PRIMERICA LIFE AND INSURANCE EXAM 2024 | ACCURATE CURRENTLY TESTING VERSION WITH A STUDY GUIDE AND KNOWLEDGE FLASHCARDS | ACCURATE AND VERIFIED FOR GUARANTEED PASS | LATEST UPDATE

PRIMERICA LIFE AND INSURANCE EXAM 2024 | ACCURATE
CURRENTLY TESTING VERSION WITH A STUDY GUIDE AND
KNOWLEDGE FLASHCARDS | ACCURATE AND VERIFIED
FOR GUARANTEED PASS | LATEST UPDATE



Theauthoritygranted to an agent throughthe agent's contract is referred to as
x, x, x, x, x, x, x, x, x, x, x, x, x,




a. Absolute authority x,




b. Express authority x,




c. Apparentauthority x,




d. Impliedauthority x,




B.Express authority
x, x,




express powers are written into the contract between the insurerand the agent
x, x, x, x, x, x, x, x, x, x, x, x,




Insurancepoliciesarenot drawn upthoughnegotiations, andaninsuredhaslittletosayabout its
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




provisions. What contract characteristic does this describe?
x, x, x, x, x, x, x,




A. Unilateral x,




b. Conditional
c. Personal
d. Adhesion
D. Adhesion x,




acontract ofadhesion ispreparedbyonlythe insurer; the insured's onlyoption is to acceptor reject the
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




policy as its written
x, x, x, x,




Whichofthefollowinginsurersareownedbystockholderswhohavetheusualrightsof ownership,
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




including the right of voting?
x, x, x, x, x,




A. Reciprocal x,




b. Fraternal
c. Stock
d. Mutual
C. Stock x,




onlystock insurance companies are owned and controlled bystockholders
x, x, x, x, x, x, x, x, x,




Whichofthe followingbest describes theconcept that theinsured pays asmall amount of
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,

,premiumfor a largeamount of risk on the part of the insurance company?
x, x, x, x, x, x, x, x, x, x, x, x, x,




A. Subrogation
x,

,b. Warranty
c. Aleatory
d. Adhesion
C. Aleatory
x,




aninsurancecontractisan aleatorycontractinthat it requiresarelativelysmall amountof premium for a
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




large risk
x, x,




Whenaninsuredmakestruthfulstatementsontheapplicationforinsuranceandpaysthe required
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




premium, it is known as which of the following?
x, x, x, x, x, x, x, x, x,




A. Legalpurpose
x, x,




b. Contractof adhesion x, x,




c. Acceptance
d. Consideration
D. Consideration
x,




considerationissomethingofvaluethateachpartygivestotheother.Theconsiderationonthe part of the x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




insured is the payment of premium and the representations made in the application
x, x, x, x, x, x, x, x, x, x, x, x, x,




Whichof the following would qualifyas a competent partyin an insurance contract?
x, x, x, x, x, x, x, x, x, x, x, x, x,




A. The applicant is intoxicated at thetime of application
x, x, x, x, x, x, x, x, x,




b. Theapplicant is12 year old studentx, x, x, x, x, x,




c. Theapplicant is under the influence of a mind-impairingmedication at the time ofapplication
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




d. Theapplicant has a prior felonyconviction
x, x, x, x, x, x,




D. The applicant has a prior felonyconviction
x, x, x, x, x, x, x,




when an insurer and insured enter into a contract, both parties must be legal of age and mentally
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




competent. It is legal for a person convicted of a felony to buy an insurance contract. An intoxicated
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




person,however,maynotbementallycompetent,a12 yearoldstudentisconsidered to be underage in
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




most states and a person under mind-impairing medication most likelywould not be mentally
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




competent
x,




Aninsurerneglectstopayalegitimateclaimthatiscoveredunderthetermsofthepolicy.Which of the
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




following insurance principles has the insurer violated?
x, x, x, x, x, x, x,




A. Representation
x,




b. Adhesion
c. Consideration
d. Good health x,

, C. Consideration
x,




the binding force in any contract is consideration. Consideration on the part of the insureds the
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




payment of premiums and the health representations made in the application. Consideration on the
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




part of the insurer is the promise to pay in the even of loss
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




Whichof the followingis a primarysource of information used for insurance underwriting?
x, x, x, x, x, x, x, x, x, x, x, x, x,




A. Application x,




b. Applicant interviews
x, x,




c.Medical records.
x, x,




D. Private investigations
x, x,




A. Application x,




the application contains most of the information used for underwriting purposes. This is why its
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




completeness and accurarcy are so critical
x, x, x, x, x, x,




An insured purchased an insurance policy5 years ago. Last year, she received a dividend check fromthe
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




insurancecompanythatwasnottaxable.This year,shedidnot receiveacheckfromthe insurer. From
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




what type of insurer did the insured purchase the policy?
x, x, x, x, x, x, x, x, x, x,




A. Mutual x,




b. Reciprocal
c. Nonprofitserviceorganization x, x,




d. Stock
A. Mutual x,




fundsnotpaid outafterpayingclaims and otheroperatingcosts arereturnedtothepolicyowners in the
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




form of a dividend. If all funds are paid out, no dividends are paid
x, x, x, x, x, x, x, x, x, x, x, x, x, x,




Followingacareerchange,aninsuredisnolongerrequiredtoperformmanyphysical activities, so he
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




has implemented a program where he walks and jogs for 45 minutes each morning. The insured has
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario
x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x, x,




describe?
x,




A. Retention x,




b. Reduction
c. Transfer
d. Avoidance