Primerica Life Insurance Test Exam with
Complete Solutions
An example of an alien insurer doing business in this state is one formed under the laws
of - correct answer-Mexico
Partners in a business want to make sure that if - correct answer-Buy-Sell Agreement
Ten years ago an insured purchased a life insurance policy designed to pay his family
$500 - correct answer-Family income policy
An agent delivers a policy to an applicant who pays the initial premium but refuses to
submit - correct answer-Consideration
Life settlement contracts are out into effect by which of the following - correct answer-An
absolute assignment
A married couple wants to include the entire family in their whole life policy under one
rider. Which of - correct answer-Family term
Among people in the same class and life expectancy, which of the following factors can
be used to influence premium rates? - correct answer-Occupation
Which of the following NOT be eligible for coverage under key person - correct answer-
The owner of the shop
An aleatory contract is based on what kind of exchange - correct answer-Unequal
exchanges of values
Under what circumstances will the contingent beneficiary receive the death benefit -
correct answer-If the primary beneficiary dies before the insured
Which of the following is NOT a component of an insurance policy premium - correct
answer-Number of beneficiaries
A warranty may relate to which of the following - correct answer-The past the present
and the future will
A college student will graduate next year. His studies have limited his ability to work, so
he has borrowed funds to pay for his education - correct answer-Modified whole life
,A person has a history of DUIs. To his insurer, this presents what type of hazard -
correct answer-Morale
Which of the following is not a type of hazard - correct answer-Exposure
An applicant for a disability insurance policy has a heart condition of which they are
unaware and therefore they answer no to the question pertaining to heart problems on
their application. Their answer is considered to be a - correct answer-Representation
Which of the following would be considered peril - correct answer-Fire
Which of the following is NOT a standard exclusion in life insurance policies - correct
answer-Disability
Joe, age 63, was disabled and can no longer work. He meets the Social Security
definition of total disability. How many work credits - correct answer-40
To purchase insurance, The policy owner must face the possibility of losing money or
something of value in the event of loss. What is this concept called? - correct answer-
Insurable interest
When the owner of a participating whole life policy uses the dividend to provide more
life insurance coverage, which of the following dividend options is being used? - correct
answer-Paid up additions
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - correct answer-Estate conservation
The entire contract includes all of the following EXCEPT - correct answer-A buyers
guide
Concerning the Family Protection Policy, all of the following statements are true
EXCEPT - correct answer-Children, upon reaching the age of majority, are permitted to
convert to an individual policy with proof of insurability
An insured bought an insurance policy that requires him to pay $150 in premiums on the
15th of each month. He then takes an extended vacation and forgets to pay the
premium - correct answer-Grace period
the purpose of the Fair Credit Reporting Act is to - correct answer-Protect consumers
against the circulation of inaccurate or obsolete personal or financial information
A life insurance policy qualifies 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 - correct answer-7 years
, Which of the following will be eligible for a tax sheltered annuity - correct answer-Public
school teachers
Which of the following best describes life annuity with period certain option - correct
answer-It guarantees benefit payments for life of the annuitant for a specified period for
the beneficiary
According to the Fair Credit Reporting Act, all of the following statements are true
EXCEPT - correct answer-If an applicant is declined for an insurance policy, he or she
has no right to know what was in the report.
All of the following are ways to handle risk EXCEPT - correct answer-Elimination
Which of the following is the cause of loss - correct answer-Peril
Because of an injury, an insured has been unable to work for 7 months. when his life
insurance premium came due, he was unable to pay, yet the policy remained in force.
the policy includes - correct answer-Waiver of premium rider.
