Primerica Life Insurance Test questions
with 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
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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
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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
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with 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
|!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!| |!|
