PRIMERICA LIFE INSURANCE EXAM
1. 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
b. reciprocal
c. nonprofit service organization
d. stock
Answer A. mutual
funds not paid out after paying claims and other operating costs are returned to the policy owners in the form of a
dividend. if all funds are paid out, no dividends are paid
2. Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and jogs
,for 45 minutes each morning. The insured has also eliminated most fatty foods
from his diet. Which method of dealing with risk does this scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
Answer B. reduction
the insured's change in lifestyle and habits would likely reduce the chances of health problems
3. In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial premium
c. the agent hands the policy to the policyholder
,d. an agent explains a policy to a potential applicant
Answer A. an applicant submits an application to the insurer
in insurance, the otter is usually made by the applicant in the form of an application. acceptance takes place when an
insurer's underwriter approves the application and issues a policy
, 4. the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards
Answer A. perils
perils are the causes of loss insured against in an insurance policy
5. what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions
1. 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
b. reciprocal
c. nonprofit service organization
d. stock
Answer A. mutual
funds not paid out after paying claims and other operating costs are returned to the policy owners in the form of a
dividend. if all funds are paid out, no dividends are paid
2. Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and jogs
,for 45 minutes each morning. The insured has also eliminated most fatty foods
from his diet. Which method of dealing with risk does this scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
Answer B. reduction
the insured's change in lifestyle and habits would likely reduce the chances of health problems
3. In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial premium
c. the agent hands the policy to the policyholder
,d. an agent explains a policy to a potential applicant
Answer A. an applicant submits an application to the insurer
in insurance, the otter is usually made by the applicant in the form of an application. acceptance takes place when an
insurer's underwriter approves the application and issues a policy
, 4. the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards
Answer A. perils
perils are the causes of loss insured against in an insurance policy
5. what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions
