PRIMERICA LIFE INSURANCE EXAM
QUESTIONS WITH COMPLETE
ANSWERS
Requirements for insurance producers - ANSWER-must be licensed to sell insurance in
their state and must be appointed by an authorized insurance company
Step 1 on issuing life insurance - ANSWER-Solicit client (offer to sell them insurance)
Step 2 on issuing life insurance - ANSWER-Give client a sells presentation on financial
product that fits their need
Step 3 on issuing life insurance - ANSWER-field underwriting
Job of field underwriter - ANSWER-fill out application containing:
- general information
- medical information
- agents report
What is an agent report? - ANSWER-Your observation of the client and your knowledge
of them
Step 4 on issuing life insurance - ANSWER-After finishing field underwriting application
you must collect the premium and forward both to the company underwriter
Job of company under writer - ANSWER-Determining if someone is eligible for
insurance and classifying them as:
preferred
standard
substandard
declined
Preferred - ANSWER-reduced risk of loss
covered at reduced rate
Standard - ANSWER-Average exposures
covered at standard rate
Substandard - ANSWER-Increased risk of loss
covered at increased rate
Declined - ANSWER-too high a risk
not covered
, Final step in issuing life insurance - ANSWER-Policy is issued and you deliver it
Two types of life insurance policies - ANSWER-Term and whole life
Term insurance - ANSWER-Temporary insurance; specific time period
has no cash value
can be renewed or converted
Another name for term insurance - ANSWER-Pure protection
Why is term insurance also known as pure protection? - ANSWER-Its provides the
policy owner with the most amount of protection for the least amount of money
3 types of term insurance - ANSWER-level
increasing
decreasing
Level term insurance - ANSWER-Get a face amount that stays level for the entire time
10 year term policy
provides $50000
Increasing term insurance - ANSWER-Start low and increase gradually over course of
time
increases to 50000 by end of 10 years
Decreasing term insurance - ANSWER-Starts at 50000 and decreased gradually over
course of 10 years
When are decreasing term insurance typically used? - ANSWER-To pay for mortages
Do premiums change during any of these terms? - ANSWER-No the premium stays
level for all of them
Whole life insurance - ANSWER-Provides protection till death or age 100 paying for
coverage and life value
level premiums
cash value/ saving element
Another name for whole life insurance? - ANSWER-Permanent insurance
What do people pay for when they get whole life insurance? - ANSWER-Pay for cash
value or saving element AND
for coverage
QUESTIONS WITH COMPLETE
ANSWERS
Requirements for insurance producers - ANSWER-must be licensed to sell insurance in
their state and must be appointed by an authorized insurance company
Step 1 on issuing life insurance - ANSWER-Solicit client (offer to sell them insurance)
Step 2 on issuing life insurance - ANSWER-Give client a sells presentation on financial
product that fits their need
Step 3 on issuing life insurance - ANSWER-field underwriting
Job of field underwriter - ANSWER-fill out application containing:
- general information
- medical information
- agents report
What is an agent report? - ANSWER-Your observation of the client and your knowledge
of them
Step 4 on issuing life insurance - ANSWER-After finishing field underwriting application
you must collect the premium and forward both to the company underwriter
Job of company under writer - ANSWER-Determining if someone is eligible for
insurance and classifying them as:
preferred
standard
substandard
declined
Preferred - ANSWER-reduced risk of loss
covered at reduced rate
Standard - ANSWER-Average exposures
covered at standard rate
Substandard - ANSWER-Increased risk of loss
covered at increased rate
Declined - ANSWER-too high a risk
not covered
, Final step in issuing life insurance - ANSWER-Policy is issued and you deliver it
Two types of life insurance policies - ANSWER-Term and whole life
Term insurance - ANSWER-Temporary insurance; specific time period
has no cash value
can be renewed or converted
Another name for term insurance - ANSWER-Pure protection
Why is term insurance also known as pure protection? - ANSWER-Its provides the
policy owner with the most amount of protection for the least amount of money
3 types of term insurance - ANSWER-level
increasing
decreasing
Level term insurance - ANSWER-Get a face amount that stays level for the entire time
10 year term policy
provides $50000
Increasing term insurance - ANSWER-Start low and increase gradually over course of
time
increases to 50000 by end of 10 years
Decreasing term insurance - ANSWER-Starts at 50000 and decreased gradually over
course of 10 years
When are decreasing term insurance typically used? - ANSWER-To pay for mortages
Do premiums change during any of these terms? - ANSWER-No the premium stays
level for all of them
Whole life insurance - ANSWER-Provides protection till death or age 100 paying for
coverage and life value
level premiums
cash value/ saving element
Another name for whole life insurance? - ANSWER-Permanent insurance
What do people pay for when they get whole life insurance? - ANSWER-Pay for cash
value or saving element AND
for coverage
