PRIMERICA LIFE INSURANCE EXAM RATED A+
A father owns a life insurance policy on his 15-year-old daughter. The policy contains
the optional Payor Benefit rider. If the father becomes disabled, what will happen to the
life insurance premiums?
a. the insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums
b. the insureds premiums will be waived until she is 21
c. the premiums will become tax deductible until the insureds 18th birthday
d. since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected - ANSWER-B. the insureds premiums will be
waived until she is 21
a long stretch of national economic hardship causes a 7% rate of inflation. A
policyowner notices that the face value of her life insurance policy has be raised 7% as
a result. Which policy rider caused this change?
a. inflation rider
b. cost of living rider
c. value of adjustment rider
d. return of premium rider - ANSWER-B. cost of living rider
the cost of living rider annually adjusts the policy's face vale in accordance with the
national rate of inflation or deflation. This rider adjusts the face amount of the policy to
correspond with the rate of inflation, in order to keep the initial value of the policy
constant over time
a Louisiana insurance company ran and advertisement in June 2008. When could the
company discard the file on this document?
a. June 2013
b. June 2012
c. June 2011
d. June 2009 - ANSWER-B. June 2012
in Louisiana, insurance companies are required to keep files of all advertisements used
for 4 years, or until he next examination by the Department
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide
additional protection until his children finished college. He discovered that his policy
a. required a premium increase each renewal
b. built cash value
c. required proof of insurability ever year
,d. decreased death benefit each renewal - ANSWER-A. required a premium increase
each renewal
annually renewable term policies premiums are adjusted each year to the insured's
attained age, however, the policy may be guaranteed renewable. Death benefits remain
level, and switch any term policy, there are no cash values
a participating insurance policy may do which of the following?
a. require 80% participation
b. pay dividends to the policyowner
c. provide group coverage
d. pay dividends to the stockholder - ANSWER-B. pay dividends to the policyowner
a policy that insures 2 or more lives and pays on the death of the last insured is
a. joint life
b. group life
c. survivorship life
d. family protection ife - ANSWER-C. survivorship life
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
d. explain the rating procedures if the policy is rated differently than applied for -
ANSWER-A. disclose commissions earned fro the sale of the policy
a producer must explain policy provisions, exclusions, and riders at the time of the
delivery, as well as the rating procedures especially if the policy is rated differently than
applied for. The producer must also collect any due premium and have the insured sign
the statement go continued good health
A producer has been notified by the Commissioner to stop using an unapproved trade
name. How many days does the producer have to change the trade name before facing
a fine?
a. 5 business days
b. 10 days
c. 30 days
d. the name must be changed immediately - ANSWER-B. 10 days
a producer who contributes to use a unapproved trade name for 10 or more days after
being notified will face a fine of up to $5,000
,a producer in another state wants to become a producer in Louisiana. The other state
gives the same privileges to Louisiana producers wanting to be licensed in that state as
it does to its own producers. Louisiana, therefore, extends the licensing privileges to the
prospective producer of the other state. What is this called?
a. fair exchange
b. controlled business
c. subrogation
d. reciprocity - ANSWER-D. reciprocity
reciprocity occurs when the state in which the person resides accords the same
privilege to residents of Louisiana
a producer is helping a married couple determine the financial needs of their children in
the event of one or both should die prematurely. This is a personal use of life insurance
known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning - ANSWER-C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to be able
to maintain their lifestyle in the event of the insured's death. This is known as survivor
protection
a producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. this is a personal use of life insurance
known as
a. survivorship insurance
b. juvenile protection provision
c. survivor protection
d. life plannning - ANSWER-C. survivor protection
A producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. This is a personal use of life insurance
known as
a. survivorship insurance
b. juvenile protection provision
c. survivor protection
d. life planning - ANSWER-C. survivor protection
, life insurance can provide the funds necessary for the survivors of the insured to be able
to maintain their lifestyle in the event of the insured's death. this is known as survivor
protection
A rider that may be attached to a life insurance policy that will adjust the face amount
based upon a specific index, such as the Consumer Price Index, is called
a. accelerated benefit rider
b. living need rider
c. payor rider
d. cost of living rider - ANSWER-D. cost of living rider
a "cost of living rider" adjusts the face amount of a policy to maintain the relationship of
the face amount and increase in the cost of living
a statement which is the absolute truth is
a. warranty
b. representation
c. misrepresentation
d. fraud - ANSWER-a. warranty
a straight life policy has what type of premium?
a. an increasing annual premium for the life of the insured
b. a decreasing annual premium for the life of the insured
c. a variable annual premium for the life of the insured
d. a level annual premium for the life of the insured - ANSWER-D. a level annual
premium for the life of the insured
a tax-sheltered annuity is a special tax-favored retirement plan available to
a. anyone
b. certain age groups only
c. certain groups depending on factors such as race, gender, and age
d. certain groups of employees only - ANSWER-D. certain groups of employees only
a temporary license is good for
a. 30 days
b. 60 days
c. 90 days
d. 180 days - ANSWER-180 days
a temporary license is good for 180 days
A father owns a life insurance policy on his 15-year-old daughter. The policy contains
the optional Payor Benefit rider. If the father becomes disabled, what will happen to the
life insurance premiums?
