PRIMERICA PRACTICE EXAM TEST A
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
1. The premium modes can be best described as the:
A. Amount of premium payment.
B. Method of premium payment.
C. Frequency of premium payment.
D. Calculation of premium payment. - ANSWER-Frequency of premium payment
2. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - ANSWER-Concealment
3. A tax-sheltered annuity (TSA) is a qualified plan available for:
A. Employees of corporations.
B. Self-employed persons.
C. Nonprofit organizations.
D. Group life insurance. - ANSWER-nonprofit organizations
4. The intent of replacement regulations is to protect the:
A. Producer.
B. Agency.
C. Policyowner.
D. Insurance company. - ANSWER-Policy owner
5. Which provision allows a lapsed policy to be put back in force?
A. Replacement
B. Incontestability
C. Grace period
D. Reinstatement - ANSWER-Reinstatement
6. According to the California Department of Insurance, an insurer whose articles of
incorporation are registered in Oslo, Norway is considered a/an:
A. Domestic insurer.
B. Foreign insurer.
C. Alien insurer.
D. Admitted insurer. - ANSWER-Alien insurer
7. Mortality is defined as the A. Probability of a disability. B. Rate of death. C. Rate of
annuitization. D. Probability of an illness. - ANSWER-Rate of death
, 8. Which of the following is NOT a characteristic of group life insurance? A. A group
may exist for the purpose of purchasing insurance. B. The insurance is written as a
master policy. C. Members receive a certificate of insurance. D. Conversion rights
without evidence of insurability must be offered. - ANSWER-A group may exist for the
purpose of purchasing insurance
9. When a producer collects the initial premium and issues a conditional receipt, the
receipt A. May allow life insurance companies to start coverage before policy delivery.
B. Guarantees that a policy will be issued. C. Allows the application to be completed
during the initial interview. D. Waives the contestable period if all questions on the
application are answered. - ANSWER-may allow life insurance companies to start
coverage before policy delivery
10. The law of large numbers allows an insurance company to predict the expected
losses among A. The insureds of a particular insurer. B. Members of a group of
individuals with similar risks. C. Individual with similar health conditions. D. Members of
a fraternal benefit society. - ANSWER-members of a group of individuals with similar
risks
11. An annuity that is purchased with a lump sum premium and whose benefits begin
after 12 months is called a:
A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Level premium variable annuity.
D. Flexible premium fixed annuity. - ANSWER-Single premium deferred annuity
12. A technique used to determine the amount of life insurance needed by focusing on
the projected earning potential of an insured is called the:
A. Needs approach.
B. Future income option.
C. Human life value approach.
D. Life income approach. - ANSWER-Human life value approach
13. When replacing a policy the producer must present the applicant with a Notice
Regarding Replacement of Life Insurance:
A. At the policy delivery date.
B. 7 days after the initial meeting.
C. On the date the underwriter approves the policy.
D. At the time of taking the application. - ANSWER-At the time of taking the application
14. The possibility of a financial loss incurred by a life insurance company for the
premature death of an insured is known as a:
A. Peril.
B. Risk.
C. Hazard.
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
1. The premium modes can be best described as the:
A. Amount of premium payment.
B. Method of premium payment.
C. Frequency of premium payment.
D. Calculation of premium payment. - ANSWER-Frequency of premium payment
2. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - ANSWER-Concealment
3. A tax-sheltered annuity (TSA) is a qualified plan available for:
A. Employees of corporations.
B. Self-employed persons.
C. Nonprofit organizations.
D. Group life insurance. - ANSWER-nonprofit organizations
4. The intent of replacement regulations is to protect the:
A. Producer.
B. Agency.
C. Policyowner.
D. Insurance company. - ANSWER-Policy owner
5. Which provision allows a lapsed policy to be put back in force?
A. Replacement
B. Incontestability
C. Grace period
D. Reinstatement - ANSWER-Reinstatement
6. According to the California Department of Insurance, an insurer whose articles of
incorporation are registered in Oslo, Norway is considered a/an:
A. Domestic insurer.
B. Foreign insurer.
C. Alien insurer.
D. Admitted insurer. - ANSWER-Alien insurer
7. Mortality is defined as the A. Probability of a disability. B. Rate of death. C. Rate of
annuitization. D. Probability of an illness. - ANSWER-Rate of death
, 8. Which of the following is NOT a characteristic of group life insurance? A. A group
may exist for the purpose of purchasing insurance. B. The insurance is written as a
master policy. C. Members receive a certificate of insurance. D. Conversion rights
without evidence of insurability must be offered. - ANSWER-A group may exist for the
purpose of purchasing insurance
9. When a producer collects the initial premium and issues a conditional receipt, the
receipt A. May allow life insurance companies to start coverage before policy delivery.
B. Guarantees that a policy will be issued. C. Allows the application to be completed
during the initial interview. D. Waives the contestable period if all questions on the
application are answered. - ANSWER-may allow life insurance companies to start
coverage before policy delivery
10. The law of large numbers allows an insurance company to predict the expected
losses among A. The insureds of a particular insurer. B. Members of a group of
individuals with similar risks. C. Individual with similar health conditions. D. Members of
a fraternal benefit society. - ANSWER-members of a group of individuals with similar
risks
11. An annuity that is purchased with a lump sum premium and whose benefits begin
after 12 months is called a:
A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Level premium variable annuity.
D. Flexible premium fixed annuity. - ANSWER-Single premium deferred annuity
12. A technique used to determine the amount of life insurance needed by focusing on
the projected earning potential of an insured is called the:
A. Needs approach.
B. Future income option.
C. Human life value approach.
D. Life income approach. - ANSWER-Human life value approach
13. When replacing a policy the producer must present the applicant with a Notice
Regarding Replacement of Life Insurance:
A. At the policy delivery date.
B. 7 days after the initial meeting.
C. On the date the underwriter approves the policy.
D. At the time of taking the application. - ANSWER-At the time of taking the application
14. The possibility of a financial loss incurred by a life insurance company for the
premature death of an insured is known as a:
A. Peril.
B. Risk.
C. Hazard.