Slippery floors, reckless driving, or providing false information are examples of.. -
correct answer-hazards
Which of the following statements is INCORRECT concerning Modified Endowment
Contracts (MECs) - correct answer-An MEC must always pass the 7-pay test
Your client wants to provide a retirement income for his elderly parents in case
something happens to him. He wants to make sure that both beneficiaries are
guaranteed an income for life. - correct answer-Joint and Survivor
Which of the following is the primary source of information that an insurer uses to
evaluate an insureds risk for life insurance - correct answer-Insurance application
A life insurance policy that provides coverage to every family member in a single policy,
with permanent insurance on the breadwinner and convertible term on other family
members is called - correct answer-A family policy
Individual members covered by group life insurance receive - correct answer-A
certificate of insurance
Considering the California Insurance Code's definition of an insurable event, which of
the following statements is true? - correct answer-The more predictable a loss the more
insurable it is
Which of the following will NOT be included in the buyers guide? - correct answer-
Specific information about the policy
Complete Solutions
An example of an alien insurer doing business in this state is one formed under the laws
of - correct answer-Mexico
Partners in a business want to make sure that if - correct answer-Buy-Sell Agreement
Ten years ago an insured purchased a life insurance policy designed to pay his family
$500 - correct answer-Family income policy
An agent delivers a policy to an applicant who pays the initial premium but refuses to
submit - correct answer-Consideration
Life settlement contracts are out into effect by which of the following - correct answer-An
absolute assignment
A married couple wants to include the entire family in their whole life policy under one
rider. Which of - correct answer-Family term
Among people in the same class and life expectancy, which of the following factors can
be used to influence premium rates? - correct answer-Occupation
Which of the following NOT be eligible for coverage under key person - correct answer-
The owner of the shop
An aleatory contract is based on what kind of exchange - correct answer-Unequal
exchanges of values
Under what circumstances will the contingent beneficiary receive the death benefit -
correct answer-If the primary beneficiary dies before the insured
Which of the following is NOT a component of an insurance policy premium - correct
answer-Number of beneficiaries
A warranty may relate to which of the following - correct answer-The past the present
and the future will
A college student will graduate next year. His studies have limited his ability to work, so
he has borrowed funds to pay for his education - correct answer-Modified whole life
,A person has a history of DUIs. To his insurer, this presents what type of hazard -
correct answer-Morale
Which of the following is not a type of hazard - correct answer-Exposure
An applicant for a disability insurance policy has a heart condition of which they are
unaware and therefore they answer no to the question pertaining to heart problems on
their application. Their answer is considered to be a - correct answer-Representation
Which of the following would be considered peril - correct answer-Fire
Which of the following is NOT a standard exclusion in life insurance policies - correct
answer-Disability
Joe, age 63, was disabled and can no longer work. He meets the Social Security
definition of total disability. How many work credits - correct answer-40
To purchase insurance, The policy owner must face the possibility of losing money or
something of value in the event of loss. What is this concept called? - correct answer-
Insurable interest
When the owner of a participating whole life policy uses the dividend to provide more
life insurance coverage, which of the following dividend options is being used? - correct
answer-Paid up additions
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - correct answer-Estate conservation
The entire contract includes all of the following EXCEPT - correct answer-A buyers
guide
Concerning the Family Protection Policy, all of the following statements are true
EXCEPT - correct answer-Children, upon reaching the age of majority, are permitted to
convert to an individual policy with proof of insurability
An insured bought an insurance policy that requires him to pay $150 in premiums on the
15th of each month. He then takes an extended vacation and forgets to pay the
premium - correct answer-Grace period
the purpose of the Fair Credit Reporting Act is to - correct answer-Protect consumers
against the circulation of inaccurate or obsolete personal or financial information
A life insurance policy qualifies 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 - correct answer-7 years
, Which of the following will be eligible for a tax sheltered annuity - correct answer-Public
school teachers
Which of the following best describes life annuity with period certain option - correct
answer-It guarantees benefit payments for life of the annuitant for a specified period for
the beneficiary
According to the Fair Credit Reporting Act, all of the following statements are true
EXCEPT - correct answer-If an applicant is declined for an insurance policy, he or she
has no right to know what was in the report.
All of the following are ways to handle risk EXCEPT - correct answer-Elimination
Which of the following is the cause of loss - correct answer-Peril
Because of an injury, an insured has been unable to work for 7 months. when his life
insurance premium came due, he was unable to pay, yet the policy remained in force.
the policy includes - correct answer-Waiver of premium rider.
Slippery floors, reckless driving, or providing false information are examples of.. -
correct answer-hazards
Which of the following statements is INCORRECT concerning Modified Endowment
Contracts (MECs) - correct answer-An MEC must always pass the 7-pay test
Your client wants to provide a retirement income for his elderly parents in case
something happens to him. He wants to make sure that both beneficiaries are
guaranteed an income for life. - correct answer-Joint and Survivor
Which of the following is the primary source of information that an insurer uses to
evaluate an insureds risk for life insurance - correct answer-Insurance application
A life insurance policy that provides coverage to every family member in a single policy,
with permanent insurance on the breadwinner and convertible term on other family
members is called - correct answer-A family policy
Individual members covered by group life insurance receive - correct answer-A
certificate of insurance
Considering the California Insurance Code's definition of an insurable event, which of
the following statements is true? - correct answer-The more predictable a loss the more
insurable it is
Which of the following will NOT be included in the buyers guide? - correct answer-
Specific information about the policy
