PRIMERICA EXAM TEST 4 ACTUAL TEST
QUESTIONS AND SOLVED ANSWERS
◉ When an insured makes truthful statements on the application for
insurance and pays the required premium, it is known as which of
the following?
a. legal purpose
b. contract of adhesion
c. acceptance
d. consideration.
Answer: D. consideration
consideration is something of value that each party gives to the
other. The consideration on the part of the insured is the payment of
premium and the representations made in the application
◉ which of the following would qualify as a competent party in an
insurance contract?
a. the applicant is intoxicated at the time of application
b. the applicant is 12 year old student
,c. the applicant is under the influence of a mind-impairing
medication at the time of application
d. the applicant has a prior felony conviction.
Answer: D. the applicant has a prior felony conviction
when an insurer and insured enter into a contract, both parties must
be legal of age and mentally competent. It is legal for a person
convicted of a felony to buy an insurance contract. An intoxicated
person, however, may not be mentally competent, a 12 year old
student is considered to be underage in most states and a person
under mind-impairing medication most likely would not be mentally
competent
◉ 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?
a. representation
b. adhesion
c. consideration
d. good health.
Answer: C. consideration
,the binding force in any contract is consideration. consideration on
the part of the insureds the payment of premiums and the health
representations made in the application. Consideration on the part
of the insurer is the promise to pay in the even of loss
◉ which of the following is a primary source of information used for
insurance underwriting?
a. application
b. applicant interviews
c. medical records.
d. private investigations.
Answer: A. application
the application contains most of the information used for
underwriting purposes. this is why its completeness and accurarcy
are so critical
◉ which of the following is the best reason to purchase life
insurance rather than annuities?
a. to liquidate a sum of money over a period of year
b. to create regular income payments
c. to liquidate a sum money over a lifetime
, d. to create an estate.
Answer: D. to create an estate
with insurance, the death creates an immediate estate should the
insured die
◉ a producer is helping a married couple determine the financial
needs of their children in the event of one or both should die
prematurely. This is a personal use of life insurance known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning.
Answer: C. survivorship protection
life insurance can provide the funds necessary for the survivors of
the insured to be able to maintain their lifestyle in the event of the
insured's death. This is known as survivor protection
◉ a producer agent must do all of the following when delivering a
new policy to the insured EXCEPT
QUESTIONS AND SOLVED ANSWERS
◉ When an insured makes truthful statements on the application for
insurance and pays the required premium, it is known as which of
the following?
a. legal purpose
b. contract of adhesion
c. acceptance
d. consideration.
Answer: D. consideration
consideration is something of value that each party gives to the
other. The consideration on the part of the insured is the payment of
premium and the representations made in the application
◉ which of the following would qualify as a competent party in an
insurance contract?
a. the applicant is intoxicated at the time of application
b. the applicant is 12 year old student
,c. the applicant is under the influence of a mind-impairing
medication at the time of application
d. the applicant has a prior felony conviction.
Answer: D. the applicant has a prior felony conviction
when an insurer and insured enter into a contract, both parties must
be legal of age and mentally competent. It is legal for a person
convicted of a felony to buy an insurance contract. An intoxicated
person, however, may not be mentally competent, a 12 year old
student is considered to be underage in most states and a person
under mind-impairing medication most likely would not be mentally
competent
◉ 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?
a. representation
b. adhesion
c. consideration
d. good health.
Answer: C. consideration
,the binding force in any contract is consideration. consideration on
the part of the insureds the payment of premiums and the health
representations made in the application. Consideration on the part
of the insurer is the promise to pay in the even of loss
◉ which of the following is a primary source of information used for
insurance underwriting?
a. application
b. applicant interviews
c. medical records.
d. private investigations.
Answer: A. application
the application contains most of the information used for
underwriting purposes. this is why its completeness and accurarcy
are so critical
◉ which of the following is the best reason to purchase life
insurance rather than annuities?
a. to liquidate a sum of money over a period of year
b. to create regular income payments
c. to liquidate a sum money over a lifetime
, d. to create an estate.
Answer: D. to create an estate
with insurance, the death creates an immediate estate should the
insured die
◉ a producer is helping a married couple determine the financial
needs of their children in the event of one or both should die
prematurely. This is a personal use of life insurance known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning.
Answer: C. survivorship protection
life insurance can provide the funds necessary for the survivors of
the insured to be able to maintain their lifestyle in the event of the
insured's death. This is known as survivor protection
◉ a producer agent must do all of the following when delivering a
new policy to the insured EXCEPT
