Primerica Life Insurance Exam Thoroughly Analyzed
and Adequately Answered Questions
a 10% penalty must be paid on withdrawals made from a qualified plan before age
a. 40
b. 70 1/2
c. 59 1/2
d. 65 - CORRECT ANSWER ✔✔ -C. 59 1/2
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the
optional Payor Benefit rider. If the father becomes disabled, what will happen to the life
insurance premiums?
a. the insured will have to pay premiums for 6 months. If at the end of this period the father is
still disabled, the insured will be refunded the premiums
b. the insureds premiums will be waived until she is 21
c. the premiums will become tax deductible until the insureds 18th birthday
d. since it is the policyowner, and not the insured, who has become disabled, the life insurance
policy will not be affected - CORRECT ANSWER ✔✔ -B. the insureds premiums will be
waived until she is 21
,a long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices
that the face value of her life insurance policy has be raised 7% as a result. Which policy rider
caused this change?
a. inflation rider
b. cost of living rider
c. value of adjustment rider
d. return of premium rider - CORRECT ANSWER ✔✔ -B. cost of living rider
the cost of living rider annually adjusts the policy's face vale in accordance with the national rate
of inflation or deflation. This rider adjusts the face amount of the policy to correspond with the
rate of inflation, in order to keep the initial value of the policy constant over time
a Louisiana insurance company ran and advertisement in June 2008. When could the company
discard the file on this document?
a. June 2013
b. June 2012
c. June 2011
d. June 2009 - CORRECT ANSWER ✔✔ -B. June 2012
,in Louisiana, insurance companies are required to keep files of all advertisements used for 4
years, or until he next examination by the Department
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide
additional protection until his children finished college. He discovered that his policy
a. required a premium increase each renewal
b. built cash value
c. required proof of insurability ever year
d. decreased death benefit each renewal - CORRECT ANSWER ✔✔ -A. required a premium
increase each renewal
annually renewable term policies premiums are adjusted each year to the insured's attained age,
however, the policy may be guaranteed renewable. Death benefits remain level, and switch any
term policy, there are no cash values
a participating insurance policy may do which of the following?
a. require 80% participation
b. pay dividends to the policyowner
, c. provide group coverage
d. pay dividends to the stockholder - CORRECT ANSWER ✔✔ -B. pay dividends to the
policyowner
a policy that insures 2 or more lives and pays on the death of the last insured is
a. joint life
b. group life
c. survivorship life
d. family protection ife - CORRECT ANSWER ✔✔ -C. survivorship life
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
d. explain the rating procedures if the policy is rated differently than applied for - CORRECT
ANSWER ✔✔ -A. disclose commissions earned fro the sale of the policy
and Adequately Answered Questions
a 10% penalty must be paid on withdrawals made from a qualified plan before age
a. 40
b. 70 1/2
c. 59 1/2
d. 65 - CORRECT ANSWER ✔✔ -C. 59 1/2
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the
optional Payor Benefit rider. If the father becomes disabled, what will happen to the life
insurance premiums?
a. the insured will have to pay premiums for 6 months. If at the end of this period the father is
still disabled, the insured will be refunded the premiums
b. the insureds premiums will be waived until she is 21
c. the premiums will become tax deductible until the insureds 18th birthday
d. since it is the policyowner, and not the insured, who has become disabled, the life insurance
policy will not be affected - CORRECT ANSWER ✔✔ -B. the insureds premiums will be
waived until she is 21
,a long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices
that the face value of her life insurance policy has be raised 7% as a result. Which policy rider
caused this change?
a. inflation rider
b. cost of living rider
c. value of adjustment rider
d. return of premium rider - CORRECT ANSWER ✔✔ -B. cost of living rider
the cost of living rider annually adjusts the policy's face vale in accordance with the national rate
of inflation or deflation. This rider adjusts the face amount of the policy to correspond with the
rate of inflation, in order to keep the initial value of the policy constant over time
a Louisiana insurance company ran and advertisement in June 2008. When could the company
discard the file on this document?
a. June 2013
b. June 2012
c. June 2011
d. June 2009 - CORRECT ANSWER ✔✔ -B. June 2012
,in Louisiana, insurance companies are required to keep files of all advertisements used for 4
years, or until he next examination by the Department
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide
additional protection until his children finished college. He discovered that his policy
a. required a premium increase each renewal
b. built cash value
c. required proof of insurability ever year
d. decreased death benefit each renewal - CORRECT ANSWER ✔✔ -A. required a premium
increase each renewal
annually renewable term policies premiums are adjusted each year to the insured's attained age,
however, the policy may be guaranteed renewable. Death benefits remain level, and switch any
term policy, there are no cash values
a participating insurance policy may do which of the following?
a. require 80% participation
b. pay dividends to the policyowner
, c. provide group coverage
d. pay dividends to the stockholder - CORRECT ANSWER ✔✔ -B. pay dividends to the
policyowner
a policy that insures 2 or more lives and pays on the death of the last insured is
a. joint life
b. group life
c. survivorship life
d. family protection ife - CORRECT ANSWER ✔✔ -C. survivorship life
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
d. explain the rating procedures if the policy is rated differently than applied for - CORRECT
ANSWER ✔✔ -A. disclose commissions earned fro the sale of the policy
