PRIMERICA FINAL REVIEW QUESTIONS
VERIFIED COMPLETE ANSWERS 100
PERCENT CORRECT
◉ which of the following is true about the premium on the
children's rider in a life insurance policy?
a. it decreases when an adopted child is added to the policy
b. it remains the same no matter how many children are added to
the policy
c. it decreases when the oldest child remains the age of 21
d. it increases when a newborn baby is added to the policy
Answer: B. it remains the same no matter how many children are
added to the policy
the premium does not change on the inclusion of additional
children, it is based on an average number of children
◉ the automatic premium loan provision is activated at the end of
the
a. grace period
b. free-look period
c. elimination period
,d. policy period
Answer: a. grace period
provided there is sufficient cash value in the policy, this provision
triggers a loan at the end of the grace period to keep a policy in
force
◉ which of the following explains the policyowner's right to
change beneficiaries, choose options, and receive proceeds of a
policy?
a. the Entire Contract Provision
b. The Consideration Clause
c. Agreement Rights
d. Owner's Rights
Answer: D. owner's rights
policy owners can learn about their ownership rights by referring
to the policy
◉ The owner of a life insurance policy wishes to name two
beneficiaries for the policy proceeds. What will the soliciting
insurance producer say?
a. the proceeds will be split evenly between the 2 beneficiaries
,b. the policyowner can specify the way the proceeds are split in
the policy
c. the way proceeds are split between beneficiaries is decided by
which type of policy is chosen
D. life insurance policies may have only one beneficiary
Answer: B. the policyowner can specifiy the way the proceeds are
split in the policy
the owner of a life policy may name any individual as a beneficiary
for the policy proceeds. The owner may name more than one
individual, in which case the individual beneficiaries will split the
benefit by the percentage specified in the policy
◉ An insured has had a life insurance policy that he purchased 3
years ago when he was 40 years old. He is killed in an automobile
accident and it is discovered that he is actually 45 years old, and
not 43, as stated on the application. What will the company do?
a. pay nothing, there was a misrepresentation on the application
b. pay the full death benefit and refund excess premium
c. pay a reduced death benefit
d. pay the full death benefit
Answer: C. pay a reduced death benefit
the incontestability clause prevents an insurer from denying a
claim due to statements in an application after the policy has been
, in force for 2 years. However, is does not apply to statements
relating to age, sex, and identity
◉ after a back injury, an insured is disabled for a year. His
insurance policy carries a disability income death benefit rider.
Which of the following benefits will he receive?
a. monthly premium waiver and monthly income
b. percentage of medical costs paid by the insurer
c. payments for life
d. yearly premium waiver and income
Answer: A.monthly premium waiver and monthly income
the disability income death benefit rider waives the policy
premiums, just like the Waiver of Premium rider. Unlike the
Waiver Premium rider, it also allows the insured to receive a
weekly or monthly income during the disability period
◉ The provision which states that both the policy and a copy of
the application form the contract between the policyowner and
the insurer is called the
a. complete contract
b. entire contract
c. total contract
VERIFIED COMPLETE ANSWERS 100
PERCENT CORRECT
◉ which of the following is true about the premium on the
children's rider in a life insurance policy?
a. it decreases when an adopted child is added to the policy
b. it remains the same no matter how many children are added to
the policy
c. it decreases when the oldest child remains the age of 21
d. it increases when a newborn baby is added to the policy
Answer: B. it remains the same no matter how many children are
added to the policy
the premium does not change on the inclusion of additional
children, it is based on an average number of children
◉ the automatic premium loan provision is activated at the end of
the
a. grace period
b. free-look period
c. elimination period
,d. policy period
Answer: a. grace period
provided there is sufficient cash value in the policy, this provision
triggers a loan at the end of the grace period to keep a policy in
force
◉ which of the following explains the policyowner's right to
change beneficiaries, choose options, and receive proceeds of a
policy?
a. the Entire Contract Provision
b. The Consideration Clause
c. Agreement Rights
d. Owner's Rights
Answer: D. owner's rights
policy owners can learn about their ownership rights by referring
to the policy
◉ The owner of a life insurance policy wishes to name two
beneficiaries for the policy proceeds. What will the soliciting
insurance producer say?
a. the proceeds will be split evenly between the 2 beneficiaries
,b. the policyowner can specify the way the proceeds are split in
the policy
c. the way proceeds are split between beneficiaries is decided by
which type of policy is chosen
D. life insurance policies may have only one beneficiary
Answer: B. the policyowner can specifiy the way the proceeds are
split in the policy
the owner of a life policy may name any individual as a beneficiary
for the policy proceeds. The owner may name more than one
individual, in which case the individual beneficiaries will split the
benefit by the percentage specified in the policy
◉ An insured has had a life insurance policy that he purchased 3
years ago when he was 40 years old. He is killed in an automobile
accident and it is discovered that he is actually 45 years old, and
not 43, as stated on the application. What will the company do?
a. pay nothing, there was a misrepresentation on the application
b. pay the full death benefit and refund excess premium
c. pay a reduced death benefit
d. pay the full death benefit
Answer: C. pay a reduced death benefit
the incontestability clause prevents an insurer from denying a
claim due to statements in an application after the policy has been
, in force for 2 years. However, is does not apply to statements
relating to age, sex, and identity
◉ after a back injury, an insured is disabled for a year. His
insurance policy carries a disability income death benefit rider.
Which of the following benefits will he receive?
a. monthly premium waiver and monthly income
b. percentage of medical costs paid by the insurer
c. payments for life
d. yearly premium waiver and income
Answer: A.monthly premium waiver and monthly income
the disability income death benefit rider waives the policy
premiums, just like the Waiver of Premium rider. Unlike the
Waiver Premium rider, it also allows the insured to receive a
weekly or monthly income during the disability period
◉ The provision which states that both the policy and a copy of
the application form the contract between the policyowner and
the insurer is called the
a. complete contract
b. entire contract
c. total contract
