PRIMERICA COMPREHENSIVE EXAM
Questions and Answers
Guaranteed insurability option - correct answer-An individual is purchasing a permanent
life insurance with a face value of $25,000. While this is all the insurance that he can
afford at this time, he wants to be sure that additional coverage will be available in the
future. Which of the following options should be included in the policy?
Guaranteed insurability option - correct answer-An individual is purchasing a permanent
life insurance with a face value of $25,000. While this is all the insurance that he can
afford at this time, he wants to be sure that additional coverage will be available in the
future. Which of the following options should be included in the policy?
Both the principal and interest will be liquidated over a selected period of time. - correct
answer-Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time. - correct
answer-Which of the following best describes fixed-period settlement option?
When the application is signed and a check is given to the agent. - correct answer-
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent. - correct answer-
When is the earliest a policy may go into effect?
It would not occur in a deferred annuity. - correct answer-Which of the following is NOT
true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity. - correct answer-Which of the following is NOT
true regarding the accumulation period of an annuity?
Modified endowment contract. - correct answer-If a life insurance policy develops cash
value faster than a seven-pay whole life contract, it becomes a/an
Modified endowment contract. - correct answer-If a life insurance policy develops cash
value faster than a seven-pay whole life contract, it becomes a/an
The policy is owned by the company. - correct answer-All of the following statements
concerning the use of life insurance as an executive bonus are correct except
, The policy is owned by the company. - correct answer-All of the following statements
concerning the use of life insurance as an executive bonus are correct except
Buy-sell agreements are normally funded with a life insurance policy. - correct answer-
Which of the following statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy. - correct answer-
Which of the following statements concerning buy-sell agreements is true?
They are not included as income for the employee, but are taxable upon distribution. -
correct answer-How are contributions to a tax-sheltered annuity treated with regards to
taxation?
They are not included as income for the employee, but are taxable upon distribution. -
correct answer-How are contributions to a tax-sheltered annuity treated with regards to
taxation?
The policy will be interpreted as if the insurer waived its right to have an answer on the
application. - correct answer-If an insurer issued a policy based on the application that
had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the
application. - correct answer-If an insurer issued a policy based on the application that
had unanswered questions, which of the following will be TRUE?
Paid-up option. - correct answer-Which option is being utilized when the insurer
accumulates dividends at interest and then uses the accumulated dividends, plus
interest, and the policy cash value to pay the policy up early?
Paid-up option. - correct answer-Which option is being utilized when the insurer
accumulates dividends at interest and then uses the accumulated dividends, plus
interest, and the policy cash value to pay the policy up early?
Life income. - correct answer-Which of the following settlement options in life insurance
is known as straight life?
Life income. - correct answer-Which of the following settlement options in life insurance
is known as straight life?
The beneficiary. - correct answer-If the annuitant dies during the accumulation period,
who will receive the annuity benefits?
The beneficiary. - correct answer-If the annuitant dies during the accumulation period,
who will receive the annuity benefits?
Questions and Answers
Guaranteed insurability option - correct answer-An individual is purchasing a permanent
life insurance with a face value of $25,000. While this is all the insurance that he can
afford at this time, he wants to be sure that additional coverage will be available in the
future. Which of the following options should be included in the policy?
Guaranteed insurability option - correct answer-An individual is purchasing a permanent
life insurance with a face value of $25,000. While this is all the insurance that he can
afford at this time, he wants to be sure that additional coverage will be available in the
future. Which of the following options should be included in the policy?
Both the principal and interest will be liquidated over a selected period of time. - correct
answer-Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time. - correct
answer-Which of the following best describes fixed-period settlement option?
When the application is signed and a check is given to the agent. - correct answer-
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent. - correct answer-
When is the earliest a policy may go into effect?
It would not occur in a deferred annuity. - correct answer-Which of the following is NOT
true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity. - correct answer-Which of the following is NOT
true regarding the accumulation period of an annuity?
Modified endowment contract. - correct answer-If a life insurance policy develops cash
value faster than a seven-pay whole life contract, it becomes a/an
Modified endowment contract. - correct answer-If a life insurance policy develops cash
value faster than a seven-pay whole life contract, it becomes a/an
The policy is owned by the company. - correct answer-All of the following statements
concerning the use of life insurance as an executive bonus are correct except
, The policy is owned by the company. - correct answer-All of the following statements
concerning the use of life insurance as an executive bonus are correct except
Buy-sell agreements are normally funded with a life insurance policy. - correct answer-
Which of the following statements concerning buy-sell agreements is true?
Buy-sell agreements are normally funded with a life insurance policy. - correct answer-
Which of the following statements concerning buy-sell agreements is true?
They are not included as income for the employee, but are taxable upon distribution. -
correct answer-How are contributions to a tax-sheltered annuity treated with regards to
taxation?
They are not included as income for the employee, but are taxable upon distribution. -
correct answer-How are contributions to a tax-sheltered annuity treated with regards to
taxation?
The policy will be interpreted as if the insurer waived its right to have an answer on the
application. - correct answer-If an insurer issued a policy based on the application that
had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the
application. - correct answer-If an insurer issued a policy based on the application that
had unanswered questions, which of the following will be TRUE?
Paid-up option. - correct answer-Which option is being utilized when the insurer
accumulates dividends at interest and then uses the accumulated dividends, plus
interest, and the policy cash value to pay the policy up early?
Paid-up option. - correct answer-Which option is being utilized when the insurer
accumulates dividends at interest and then uses the accumulated dividends, plus
interest, and the policy cash value to pay the policy up early?
Life income. - correct answer-Which of the following settlement options in life insurance
is known as straight life?
Life income. - correct answer-Which of the following settlement options in life insurance
is known as straight life?
The beneficiary. - correct answer-If the annuitant dies during the accumulation period,
who will receive the annuity benefits?
The beneficiary. - correct answer-If the annuitant dies during the accumulation period,
who will receive the annuity benefits?
