1|Page
Primerica life insurance practice Exam ||Verified
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what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions - Answer-A. agents contract with the
principal
the principal grants authority to an agent through the
agent's contract
which of the following best describes an insurance
company that has been formed under the laws of this
state?
a. domestic
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b. sovereign
c. alien
d. foreign - Answer-A. domestic
a company is domestic when doing business within the
state in which it is incorporated
which of the following factors is NOT considered by an
underwriter when determining the premium rates for an
individual seeking insurance?
a. medical history
b. sex
c. age
d. race - Answer-D. race
age, medical history, and sex provide sound statistical
date for determining the probability of loss. Race, religion,
sexual orientation, etc. are the factors that cannot be used
because there is not sound statistical data to show that
they effect the probability of loss; therefore, they are
considered to be discriminatory
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in insurance transactions, fiduciary responsibility means
a. handling insurer funds in a trust capacity
b. maintaining good credit record
c. being liable with respect to payment of claims
d. commingling premiums with agents personal funds -
Answer-A. handling insurer funds in a trust capacity
an agents fiduciary responsibility includes handling insurer
funds in a trust capacity
the authority granted to an agent through the agent's
contract is referred to as
a. absolute authority
b. express authority
c. apparent authority
d. implied authority - Answer-B. express authority
, 4|Page
express powers are written into the contract between the
insurer and the agent
insurance policies are not drawn up though negotiations,
and an insured has little to say about its provisions. what
contract characteristic does this describe?
a. unilateral
b. conditional
c. personal
d. adhesion - Answer-D. adhesion
a contract of adhesion is prepared by only the insurer; the
insured's only option is to accept or reject the policy as its
written
An insured purchased an insurance policy 5 years ago.
Last year, she received a dividend check from the
insurance company that was not taxable. This year, she
did not receive a check from the insurer. From what type
of insurer did the insured purchase the policy?
a. mutual
Primerica life insurance practice Exam ||Verified
Exam!!|| Most Recent Exam Actual Complete Real
Exam Questions And Correct Answers (Verified
Answers) Already Graded A+ | Guaranteed Success!!
Newest Exam!!!
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions - Answer-A. agents contract with the
principal
the principal grants authority to an agent through the
agent's contract
which of the following best describes an insurance
company that has been formed under the laws of this
state?
a. domestic
,2|Page
b. sovereign
c. alien
d. foreign - Answer-A. domestic
a company is domestic when doing business within the
state in which it is incorporated
which of the following factors is NOT considered by an
underwriter when determining the premium rates for an
individual seeking insurance?
a. medical history
b. sex
c. age
d. race - Answer-D. race
age, medical history, and sex provide sound statistical
date for determining the probability of loss. Race, religion,
sexual orientation, etc. are the factors that cannot be used
because there is not sound statistical data to show that
they effect the probability of loss; therefore, they are
considered to be discriminatory
,3|Page
in insurance transactions, fiduciary responsibility means
a. handling insurer funds in a trust capacity
b. maintaining good credit record
c. being liable with respect to payment of claims
d. commingling premiums with agents personal funds -
Answer-A. handling insurer funds in a trust capacity
an agents fiduciary responsibility includes handling insurer
funds in a trust capacity
the authority granted to an agent through the agent's
contract is referred to as
a. absolute authority
b. express authority
c. apparent authority
d. implied authority - Answer-B. express authority
, 4|Page
express powers are written into the contract between the
insurer and the agent
insurance policies are not drawn up though negotiations,
and an insured has little to say about its provisions. what
contract characteristic does this describe?
a. unilateral
b. conditional
c. personal
d. adhesion - Answer-D. adhesion
a contract of adhesion is prepared by only the insurer; the
insured's only option is to accept or reject the policy as its
written
An insured purchased an insurance policy 5 years ago.
Last year, she received a dividend check from the
insurance company that was not taxable. This year, she
did not receive a check from the insurer. From what type
of insurer did the insured purchase the policy?
a. mutual
