Primerica Practice Test
An insurer mails an insurance policy to a new policyowner. When the
insurer relinquishes control of the policy, the policy is considered - ✔
✔ delivered
This part of the application provides information about an applicant's
financial condition and character, as well as the purpose of sale and
how long the agent has known the applicant: - ✔ ✔ agent's report
If a licensed life insurance agent wants to sell variable life policies, what
additional license must the agent obtain? - ✔ ✔ securities
An agent delivers a policy to an insured, and 9 days later the insured
returns the policy and wants a complete refund. What provision covers
this circumstance? - ✔ ✔ free look
The "pay in" phase of the annuity is known as what period? - ✔ ✔
accumulation period
For an insurance contract, the principle of utmost good faith means - ✔
✔ each party relies upon the truthfulness of the other
Who would be allowed catch-up contributions in a qualified plan? - ✔
✔ individuals who are age 50 and older
Which of the following types of annuities would be best suited for a
retired couple who are seeking income for as long as either lives? - ✔
✔ joint and survivor
, Which law is the foundation of the statistical prediction of loss upon
which rates for insurance are calculated? - ✔ ✔ law of large
numbers
The MIB is a nonprofit trade association that maintains - ✔ ✔
medical information on applicants for life adn health insurance
What is the purpose of the grace period in life insurance policies - ✔
✔ to protect the policyowner against an unintentional lapse of the
policy
What type of permanent insurance allows the policyowner to pay for a
policy in a specified period of time, and the policyowner does not have
to make any more premium payments for the life of the policy? - ✔
✔ limited payment
What does the payor benefit rider protect? - ✔ ✔ premium
payments for a juvenile policy
How long does an employee have to convert group policy coverage to
an individual policy without evidence of insurability? - ✔ ✔ 31 days
If the cash value exceeds the premiums paid in a whole life policy, what
are the tax consequences if the policy is surrendered - ✔ ✔ the
portion that exceeds the premiums paid is taxable
Betty is the only beneficiary named on her husband Bob's policy which
has a Common Disaster provision. They are in a car wreck, and Bob dies
instantly. Betty lives for 29 days. Who will receive the death benefit? -
✔ ✔ Bob's estate
An insurer mails an insurance policy to a new policyowner. When the
insurer relinquishes control of the policy, the policy is considered - ✔
✔ delivered
This part of the application provides information about an applicant's
financial condition and character, as well as the purpose of sale and
how long the agent has known the applicant: - ✔ ✔ agent's report
If a licensed life insurance agent wants to sell variable life policies, what
additional license must the agent obtain? - ✔ ✔ securities
An agent delivers a policy to an insured, and 9 days later the insured
returns the policy and wants a complete refund. What provision covers
this circumstance? - ✔ ✔ free look
The "pay in" phase of the annuity is known as what period? - ✔ ✔
accumulation period
For an insurance contract, the principle of utmost good faith means - ✔
✔ each party relies upon the truthfulness of the other
Who would be allowed catch-up contributions in a qualified plan? - ✔
✔ individuals who are age 50 and older
Which of the following types of annuities would be best suited for a
retired couple who are seeking income for as long as either lives? - ✔
✔ joint and survivor
, Which law is the foundation of the statistical prediction of loss upon
which rates for insurance are calculated? - ✔ ✔ law of large
numbers
The MIB is a nonprofit trade association that maintains - ✔ ✔
medical information on applicants for life adn health insurance
What is the purpose of the grace period in life insurance policies - ✔
✔ to protect the policyowner against an unintentional lapse of the
policy
What type of permanent insurance allows the policyowner to pay for a
policy in a specified period of time, and the policyowner does not have
to make any more premium payments for the life of the policy? - ✔
✔ limited payment
What does the payor benefit rider protect? - ✔ ✔ premium
payments for a juvenile policy
How long does an employee have to convert group policy coverage to
an individual policy without evidence of insurability? - ✔ ✔ 31 days
If the cash value exceeds the premiums paid in a whole life policy, what
are the tax consequences if the policy is surrendered - ✔ ✔ the
portion that exceeds the premiums paid is taxable
Betty is the only beneficiary named on her husband Bob's policy which
has a Common Disaster provision. They are in a car wreck, and Bob dies
instantly. Betty lives for 29 days. Who will receive the death benefit? -
✔ ✔ Bob's estate
