Primerica Exam Law Questions and
Answers
What type if policy is considered temporary protection? - correct answer-Term Life
The type of policy that can be changed from one that does not accumulate cash value
to one that does it a.... - correct answer-Convertible term policy
Which type of insurance would be most appropriate to use to pay off a mortgage in case
the insured dies prematurely? - correct answer-Decreasing Term
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called... - correct answer-Ordinary Whole Life
An insured agreed to pay premiums for 20 years, after which she will still be covered at
age 100. She purchased a.... - correct answer-Limited pay policy
Universal life is a combination of.... - correct answer-Annually renewable term and a
cash account
In the Variable Life Policy, where are premiums deposition after expenses are
deducted? - correct answer-The separate account
Selling which of the following policies would require a license issued by FINRA? -
correct answer-Variable Universal Life
The policy that covers 2 or more lives and pays on the death of the last insured is.... -
correct answer-Survivorship Life
A contract that can provide income for life and protect against outliving your money is
a/an... - correct answer-Annuity
The period of time during which money is paid into an annuity and interest is earned is
called the... - correct answer-Accumulation Period
An immediate Annuity has no accumulation period which means it can only be
purchased... - correct answer-with a single premium
An individual wants to convert a lump sum of money to purchase an annuity that will
provide an immediate, guaranteed income for life. Which of the following types of
annuity should this individual purchase? - correct answer-Single Premium Annuity
, An annuity whose return is based on an index like the S&P 500 is called a/an... - correct
answer-Indexed Annuity
Which of the following life insurance policies will provide coverage beyond the end of
the premium payment period? - correct answer-20-pay whole life
If an insured with a whole life policy and a waiver of premium rider suffers a disability
that causes her insurance company to waive her premium payments, which of the
following statements would be correct? - correct answer-There will be no change in her
policy's rates, benefits or options other than she no longer has to pay the premiums on
the policy
Which rider allows the insured to purchase additional coverage amounts at specified
future dates or specific events without evidence of insurability? - correct answer-
Guaranteed Insurability
A payor benefit rider is used to keep what type of policy in force? - correct answer-A
juvenile policy
Which of the following is true about the Spouse Term Rider? - correct answer-The
coverage is usually level term insurance
All of the following are true about Long Term Care riders EXCEPT... - correct answer-
LTC will only pay benefits if the insured is under age 65
Which provision of a life insurance policy states that a copy of the application along with
any riders and amendments is part of the contract? - correct answer-Entire contract
clause
Who is first in line to receive the death benefit from a life insurance policy? - correct
answer-The primary beneficiary
Which type of beneficiary designation cannot be changed without the consent of the
beneficiary? - correct answer-Irrevocable
Which of the following will receive the death benefit if the insured and the sole
beneficiary both die together? - correct answer-The insured's estate
Which of the following is NOT a requirement for the reinstatement of a life insurance
policy? - correct answer-Make a collateral assignment of the cash value in the policy to
the insurance company
Which of the following is a Nonforfeiture Option that provides continuing cash value
buildup? - correct answer-Reduced Paid-Up
Answers
What type if policy is considered temporary protection? - correct answer-Term Life
The type of policy that can be changed from one that does not accumulate cash value
to one that does it a.... - correct answer-Convertible term policy
Which type of insurance would be most appropriate to use to pay off a mortgage in case
the insured dies prematurely? - correct answer-Decreasing Term
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called... - correct answer-Ordinary Whole Life
An insured agreed to pay premiums for 20 years, after which she will still be covered at
age 100. She purchased a.... - correct answer-Limited pay policy
Universal life is a combination of.... - correct answer-Annually renewable term and a
cash account
In the Variable Life Policy, where are premiums deposition after expenses are
deducted? - correct answer-The separate account
Selling which of the following policies would require a license issued by FINRA? -
correct answer-Variable Universal Life
The policy that covers 2 or more lives and pays on the death of the last insured is.... -
correct answer-Survivorship Life
A contract that can provide income for life and protect against outliving your money is
a/an... - correct answer-Annuity
The period of time during which money is paid into an annuity and interest is earned is
called the... - correct answer-Accumulation Period
An immediate Annuity has no accumulation period which means it can only be
purchased... - correct answer-with a single premium
An individual wants to convert a lump sum of money to purchase an annuity that will
provide an immediate, guaranteed income for life. Which of the following types of
annuity should this individual purchase? - correct answer-Single Premium Annuity
, An annuity whose return is based on an index like the S&P 500 is called a/an... - correct
answer-Indexed Annuity
Which of the following life insurance policies will provide coverage beyond the end of
the premium payment period? - correct answer-20-pay whole life
If an insured with a whole life policy and a waiver of premium rider suffers a disability
that causes her insurance company to waive her premium payments, which of the
following statements would be correct? - correct answer-There will be no change in her
policy's rates, benefits or options other than she no longer has to pay the premiums on
the policy
Which rider allows the insured to purchase additional coverage amounts at specified
future dates or specific events without evidence of insurability? - correct answer-
Guaranteed Insurability
A payor benefit rider is used to keep what type of policy in force? - correct answer-A
juvenile policy
Which of the following is true about the Spouse Term Rider? - correct answer-The
coverage is usually level term insurance
All of the following are true about Long Term Care riders EXCEPT... - correct answer-
LTC will only pay benefits if the insured is under age 65
Which provision of a life insurance policy states that a copy of the application along with
any riders and amendments is part of the contract? - correct answer-Entire contract
clause
Who is first in line to receive the death benefit from a life insurance policy? - correct
answer-The primary beneficiary
Which type of beneficiary designation cannot be changed without the consent of the
beneficiary? - correct answer-Irrevocable
Which of the following will receive the death benefit if the insured and the sole
beneficiary both die together? - correct answer-The insured's estate
Which of the following is NOT a requirement for the reinstatement of a life insurance
policy? - correct answer-Make a collateral assignment of the cash value in the policy to
the insurance company
Which of the following is a Nonforfeiture Option that provides continuing cash value
buildup? - correct answer-Reduced Paid-Up
