PRIMERICA UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE
◉ Statements in the application for insurance that are believed to
be true to the best of the applicant's knowledge are called
Answer: representations
◉ An annuity is considered fixed when it does all of the following
EXCEPT
Answer: provides the annuitant with an interest rate that is the
lesser of the guaranteed or current rate
◉ The most common type of whole life insurance where
premiums are payable over the whole life of the insured to age
100 is called
Answer: continuous premium (straight) life
◉ The policy and a copy of the application, along with any riders
and amendments, is called the
Answer: entire contract
◉ Money borrowed from the policy's cash value is
, Answer: not taxable
◉ Which of the following annuity products requires an agent to
hold a securities license?
Answer: variable annuities
◉ Which type of annuity settlement stops when the annuitant
dies?
Answer: life income annuity
◉ At what age can a participant receive distributions from a
qualified plan without incurring a 10% penalty?
Answer: 59.5
◉ Which settlement option guarantees an income for 2 or more
recipients for as long as they live
Answer: joint and survivor
◉ Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the
surviving partner to use the death benefit to purchase the
deceased's business interests?
Answer: buy-sell agreement
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE
◉ Statements in the application for insurance that are believed to
be true to the best of the applicant's knowledge are called
Answer: representations
◉ An annuity is considered fixed when it does all of the following
EXCEPT
Answer: provides the annuitant with an interest rate that is the
lesser of the guaranteed or current rate
◉ The most common type of whole life insurance where
premiums are payable over the whole life of the insured to age
100 is called
Answer: continuous premium (straight) life
◉ The policy and a copy of the application, along with any riders
and amendments, is called the
Answer: entire contract
◉ Money borrowed from the policy's cash value is
, Answer: not taxable
◉ Which of the following annuity products requires an agent to
hold a securities license?
Answer: variable annuities
◉ Which type of annuity settlement stops when the annuitant
dies?
Answer: life income annuity
◉ At what age can a participant receive distributions from a
qualified plan without incurring a 10% penalty?
Answer: 59.5
◉ Which settlement option guarantees an income for 2 or more
recipients for as long as they live
Answer: joint and survivor
◉ Two business partners own life insurance on each other. If one
partner dies, which of the following contracts will allow the
surviving partner to use the death benefit to purchase the
deceased's business interests?
Answer: buy-sell agreement
