Primerica – 104 Exam test Questions
All of the following are TRUE regarding the convertibility option under
a term life insurance policy EXCEPT
a) Upon conversion, the death benefit of the permanent policy will be
reduced by 50%.
b) Evidence of insurability is not required.
c) Most term policies contain a convertibility option.
d) Upon conversion, the premium for the permanent policy will be
based upon attained age. - ✔ ✔ Upon conversion, the death benefit
of the permanent policy will be reduced by 50%
A Return of Premium term life policy is written as what type of term
coverage?
a) Renewable
b) Level
c) Increasing
d) Decreasing - ✔ ✔ Increasing
Employer contributions made to a qualified plan
a) Are subject to vesting requirements.
b) May discriminate in favor of highly paid employees.
c) Are after-tax contributions.
,d) Are taxed annually as salary. - ✔ ✔ Are subject to vesting
requirements
Both Universal Life and Variable Universal Life have a
a) Flexible premium.
b) Level fixed premium.
c) Decreasing premium.
d) Increasing premium. - ✔ ✔ Flexible premium
An individual applied for an insurance policy and paid the initial
premium. The insurer issued a conditional receipt. Five days later the
applicant had to submit to a medical exam. If the policy is issued, what
would be the policy's effective date?
a) The date of policy delivery
b) The date of issue
c) The date of application
d) The date of medical exam - ✔ ✔ The date of medical exam
If an insured continually uses the automatic premium loan option to
pay the policy premium,
a) The policy will terminate when the cash value is reduced to nothing.
b) The face amount of the policy will be reduced by the automatic
premium loan amount.
c) The cash value will continue to increase.
,d) The insurer will increase the premium amount. - ✔ ✔ The policy
will terminate when the cash value is reduced to nothing
Which two terms are associated directly with the premium?
a) Fixed or variable
b) Term or permanent
c) Renewable or convertible
d) Level or flexible - ✔ ✔ Level or flexible
In an annuity, the accumulated money is converted into a stream of
income during which time period?
a) Conversion period
b) Annuitization period
c) Payment period
d) Amortization period - ✔ ✔ Annuitization period
An insurer neglects to pay a legitimate claim that is covered under the
terms of the policy. Which of the following insurance principles has the
insurer violated?
a) Consideration
b) Good faith
c) Representation
d) Adhesion - ✔ ✔ Consideration
, Which of the following is an example of liquidity in a life insurance
contract?
a) The death benefit paid to the beneficiary
b) The flexible premium
c) The money in a savings account
d) The cash value available to the policyowner - ✔ ✔ The cash value
available to the policyowner
What percentage of continuing education hours must be in a classroom
setting?
a) 25%
b) 50%
c) 75%
d) 100% - ✔ ✔ 50%
If an insurer meets the state's financial requirements and is approved
to transact business in the state, it is considered to be
a) Certified.
b) Qualified.
c) Approved.
d) Authorized. - ✔ ✔ Authorized.
All of the following are TRUE regarding the convertibility option under
a term life insurance policy EXCEPT
a) Upon conversion, the death benefit of the permanent policy will be
reduced by 50%.
b) Evidence of insurability is not required.
c) Most term policies contain a convertibility option.
d) Upon conversion, the premium for the permanent policy will be
based upon attained age. - ✔ ✔ Upon conversion, the death benefit
of the permanent policy will be reduced by 50%
A Return of Premium term life policy is written as what type of term
coverage?
a) Renewable
b) Level
c) Increasing
d) Decreasing - ✔ ✔ Increasing
Employer contributions made to a qualified plan
a) Are subject to vesting requirements.
b) May discriminate in favor of highly paid employees.
c) Are after-tax contributions.
,d) Are taxed annually as salary. - ✔ ✔ Are subject to vesting
requirements
Both Universal Life and Variable Universal Life have a
a) Flexible premium.
b) Level fixed premium.
c) Decreasing premium.
d) Increasing premium. - ✔ ✔ Flexible premium
An individual applied for an insurance policy and paid the initial
premium. The insurer issued a conditional receipt. Five days later the
applicant had to submit to a medical exam. If the policy is issued, what
would be the policy's effective date?
a) The date of policy delivery
b) The date of issue
c) The date of application
d) The date of medical exam - ✔ ✔ The date of medical exam
If an insured continually uses the automatic premium loan option to
pay the policy premium,
a) The policy will terminate when the cash value is reduced to nothing.
b) The face amount of the policy will be reduced by the automatic
premium loan amount.
c) The cash value will continue to increase.
,d) The insurer will increase the premium amount. - ✔ ✔ The policy
will terminate when the cash value is reduced to nothing
Which two terms are associated directly with the premium?
a) Fixed or variable
b) Term or permanent
c) Renewable or convertible
d) Level or flexible - ✔ ✔ Level or flexible
In an annuity, the accumulated money is converted into a stream of
income during which time period?
a) Conversion period
b) Annuitization period
c) Payment period
d) Amortization period - ✔ ✔ Annuitization period
An insurer neglects to pay a legitimate claim that is covered under the
terms of the policy. Which of the following insurance principles has the
insurer violated?
a) Consideration
b) Good faith
c) Representation
d) Adhesion - ✔ ✔ Consideration
, Which of the following is an example of liquidity in a life insurance
contract?
a) The death benefit paid to the beneficiary
b) The flexible premium
c) The money in a savings account
d) The cash value available to the policyowner - ✔ ✔ The cash value
available to the policyowner
What percentage of continuing education hours must be in a classroom
setting?
a) 25%
b) 50%
c) 75%
d) 100% - ✔ ✔ 50%
If an insurer meets the state's financial requirements and is approved
to transact business in the state, it is considered to be
a) Certified.
b) Qualified.
c) Approved.
d) Authorized. - ✔ ✔ Authorized.
