Primerica Life Insurance State Exam RI
100% Correct Answers
Which risk classification is representative of the majority of people in a certain age
group and with similar lifestyles?
1)Declined
2)Preferred
3)Standard
4)Substandard - correct answer-Standard
A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount
of premium paid exceeds the amount that would have provided paid-up insurance in
how many years?
1)3 yrs
2)5 yrs
3)7 yrs
4)The life of the policy - correct answer-7 Years
An annuity would normally be purchased by an individual who wants to
1)Provide a death benefit to the insuring party
2)Earn a higher rate of interest
3)Create an estate
4)Provide income for retirement - correct answer-Provide income for retirement
If the policy summary for a life insurance policy is not given when the application is
taken, when must the policy summary be given to the policyowner?
1)When policy is delivered
2)Within 15 days of the application date
3)Within 30 days of policy issue
4)When the policy is issued - correct answer-When the policy is delivered
When term insurance is added to the main policy to enhance the policy to provide
added benefit or coverage, it is called a
1)Term rider
2)Nonforfeiture option
3)Future income rider
,4)Guaranteed insurability rider - correct answer-Term rider
Which method of dealing with risk is applied when insurance is purchased
1) Transfer
2)Sharing
3)Avoidance
4)Reduction - correct answer-Transfer
S set up an individual retirement account that her employer is now contributing to. Her
employer's contributions are not included in her gross income. What kind of retirement
plan does S have?
1)SIMPLE
2)Simplified Employee Pension (SEP)
3)401k
4)HR-10 (Keogh) - correct answer-Simplified Employee Pension (SEP)
As it relates to life settlements, the term "owner" means
1)Life settlement broker
2)Life settlement provider
3)The owner of the original life policy
4)The owner of the insurance company - correct answer-The owner of the original life
policy
An annuitant pays the annuity premium on the 14th of each month. Which of the
following best describes this arrangement?
1)Flexible
2)Lump sum
3)Single
4)Level - correct answer-Level
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy
1) A covered Peril Rider
2)An accidental death rider
3)A double indemnity rider
4) A guaranteed insurability rider - correct answer-An accidental death rider
An adjustable life policy can assume the form of
1)Only permanent insurance
, 2)Either term insurance or permanent insurance
3)Neither term insurance nor permanent insurance
4)Only term insurance - correct answer-Either term insurance or permanent insurance
Variable life insurance is regulated by all of the following entities EXCEPT
1)The Financial Industry Regulatory Authority (FINRA)
2)The U.S Department of Treasury
3)The Securities and Exchange Commission (SEC)
4)The Department of Insurance and/or Financial Services - correct answer-The U.S
Department of Treasury
How do premiums in variable universal life policies vary from those in variable whole life
policies?
1)Premiums automatically increase over the life of the policy
2)Premiums are flexible
3)Premiums are level
4)Premiums automatically decrease over the life of the policy - correct answer-
Premiums are flexible
If an applicant's health is poorer than that of an average applicant, the policy may be
issued
1)Standard
2)Ordinary
3)Preferred
4)Substandard - correct answer-Substandard
How long is the grace period for an individual life insurance policy?
1) 2 weeks
2) 7 to 10 business days
3) 3 months
4) 1 months - correct answer-1 month
If an insured dies, and it is discovered that the insured misstated his/her age or gender,
the life insurance company will
1)Deny all claims because of the misrepresentation
2)Adjust the back premiums for the proper age or gender
3)Adjust the death benefit to what the premium would have purchased at the actual age
or gender
4)Pay the face amount specified at the time of policy issue - correct answer-Adjust the
death benefit to what the premium would have purchased at the actual age or gender
100% Correct Answers
Which risk classification is representative of the majority of people in a certain age
group and with similar lifestyles?
1)Declined
2)Preferred
3)Standard
4)Substandard - correct answer-Standard
A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount
of premium paid exceeds the amount that would have provided paid-up insurance in
how many years?
1)3 yrs
2)5 yrs
3)7 yrs
4)The life of the policy - correct answer-7 Years
An annuity would normally be purchased by an individual who wants to
1)Provide a death benefit to the insuring party
2)Earn a higher rate of interest
3)Create an estate
4)Provide income for retirement - correct answer-Provide income for retirement
If the policy summary for a life insurance policy is not given when the application is
taken, when must the policy summary be given to the policyowner?
1)When policy is delivered
2)Within 15 days of the application date
3)Within 30 days of policy issue
4)When the policy is issued - correct answer-When the policy is delivered
When term insurance is added to the main policy to enhance the policy to provide
added benefit or coverage, it is called a
1)Term rider
2)Nonforfeiture option
3)Future income rider
,4)Guaranteed insurability rider - correct answer-Term rider
Which method of dealing with risk is applied when insurance is purchased
1) Transfer
2)Sharing
3)Avoidance
4)Reduction - correct answer-Transfer
S set up an individual retirement account that her employer is now contributing to. Her
employer's contributions are not included in her gross income. What kind of retirement
plan does S have?
1)SIMPLE
2)Simplified Employee Pension (SEP)
3)401k
4)HR-10 (Keogh) - correct answer-Simplified Employee Pension (SEP)
As it relates to life settlements, the term "owner" means
1)Life settlement broker
2)Life settlement provider
3)The owner of the original life policy
4)The owner of the insurance company - correct answer-The owner of the original life
policy
An annuitant pays the annuity premium on the 14th of each month. Which of the
following best describes this arrangement?
1)Flexible
2)Lump sum
3)Single
4)Level - correct answer-Level
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy
1) A covered Peril Rider
2)An accidental death rider
3)A double indemnity rider
4) A guaranteed insurability rider - correct answer-An accidental death rider
An adjustable life policy can assume the form of
1)Only permanent insurance
, 2)Either term insurance or permanent insurance
3)Neither term insurance nor permanent insurance
4)Only term insurance - correct answer-Either term insurance or permanent insurance
Variable life insurance is regulated by all of the following entities EXCEPT
1)The Financial Industry Regulatory Authority (FINRA)
2)The U.S Department of Treasury
3)The Securities and Exchange Commission (SEC)
4)The Department of Insurance and/or Financial Services - correct answer-The U.S
Department of Treasury
How do premiums in variable universal life policies vary from those in variable whole life
policies?
1)Premiums automatically increase over the life of the policy
2)Premiums are flexible
3)Premiums are level
4)Premiums automatically decrease over the life of the policy - correct answer-
Premiums are flexible
If an applicant's health is poorer than that of an average applicant, the policy may be
issued
1)Standard
2)Ordinary
3)Preferred
4)Substandard - correct answer-Substandard
How long is the grace period for an individual life insurance policy?
1) 2 weeks
2) 7 to 10 business days
3) 3 months
4) 1 months - correct answer-1 month
If an insured dies, and it is discovered that the insured misstated his/her age or gender,
the life insurance company will
1)Deny all claims because of the misrepresentation
2)Adjust the back premiums for the proper age or gender
3)Adjust the death benefit to what the premium would have purchased at the actual age
or gender
4)Pay the face amount specified at the time of policy issue - correct answer-Adjust the
death benefit to what the premium would have purchased at the actual age or gender
