Primerica Practice Exam Test
1. Which of the following characterizes a speculative risk? A. Having a financial
interest in an applicant B. Having the possibility for loss or gain C. Transferring
the risk of loss to another party D. Showing human carelessness or
irresponsibility - ✔ ✔ having the possibility for loss of gain
2. Which policy provision includes the application and the first premium from
the insured and the promise to pay from the insurer? A, Consent B. Conditional
receipt C. Conformity D. Consideration - ✔ ✔ Consideration
3. The guaranteed insurability rider allows the policyowner to purchase
additional insurance at the insured's A. Original age. B. Issue age. C. Attained
age. D. Average age. - ✔ ✔ attained age
4. A life policy that covers two lives and provides for payment of the death
benefit upon the death of the first insured is called A. Universal life. B.
Survivorship life. C. Joint life. D. Adjustable life. - ✔ ✔ joint life
,5. Whose signature is required to make changes to a written application for a
life insurance policy? A. Producer B. Company Regional Vice President C.
Applicant D. Executive Officer of the insurance company - ✔ ✔ applicant
6. A producer who knowingly misrepresents material information for the
purpose of inducing surrender a life insurance policy or annuity has committed
an illegal practice known as A. Concealment. B. Misrepresentation. C. Twisting.
D. Fraud, - ✔ ✔ twisting
7. Underwriting is the process of:
A. Writing policy forms to conform to Department guidelines.
B. Comparing different policies for an applicant.
C. Determining personal insurance needs.
D. Determining the company's risk regarding a proposed insured. - ✔ ✔
determining the company's risk regarding a proposed insured
8. An arrangement where the employer insurance on an employee is known as a
and employee agree to purchase and fund life A. Buy-sell agreement. B. Key
person. C. Deferred compensation funding. D. Split Dollar Plans, - ✔ ✔ split
dollar plans
, 9. Which of the following is TRUE about a joint and survivor life annuity?
A. The benefit will increase when the first annuitant dies.
B. Benefits stop when the first annuitant dies.
C.
D. Income stops upon the death of the last annuinant - ✔ ✔ income stops
upon the death of the last annuitant
10. A contract's agreement for life insurance is composed of a(n) A.
Consideration and acceptance. B. Offer and acceptance. C. Opportunity and
advantage. D. Acceptance and payment. - ✔ ✔ offer and acceptance
11. 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. - ✔ ✔ nonprofit organizations
12. The intent of replacement regulations is to protect the:
1. Which of the following characterizes a speculative risk? A. Having a financial
interest in an applicant B. Having the possibility for loss or gain C. Transferring
the risk of loss to another party D. Showing human carelessness or
irresponsibility - ✔ ✔ having the possibility for loss of gain
2. Which policy provision includes the application and the first premium from
the insured and the promise to pay from the insurer? A, Consent B. Conditional
receipt C. Conformity D. Consideration - ✔ ✔ Consideration
3. The guaranteed insurability rider allows the policyowner to purchase
additional insurance at the insured's A. Original age. B. Issue age. C. Attained
age. D. Average age. - ✔ ✔ attained age
4. A life policy that covers two lives and provides for payment of the death
benefit upon the death of the first insured is called A. Universal life. B.
Survivorship life. C. Joint life. D. Adjustable life. - ✔ ✔ joint life
,5. Whose signature is required to make changes to a written application for a
life insurance policy? A. Producer B. Company Regional Vice President C.
Applicant D. Executive Officer of the insurance company - ✔ ✔ applicant
6. A producer who knowingly misrepresents material information for the
purpose of inducing surrender a life insurance policy or annuity has committed
an illegal practice known as A. Concealment. B. Misrepresentation. C. Twisting.
D. Fraud, - ✔ ✔ twisting
7. Underwriting is the process of:
A. Writing policy forms to conform to Department guidelines.
B. Comparing different policies for an applicant.
C. Determining personal insurance needs.
D. Determining the company's risk regarding a proposed insured. - ✔ ✔
determining the company's risk regarding a proposed insured
8. An arrangement where the employer insurance on an employee is known as a
and employee agree to purchase and fund life A. Buy-sell agreement. B. Key
person. C. Deferred compensation funding. D. Split Dollar Plans, - ✔ ✔ split
dollar plans
, 9. Which of the following is TRUE about a joint and survivor life annuity?
A. The benefit will increase when the first annuitant dies.
B. Benefits stop when the first annuitant dies.
C.
D. Income stops upon the death of the last annuinant - ✔ ✔ income stops
upon the death of the last annuitant
10. A contract's agreement for life insurance is composed of a(n) A.
Consideration and acceptance. B. Offer and acceptance. C. Opportunity and
advantage. D. Acceptance and payment. - ✔ ✔ offer and acceptance
11. 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. - ✔ ✔ nonprofit organizations
12. The intent of replacement regulations is to protect the:
