Life Insurance Primerica Exam
Questions 100% Complete
Solutions New Update
Which will be included in a policy summary? - Answers -✔✔ Premium amounts and
surrender values
Why should the producer personally deliver the policy when the first premium has
already been paid? - Answers -✔✔ To help the insured understand all aspects of the
contract
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - Answers -✔✔ Conditional
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant - Answers -✔✔ With the policy
If an applicant for a life insurance policy is found to be a substandard risk, the insurance
company is most likely to - Answers -✔✔ Charge a higher premium
Which of the following best details the underwriting process for life insurance? -
Answers -✔✔ Selection, classification, and rating of risks
Upon policy delivery, the producer may be required to obtain any of the following
EXCEPT - Answers -✔✔ Signed waiver of premium
Which of the following is a risk classification used by underwriters for insurance? -
Answers -✔✔ Standard
Which of the following documents delivered to the policy owner includes information
about premium amounts, cash values, surrender values, and death benefits for specific
policy years? - Answers -✔✔ A policy summary
When both parties to a contract must perform certain duties and follow rules of conduct
to make the contract enforceable, the contract is - Answers -✔✔ Conditional
Representations are written or oral statements made by the applicant that are - Answers
-✔✔ Considered true to the best of the applicant's knowledge
,Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a - Answers -✔✔ Premium receipt
All of the following are duties and responsibilities of producers at the time of application
EXCEPT - Answers -✔✔ Change any incorrect statement on the application by
personally initialing next to the corrected statement (must be initialed by the applicant)
In insurance policies, the insured is not legally bound to any particular action in the
insurance contract, but the insurer is legally obligated to pay losses covered by the
policy. What contract element does this describe? - Answers -✔✔ Unilateral
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? - Answers -
✔✔ Consideration
Which of the following is TRUE regarding the premium in term policies? - Answers -✔✔
The premium is level
Which of the following terms best describe the coverage provided by term policies, as
compared to any other form of protection? - Answers -✔✔ Greatest
Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial
resources? - Answers -✔✔ Term
A Return of Premium term life policy is written as what type of term coverage? -
Answers -✔✔ Increasing
All of the following are true regarding a decreasing term policy EXCEPT - Answers -
✔✔ The payable premium amount steadily declines throughout the duration of the
contract
What does "level" refer to in level term insurance? - Answers -✔✔ Face amount
Which best describes annually renewable term insurance? - Answers -✔✔ It is level
term insurance
What characteristic makes whole life permanent protection? - Answers -✔✔ Coverage
until death or age 100
Which of the following types of policies will provide permanent protection? - Answers -
✔✔ Whole life
, A Straight Life policy has what type of premium? - Answers -✔✔ A level annual
premium for the life of the insured
Which statement is NOT true regarding a Straight Life Policy? - Answers -✔✔ It's
premium steadily decreases over time, in response to its growing cash value
Which of the following policies would be classified as a traditional level premium
contract? - Answers -✔✔ Straight Life
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age of 100
is called - Answers -✔✔ Single premium whole life
Your client wants both protection and savings from the insurance, and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client? -
Answers -✔✔ Limited pay whole life
Which statement is NOT true regarding a Straight Life policy? - Answers -✔✔ It's
premium steadily decreases over time, in response to its growing cash value
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answers -✔✔ For 20 years or until death,
whichever occurs first
An insured owns a life insurance policy. To be able to pay some of her medical bills, she
withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the
insurer charges a fee. What type of policy does the insured most likely have? - Answers
-✔✔ Universal life
The death protection component of Universal Life Insurance is always - Answers -✔✔
Annually Renewable Term
The policy owner of a Universal Life Policy may skip paying the premium and the policy
will not lapse as long as - Answers -✔✔ The policy contains sufficient cash value to
cover the cost of insurance
Which of the following policies would have an IRS required corridor or gap between the
cash value and the death benefit? - Answers -✔✔ Universal Life- Option A
The death benefit under the Universal Life Option B - Answers -✔✔ Gradually
increases each year by the amount that the cash value increases
What kind of policy allows withdrawals or partial surrenders? - Answers -✔✔ Universal
Life
Questions 100% Complete
Solutions New Update
Which will be included in a policy summary? - Answers -✔✔ Premium amounts and
surrender values
Why should the producer personally deliver the policy when the first premium has
already been paid? - Answers -✔✔ To help the insured understand all aspects of the
contract
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - Answers -✔✔ Conditional
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant - Answers -✔✔ With the policy
If an applicant for a life insurance policy is found to be a substandard risk, the insurance
company is most likely to - Answers -✔✔ Charge a higher premium
Which of the following best details the underwriting process for life insurance? -
Answers -✔✔ Selection, classification, and rating of risks
Upon policy delivery, the producer may be required to obtain any of the following
EXCEPT - Answers -✔✔ Signed waiver of premium
Which of the following is a risk classification used by underwriters for insurance? -
Answers -✔✔ Standard
Which of the following documents delivered to the policy owner includes information
about premium amounts, cash values, surrender values, and death benefits for specific
policy years? - Answers -✔✔ A policy summary
When both parties to a contract must perform certain duties and follow rules of conduct
to make the contract enforceable, the contract is - Answers -✔✔ Conditional
Representations are written or oral statements made by the applicant that are - Answers
-✔✔ Considered true to the best of the applicant's knowledge
,Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a - Answers -✔✔ Premium receipt
All of the following are duties and responsibilities of producers at the time of application
EXCEPT - Answers -✔✔ Change any incorrect statement on the application by
personally initialing next to the corrected statement (must be initialed by the applicant)
In insurance policies, the insured is not legally bound to any particular action in the
insurance contract, but the insurer is legally obligated to pay losses covered by the
policy. What contract element does this describe? - Answers -✔✔ Unilateral
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? - Answers -
✔✔ Consideration
Which of the following is TRUE regarding the premium in term policies? - Answers -✔✔
The premium is level
Which of the following terms best describe the coverage provided by term policies, as
compared to any other form of protection? - Answers -✔✔ Greatest
Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial
resources? - Answers -✔✔ Term
A Return of Premium term life policy is written as what type of term coverage? -
Answers -✔✔ Increasing
All of the following are true regarding a decreasing term policy EXCEPT - Answers -
✔✔ The payable premium amount steadily declines throughout the duration of the
contract
What does "level" refer to in level term insurance? - Answers -✔✔ Face amount
Which best describes annually renewable term insurance? - Answers -✔✔ It is level
term insurance
What characteristic makes whole life permanent protection? - Answers -✔✔ Coverage
until death or age 100
Which of the following types of policies will provide permanent protection? - Answers -
✔✔ Whole life
, A Straight Life policy has what type of premium? - Answers -✔✔ A level annual
premium for the life of the insured
Which statement is NOT true regarding a Straight Life Policy? - Answers -✔✔ It's
premium steadily decreases over time, in response to its growing cash value
Which of the following policies would be classified as a traditional level premium
contract? - Answers -✔✔ Straight Life
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age of 100
is called - Answers -✔✔ Single premium whole life
Your client wants both protection and savings from the insurance, and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client? -
Answers -✔✔ Limited pay whole life
Which statement is NOT true regarding a Straight Life policy? - Answers -✔✔ It's
premium steadily decreases over time, in response to its growing cash value
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answers -✔✔ For 20 years or until death,
whichever occurs first
An insured owns a life insurance policy. To be able to pay some of her medical bills, she
withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the
insurer charges a fee. What type of policy does the insured most likely have? - Answers
-✔✔ Universal life
The death protection component of Universal Life Insurance is always - Answers -✔✔
Annually Renewable Term
The policy owner of a Universal Life Policy may skip paying the premium and the policy
will not lapse as long as - Answers -✔✔ The policy contains sufficient cash value to
cover the cost of insurance
Which of the following policies would have an IRS required corridor or gap between the
cash value and the death benefit? - Answers -✔✔ Universal Life- Option A
The death benefit under the Universal Life Option B - Answers -✔✔ Gradually
increases each year by the amount that the cash value increases
What kind of policy allows withdrawals or partial surrenders? - Answers -✔✔ Universal
Life
