually required
A life settlement opinion that pays out the death benefit incrementally, in a specified amount until all of the proceeds are exhausted, is called - answer- fixed-amount installments
A life insurance death benefit paid in a lump sum to a beneficiary is - answer- not subject to any taxes
Which of the follow is NOT a nonforfeiture option in whole life policies? - answer- accumulation at interest
Which of the following indicates the person upon whose life the annuity income amount is determined? - answer- annuitant
The receipt given to a life insurance applicant when the application is completed and the
initial premium is received is called a(n) - answer- conditional receipt
Which settlement option guarantees an income for 2 or more recipients for as long as they live - answer- joint and survivor
Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests? - answer- buy-sell agreement
Which of the following would be considered a flexible premium policy? - answer- universal life
If an annuitant dies during the accumulation period, what will the beneficiary receive? - answer- either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered - answer- nonadmitted
To prevent people from profiting from a loss, insurers must be certain - answer- insurable interest exists
If a misstatement of age is discovered during the processing of a life insurance claim, what will the insurer do? - answer- adjusts the death benefit based on the premiums that were paid
Which of the following allows an insurance company to deny coverage if the insured's death occurs in a war? - answer- policy exclusions
Each of the following is a typical characteristic of group life insurance EXCEPT - answer- evidence of insurability is usually required
A life settlement opinion that pays out the death benefit incrementally, in a specified amount until all of the proceeds are exhausted, is called - answer- fixed-amount installments
A life insurance death benefit paid in a lump sum to a beneficiary is - answer- not subject to any taxes
Which of the follow is NOT a nonforfeiture option in whole life policies? - answer- accumulation at interest
Which of the following indicates the person upon whose life the annuity income amount is determined? - answer- annuitant
