Life Insurance Exam 1 (Primerica)
Questions And Answers
1. 401k plan CORRECT ANSWER>> A qualified retirement plan in which the
employee can set aside a portion of their income
with pre-tax dollars.
2. Absolute Assignment v. Collateral
Assignment CORRECT ANSWER>> Absolute A permanent and irrevocable transfer
of rights and/or benefits by the policyowner.
Collateral CORRECT ANSWER>> A temporary and/or revocable transfer
of benefits by the policyowner.
3. Accelerated Death Benefit CORRECT ANSWER>> Policy provision that allows full or partial
payment of the policy's death benefit before the
insured's death if he/she is terminally ill.
4. Accidental Death Benefit CORRECT ANSWER>> An extra cost rider that requires the insurance
company to pay an additional benefit in the event
that the insured dies within 90 days of an
accident as a direct result of the accident.
5. Accumulate at Interest CORRECT ANSWER>> The Dividend Option where the policyowner
leaves the dividends with the insurer to invest
and earn interest.
6. Adhesion CORRECT ANSWER>> Since the insurer created all the documents of
the contract, any ambiguities in the contract will
be settled in favor of the insured. Since the
insurer wrote the contract they are stuck with it
7. Adverse Selection CORRECT ANSWER>> The tendency for less favorable risks to seek or
, continue insurance to a greater extent than more
favorable risks.
8. Agency Agreement or Agency Contract CORRECT ANSWER>> A legal document containing
the terms of the
agreement between the agent and the insurance
company. It clearly defines what an agent can
and cannot do, and how he/she will be
compensated.
9. Agent Authorities CORRECT ANSWER>> Expressed CORRECT ANSWER>> Power or authority
specifically
granted in writing to an agent by the insurance
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Life Insurance Exam 1 (Primerica)
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company in their Agency Agreement. Apparent CORRECT ANSWER>>
Power or authority that the public reasonably
assumes an agent has based upon his/her
actions. Implied CORRECT ANSWER>> Power or authority that is not
expressly granted by the company but that an
agent can assume or that are implied he/she has
in order to transact insurance business.
10. Agent/Producer CORRECT ANSWER>> Anyone who sells or aids in the selling of
insurance. Legally represents the company.
11. Agent's Report CORRECT ANSWER>> A written report from the agent submitted to the
insurer along with the application disclosing what
the agent knows, observed, or learned about the
proposed insured's risks.
Questions And Answers
1. 401k plan CORRECT ANSWER>> A qualified retirement plan in which the
employee can set aside a portion of their income
with pre-tax dollars.
2. Absolute Assignment v. Collateral
Assignment CORRECT ANSWER>> Absolute A permanent and irrevocable transfer
of rights and/or benefits by the policyowner.
Collateral CORRECT ANSWER>> A temporary and/or revocable transfer
of benefits by the policyowner.
3. Accelerated Death Benefit CORRECT ANSWER>> Policy provision that allows full or partial
payment of the policy's death benefit before the
insured's death if he/she is terminally ill.
4. Accidental Death Benefit CORRECT ANSWER>> An extra cost rider that requires the insurance
company to pay an additional benefit in the event
that the insured dies within 90 days of an
accident as a direct result of the accident.
5. Accumulate at Interest CORRECT ANSWER>> The Dividend Option where the policyowner
leaves the dividends with the insurer to invest
and earn interest.
6. Adhesion CORRECT ANSWER>> Since the insurer created all the documents of
the contract, any ambiguities in the contract will
be settled in favor of the insured. Since the
insurer wrote the contract they are stuck with it
7. Adverse Selection CORRECT ANSWER>> The tendency for less favorable risks to seek or
, continue insurance to a greater extent than more
favorable risks.
8. Agency Agreement or Agency Contract CORRECT ANSWER>> A legal document containing
the terms of the
agreement between the agent and the insurance
company. It clearly defines what an agent can
and cannot do, and how he/she will be
compensated.
9. Agent Authorities CORRECT ANSWER>> Expressed CORRECT ANSWER>> Power or authority
specifically
granted in writing to an agent by the insurance
1/3
Life Insurance Exam 1 (Primerica)
Study online at https//quizlet.com/_4b6r0d
company in their Agency Agreement. Apparent CORRECT ANSWER>>
Power or authority that the public reasonably
assumes an agent has based upon his/her
actions. Implied CORRECT ANSWER>> Power or authority that is not
expressly granted by the company but that an
agent can assume or that are implied he/she has
in order to transact insurance business.
10. Agent/Producer CORRECT ANSWER>> Anyone who sells or aids in the selling of
insurance. Legally represents the company.
11. Agent's Report CORRECT ANSWER>> A written report from the agent submitted to the
insurer along with the application disclosing what
the agent knows, observed, or learned about the
proposed insured's risks.
