Primerica-Life Insurance, With 1024 Exam
Questions
a - ✔ ✔ Anna loses her left arm in an accident that is covered by her
Accidental Death and Dismemberment policy. What kind of benefit will
Anna most likely receive from this policy?
a. The capital amount in a lump sum
b. The principal amount in a lump sum
b - ✔ ✔ Which of the following statements is NOT true, regarding
health insurance policy provisions?
a. All individual policies contain Universal Mandatory Provisions
b. All additional provisions written by insurers are cataloged by their
respective states.
b - ✔ ✔ Which of the following does NOT have to be disclosed in a
long-term care (LTC) policy?
a. Any riders or endorsements
b. The aggregate amount of premiums due
b - ✔ ✔ In a case where the primary beneficiary predeceases the
insured, in the event of the insured's death, the death benefit proceeds
will be paid to
a. Tertiary beneficiary.
b. Contingent beneficiary.
,a - ✔ ✔ Concerning insurance, the definition of a fiduciary
responsibility is
a. Handling insurer funds in a trust capacity.
b. Handling assets or money belonging to others.
b - ✔ ✔ What kind of LTC benefit would provide coverage for care
for functionally impaired adults on a less than 24-hour basis?
a. Residential Care
b. adult day care
a - ✔ ✔ What is the term for how frequently a policyowner is
required to pay the policy premium?
a. Mode
b. consideration
a - ✔ ✔ An insured pays $1,200 annually for her life insurance
premium. The insured applies this year' s $300 worth of accumulated
dividends to the next year's premium, thus reducing it to $900. What
option does this describe?
a. Reduction of Premium
b. Cash option
b - ✔ ✔ An insured has been injured in an accident. Although he is
still receiving benefits from his disability income policy, he does not
have to pay premiums. This means that the policy includes
a. Return of premium rider.
,b. Waiver of premium feature
b - ✔ ✔ Which of the following premium modes would result in the
highest annual cost for a Life Insurance Policy?
a. Annual
b. Monthly
b - ✔ ✔ A provision in a life insurance policy that provides for the
early payment of some portion of the policy face amount should the
insured suffer from a terminal illness or injury is called
a. Automatic premium loan provision
b. Accelerated Benefit provision
a - ✔ ✔ What is a primary difference between an IRA and an SEP?
a. Much more money can be contributed to a SEP.
b. Only $3,000 maximum per year can be contributed to a SEP.
b - ✔ ✔ How are funds contributed to a tax-sheltered annuity
treated for taxation?
a. The contributions are taxed as income for the employee, but are tax
free upon withdrawal.
b. The contributions are not included as income for the employee, but
are taxable upon distribution.
b - ✔ ✔ At what age may an individual make withdrawals from an
HSA for nonhealth purposes without being penalized?
a. 59½
, b. 65
a - ✔ ✔ Which of the following would be a typical maximum benefit
offered by major medical plans?
a. $1 million
b. $50,000
b - ✔ ✔ What characteristic must an annuity have if it is used to
accumulate funds in an IRA?
a. Tax-deductible
b. Tax- qualified
b - ✔ ✔ A man wants to buy a life insurance policy in which he can
count on guaranteed minimum benefits. Which type should he buy?
a. Level
b. Fixed
b - ✔ ✔ Which of the following is true regarding the annuity period?
a. It is the period of time during which the annuitant makes premium
payments into the annuity.
b. It may last for the lifetime of the annuitant or for a shorter period of
time.
a - ✔ ✔ Annually renewable term policies provide a level death
benefit for a premium that
a. Increases annually.
Questions
a - ✔ ✔ Anna loses her left arm in an accident that is covered by her
Accidental Death and Dismemberment policy. What kind of benefit will
Anna most likely receive from this policy?
a. The capital amount in a lump sum
b. The principal amount in a lump sum
b - ✔ ✔ Which of the following statements is NOT true, regarding
health insurance policy provisions?
a. All individual policies contain Universal Mandatory Provisions
b. All additional provisions written by insurers are cataloged by their
respective states.
b - ✔ ✔ Which of the following does NOT have to be disclosed in a
long-term care (LTC) policy?
a. Any riders or endorsements
b. The aggregate amount of premiums due
b - ✔ ✔ In a case where the primary beneficiary predeceases the
insured, in the event of the insured's death, the death benefit proceeds
will be paid to
a. Tertiary beneficiary.
b. Contingent beneficiary.
,a - ✔ ✔ Concerning insurance, the definition of a fiduciary
responsibility is
a. Handling insurer funds in a trust capacity.
b. Handling assets or money belonging to others.
b - ✔ ✔ What kind of LTC benefit would provide coverage for care
for functionally impaired adults on a less than 24-hour basis?
a. Residential Care
b. adult day care
a - ✔ ✔ What is the term for how frequently a policyowner is
required to pay the policy premium?
a. Mode
b. consideration
a - ✔ ✔ An insured pays $1,200 annually for her life insurance
premium. The insured applies this year' s $300 worth of accumulated
dividends to the next year's premium, thus reducing it to $900. What
option does this describe?
a. Reduction of Premium
b. Cash option
b - ✔ ✔ An insured has been injured in an accident. Although he is
still receiving benefits from his disability income policy, he does not
have to pay premiums. This means that the policy includes
a. Return of premium rider.
,b. Waiver of premium feature
b - ✔ ✔ Which of the following premium modes would result in the
highest annual cost for a Life Insurance Policy?
a. Annual
b. Monthly
b - ✔ ✔ A provision in a life insurance policy that provides for the
early payment of some portion of the policy face amount should the
insured suffer from a terminal illness or injury is called
a. Automatic premium loan provision
b. Accelerated Benefit provision
a - ✔ ✔ What is a primary difference between an IRA and an SEP?
a. Much more money can be contributed to a SEP.
b. Only $3,000 maximum per year can be contributed to a SEP.
b - ✔ ✔ How are funds contributed to a tax-sheltered annuity
treated for taxation?
a. The contributions are taxed as income for the employee, but are tax
free upon withdrawal.
b. The contributions are not included as income for the employee, but
are taxable upon distribution.
b - ✔ ✔ At what age may an individual make withdrawals from an
HSA for nonhealth purposes without being penalized?
a. 59½
, b. 65
a - ✔ ✔ Which of the following would be a typical maximum benefit
offered by major medical plans?
a. $1 million
b. $50,000
b - ✔ ✔ What characteristic must an annuity have if it is used to
accumulate funds in an IRA?
a. Tax-deductible
b. Tax- qualified
b - ✔ ✔ A man wants to buy a life insurance policy in which he can
count on guaranteed minimum benefits. Which type should he buy?
a. Level
b. Fixed
b - ✔ ✔ Which of the following is true regarding the annuity period?
a. It is the period of time during which the annuitant makes premium
payments into the annuity.
b. It may last for the lifetime of the annuitant or for a shorter period of
time.
a - ✔ ✔ Annually renewable term policies provide a level death
benefit for a premium that
a. Increases annually.
