Primerica Chapter 1 questions and
Answers Exam
What do individuals use to transfer their risk of loss to a larger group? - correct answer-
Insurance
Best Describe the MIB - correct answer-Nonprofit organization that maintains
underwriting information on applicants for life and health insurance
An Insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. What insurance principles has the insurer violated? - correct answer-
Consideration
The term "illustration" in a life insurance policy refers to... - correct answer-A
presentation of guaranteed elements of a policy
Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a... - correct answer-Premium receipt
What document must be provided to the policy owner or applicant during policy
replacement? - correct answer-Notice Regarding Replacement
In insurance, an offer is usually made when... - correct answer-the application is
submitted
When must insurable interest exist in a life insurance policy? - correct answer-At the
time of application
What is the purpose of a conditional receipt? - correct answer-It is intended to provide
coverage on a date earlier than the date of the issuance of the policy
When would a misrepresentation on the insurance application be considered fraud? -
correct answer-If it is intentional and material
Representations are written or oral statements made by the applicant that are... -
correct answer-Considered true to the best of the applicants knowledge
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will... - correct answer-Pay the policy proceeds only if it would have issued
the policy
Answers Exam
What do individuals use to transfer their risk of loss to a larger group? - correct answer-
Insurance
Best Describe the MIB - correct answer-Nonprofit organization that maintains
underwriting information on applicants for life and health insurance
An Insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. What insurance principles has the insurer violated? - correct answer-
Consideration
The term "illustration" in a life insurance policy refers to... - correct answer-A
presentation of guaranteed elements of a policy
Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a... - correct answer-Premium receipt
What document must be provided to the policy owner or applicant during policy
replacement? - correct answer-Notice Regarding Replacement
In insurance, an offer is usually made when... - correct answer-the application is
submitted
When must insurable interest exist in a life insurance policy? - correct answer-At the
time of application
What is the purpose of a conditional receipt? - correct answer-It is intended to provide
coverage on a date earlier than the date of the issuance of the policy
When would a misrepresentation on the insurance application be considered fraud? -
correct answer-If it is intentional and material
Representations are written or oral statements made by the applicant that are... -
correct answer-Considered true to the best of the applicants knowledge
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will... - correct answer-Pay the policy proceeds only if it would have issued
the policy
