LIFE INSURANCE LICENSING TEST,
PRIMERICA EXAM QUESTIONS WITH
CORRECT ANSWERS
Which provision of a life insurance policy states that the application is part of the
contract? - ANSWER-Entire contract clause
If a cash settlement is chosen, for a death benefit payment, a check for the amount of
the benefit must be sent to the beneficiary no later than - ANSWER-2 months
Whole life insurance differs from term insurance with regard to - ANSWER-Cash value
accumulation
The "pay-in" time for deferred annuities is known as the - ANSWER-Accumulation
period
Today each of the individuals listed below purchases a single premium, immediate
annuity and chooses the straight life pay-out option. Assuming the same interest rate,
who would receive the largest monthly check? - ANSWER-A 60-year old man
Persons accused of Insurance Code violations are entitled to a hearing within how
many days? - ANSWER-30 days
An equity indexed annuity - ANSWER-Offers a potentially higher return than fixed
annuities
Which rider may increase the value of the policy due to an increase in the Consumer
Price Index (CPI)? - ANSWER-Cost of living
An annuity that is purchased with a lump-sum premium and benefits that begin after 12
months would be a - ANSWER-Single premium deferred annuity
Which action by a producer may NOT be grounds for a non-renewal or revocation of
license? - ANSWER-failing to meet sales quotas
Which of the following does NOT allow contributions after age 70 1/2? - ANSWER-
Traditional IRA
All of the following are unfair claims practices EXCEPT - ANSWER-Denying a claim not
covered under the policy
The main source of underwriting information for an insurer is the - ANSWER-Application
, In determining life insurance risks, an underwriter may classify risks as any of the
following EXCEPT - ANSWER-Traditional
Which plan would be appropriate for the employees of a non-profit organization? -
ANSWER-TSA
Which of the following is NOT a factor in determining policy premiums? - ANSWER-
Taxes
It is illegal to discriminate against an applicant for insurance for all the following reasons
EXCEPT - ANSWER-Poor Risk
How long does an employee have to convert their group life insurance coverage to an
individual policy upon leaving the group? - ANSWER-31 days
Social Security benefits do NOT include - ANSWER-Unemployment
A group life insurance program in which the employer pays all of the premium would be
considered - ANSWER-Noncontributory
A payor benefit rider is used to keep what type of policy in force? - ANSWER-Juvenile
insurance
Which illness does NOT qualify for accelerated benefits? - ANSWER-Short-term
disability
The maximum allowable interest rate on policy loans is - ANSWER-8%
All of the following would result from viatical settlement EXCEPT the - ANSWER-
Policy's value will be decreased
Which of the following would NOT constitute replacement if new life insurance is
purchased? - ANSWER-Converting term insurance within the same company
All of the following are required elements of an insurance contract EXCEPT - ANSWER-
Waivers
A renewable term insurance policy - ANSWER-Renews at the attained age of the
insured
The annuity period is best defined as the time during which a person - ANSWER-
Receives payments
Any areas of ambiguity in an insurance contract are decided in favor of the insured
because the contract is - ANSWER-A contract of adhesion
PRIMERICA EXAM QUESTIONS WITH
CORRECT ANSWERS
Which provision of a life insurance policy states that the application is part of the
contract? - ANSWER-Entire contract clause
If a cash settlement is chosen, for a death benefit payment, a check for the amount of
the benefit must be sent to the beneficiary no later than - ANSWER-2 months
Whole life insurance differs from term insurance with regard to - ANSWER-Cash value
accumulation
The "pay-in" time for deferred annuities is known as the - ANSWER-Accumulation
period
Today each of the individuals listed below purchases a single premium, immediate
annuity and chooses the straight life pay-out option. Assuming the same interest rate,
who would receive the largest monthly check? - ANSWER-A 60-year old man
Persons accused of Insurance Code violations are entitled to a hearing within how
many days? - ANSWER-30 days
An equity indexed annuity - ANSWER-Offers a potentially higher return than fixed
annuities
Which rider may increase the value of the policy due to an increase in the Consumer
Price Index (CPI)? - ANSWER-Cost of living
An annuity that is purchased with a lump-sum premium and benefits that begin after 12
months would be a - ANSWER-Single premium deferred annuity
Which action by a producer may NOT be grounds for a non-renewal or revocation of
license? - ANSWER-failing to meet sales quotas
Which of the following does NOT allow contributions after age 70 1/2? - ANSWER-
Traditional IRA
All of the following are unfair claims practices EXCEPT - ANSWER-Denying a claim not
covered under the policy
The main source of underwriting information for an insurer is the - ANSWER-Application
, In determining life insurance risks, an underwriter may classify risks as any of the
following EXCEPT - ANSWER-Traditional
Which plan would be appropriate for the employees of a non-profit organization? -
ANSWER-TSA
Which of the following is NOT a factor in determining policy premiums? - ANSWER-
Taxes
It is illegal to discriminate against an applicant for insurance for all the following reasons
EXCEPT - ANSWER-Poor Risk
How long does an employee have to convert their group life insurance coverage to an
individual policy upon leaving the group? - ANSWER-31 days
Social Security benefits do NOT include - ANSWER-Unemployment
A group life insurance program in which the employer pays all of the premium would be
considered - ANSWER-Noncontributory
A payor benefit rider is used to keep what type of policy in force? - ANSWER-Juvenile
insurance
Which illness does NOT qualify for accelerated benefits? - ANSWER-Short-term
disability
The maximum allowable interest rate on policy loans is - ANSWER-8%
All of the following would result from viatical settlement EXCEPT the - ANSWER-
Policy's value will be decreased
Which of the following would NOT constitute replacement if new life insurance is
purchased? - ANSWER-Converting term insurance within the same company
All of the following are required elements of an insurance contract EXCEPT - ANSWER-
Waivers
A renewable term insurance policy - ANSWER-Renews at the attained age of the
insured
The annuity period is best defined as the time during which a person - ANSWER-
Receives payments
Any areas of ambiguity in an insurance contract are decided in favor of the insured
because the contract is - ANSWER-A contract of adhesion
