PRIMERICA PRACTICE TEST PART 1 EXAM PREP
STUDY GUIDE WITH SOLVED QUESTIONS
◉ Which of the following is true of a qualified plan
Answer: It has a tax benefit for both employer and employee.
◉ A producer must do all of the following when delivering a new
policy to the insured except
Answer: Disclose commissions earned from the sale of the policy.
◉ Under which non-forfeiture option does the company pay the
surrender value and have no further obligations to the policy
owner?
Answer: Cash surrender
◉ The president of a company is starting an annuity and decides
that his corporation will be the annuitant. Which of the following
statements is true?
Answer: The annuitant must be a natural person.
◉ The insured under a $100,000 life insurance policy with a triple
indemnity rider for accidental death was killed in a car accident. It
was determined that the accident was his fault. The triple indemnity
, rider in the policy specifies that the death must not be contributed
to by the insured in any manner. In this case, what will the policy
beneficiary receive?
Answer: $100,000
◉ If a life insurance policy has an irrevocable beneficiary
designation,
Answer: The beneficiary can only be changed with written
permission of the beneficiary
◉ If an insurer requires a medical examination of an applicant in
connection with the application for life insurance, who is
responsible for paying the cost of the examination?
Answer: insurer
◉ Which of the following when attached to a permanent life
insurance policy, allows the policy owner to customize the policy to
provide additional amount of temporary insurance on the insured or
allows amounts of temporary insurance to cover other family
members
Answer: Term rider
◉ Which of the following includes information regarding a person's
credit, character, reputation, and habits
Answer: Consumer report
STUDY GUIDE WITH SOLVED QUESTIONS
◉ Which of the following is true of a qualified plan
Answer: It has a tax benefit for both employer and employee.
◉ A producer must do all of the following when delivering a new
policy to the insured except
Answer: Disclose commissions earned from the sale of the policy.
◉ Under which non-forfeiture option does the company pay the
surrender value and have no further obligations to the policy
owner?
Answer: Cash surrender
◉ The president of a company is starting an annuity and decides
that his corporation will be the annuitant. Which of the following
statements is true?
Answer: The annuitant must be a natural person.
◉ The insured under a $100,000 life insurance policy with a triple
indemnity rider for accidental death was killed in a car accident. It
was determined that the accident was his fault. The triple indemnity
, rider in the policy specifies that the death must not be contributed
to by the insured in any manner. In this case, what will the policy
beneficiary receive?
Answer: $100,000
◉ If a life insurance policy has an irrevocable beneficiary
designation,
Answer: The beneficiary can only be changed with written
permission of the beneficiary
◉ If an insurer requires a medical examination of an applicant in
connection with the application for life insurance, who is
responsible for paying the cost of the examination?
Answer: insurer
◉ Which of the following when attached to a permanent life
insurance policy, allows the policy owner to customize the policy to
provide additional amount of temporary insurance on the insured or
allows amounts of temporary insurance to cover other family
members
Answer: Term rider
◉ Which of the following includes information regarding a person's
credit, character, reputation, and habits
Answer: Consumer report