a. the insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums
b. the insureds premiums will be waived until she is 21
c. the premiums will become tax deductible until the insureds 18th birthday
d. since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected - ANSWER-B. the insureds premiums will be
waived until she is 21
a long stretch of national economic hardship causes a 7% rate of inflation. A
policyowner notices that the face value of her life insurance policy has be raised 7% as
a result. Which policy rider caused this change?
a. inflation rider
b. cost of living rider
c. value of adjustment rider
d. return of premium rider - ANSWER-B. cost of living rider
the cost of living rider annually adjusts the policy's face vale in accordance with the
national rate of inflation or deflation. This rider adjusts the face amount of the policy to
correspond with the rate of inflation, in order to keep the initial value of the policy
constant over time
a Louisiana insurance company ran and advertisement in June 2008. When could the
company discard the file on this document?
a. June 2013
b. June 2012
c. June 2011
d. June 2009 - ANSWER-B. June 2012
in Louisiana, insurance companies are required to keep files of all advertisements used
for 4 years, or until he next examination by the Department
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide
additional protection until his children finished college. He discovered that his policy
a. required a premium increase each renewal
b. built cash value
c. required proof of insurability ever year
,d. decreased death benefit each renewal - ANSWER-A. required a premium increase
each renewal
annually renewable term policies premiums are adjusted each year to the insured's
attained age, however, the policy may be guaranteed renewable. Death benefits remain
level, and switch any term policy, there are no cash values
a participating insurance policy may do which of the following?
a. require 80% participation
b. pay dividends to the policyowner
c. provide group coverage
d. pay dividends to the stockholder - ANSWER-B. pay dividends to the policyowner
a policy that insures 2 or more lives and pays on the death of the last insured is
a. joint life
b. group life
c. survivorship life
d. family protection ife - ANSWER-C. survivorship life
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
d. explain the rating procedures if the policy is rated differently than applied for -
ANSWER-A. disclose commissions earned fro the sale of the policy
a producer must explain policy provisions, exclusions, and riders at the time of the
delivery, as well as the rating procedures especially if the policy is rated differently than
applied for. The producer must also collect any due premium and have the insured sign
the statement go continued good health
A producer has been notified by the Commissioner to stop using an unapproved trade
name. How many days does the producer have to change the trade name before facing
a fine?
a. 5 business days
b. 10 days
c. 30 days
d. the name must be changed immediately - ANSWER-B. 10 days
a producer who contributes to use a unapproved trade name for 10 or more days after
being notified will face a fine of up to $5,000
,a producer in another state wants to become a producer in Louisiana. The other state
gives the same privileges to Louisiana producers wanting to be licensed in that state as
it does to its own producers. Louisiana, therefore, extends the licensing privileges to the
prospective producer of the other state. What is this called?
a. fair exchange
b. controlled business
c. subrogation
d. reciprocity - ANSWER-D. reciprocity
reciprocity occurs when the state in which the person resides accords the same
privilege to residents of Louisiana
a producer is helping a married couple determine the financial needs of their children in
the event of one or both should die prematurely. This is a personal use of life insurance
known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning - ANSWER-C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to be able
to maintain their lifestyle in the event of the insured's death. This is known as survivor
protection
a producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. this is a personal use of life insurance
known as
a. survivorship insurance
b. juvenile protection provision
c. survivor protection
d. life plannning - ANSWER-C. survivor protection
A producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. This is a personal use of life insurance
known as
a. survivorship insurance
b. juvenile protection provision
c. survivor protection
d. life planning - ANSWER-C. survivor protection
, life insurance can provide the funds necessary for the survivors of the insured to be able
to maintain their lifestyle in the event of the insured's death. this is known as survivor
protection
A rider that may be attached to a life insurance policy that will adjust the face amount
based upon a specific index, such as the Consumer Price Index, is called
a. accelerated benefit rider
b. living need rider
c. payor rider
d. cost of living rider - ANSWER-D. cost of living rider
a "cost of living rider" adjusts the face amount of a policy to maintain the relationship of
the face amount and increase in the cost of living
a statement which is the absolute truth is
a. warranty
b. representation
c. misrepresentation
d. fraud - ANSWER-a. warranty
a straight life policy has what type of premium?
a. an increasing annual premium for the life of the insured
b. a decreasing annual premium for the life of the insured
c. a variable annual premium for the life of the insured
d. a level annual premium for the life of the insured - ANSWER-D. a level annual
premium for the life of the insured
a tax-sheltered annuity is a special tax-favored retirement plan available to
a. anyone
b. certain age groups only
c. certain groups depending on factors such as race, gender, and age
d. certain groups of employees only - ANSWER-D. certain groups of employees only
a temporary license is good for
a. 30 days
b. 60 days
c. 90 days
d. 180 days - ANSWER-180 days
a temporary license is good for 180 days
