Primerica Practice Exam Test A updated
solutions 100% correct.
Primerica Practice Exam Test A updated
solutions 100% correct.
1. An annuity that is purchased with a lump sum premium and whose benefits begin
after 12 months is called a:
A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Level premium variable annuity.
D. Flexible premium fixed annuity. - Answer Single premium deferred annuity
2. A technique used to determine the amount of life insurance needed by focusing on
the projected earning potential of an insured is called the:
A. Needs approach.
B. Future income option.
C. Human life value approach.
D. Life income approach. - Answer Human life value approach
3. When replacing a policy the producer must present the applicant with a Notice
Regarding Replacement of Life Insurance:
A. At the policy delivery date.
B. 7 days after the initial meeting.
C. On the date the underwriter approves the policy.
D. At the time of taking the application. - Answer At the time of taking the application
4. The possibility of a financial loss incurred by a life insurance company for the
premature death of an insured is known as a:
A. Peril.
B. Risk.
C. Hazard.
D. Loss. - Answer Risk
5. The Medical Information Bureau (MIB) is a nonprofit trade association that maintains:
A. Motorist information on applicants for life and health insurance.
B. Medical information on applicants for life and health insurance,
C. Maternity information on female applicants for life and health insurance.
D. Classifications of risk for previous policies. - Answer medical information on
applicants for life and health insurance
6. A person who signs a fraudulent claim form may be found guilty of:
A. Rebating.
B. Perjury.
C. Misdemeanor.
, Primerica Practice Exam Test A updated
solutions 100% correct.
D. Misrepresentation. - Answer perjury
7. Which policy is a combination of annual renewable term insurance and interest-
sensitive cash value?
A. Universal life
B. Adjustable life
C. Renewable term life
D. Interest-sensitive whole life - Answer universal life
8. The right to a full refund of premiums for insureds age 60 or older is:
A. 10 days.
B. 14 days.
C. 20 days.
D. 30 days. - Answer 30 days
9. The premium modes can be best described as the:
A. Amount of premium payment.
B. Method of premium payment.
C. Frequency of premium payment.
D. Calculation of premium payment. - Answer Frequency of premium payment
10. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - Answer Concealment
11. A tax-sheltered annuity (TSA) is a qualified plan available for:
A. Employees of corporations.
B. Self-employed persons.
C. Nonprofit organizations.
D. Group life insurance. - Answer nonprofit organizations
12. The intent of replacement regulations is to protect the:
A. Producer.
B. Agency.
C. Policyowner.
D. Insurance company. - Answer Policy owner
13. Which provision allows a lapsed policy to be put back in force?
A. Replacement
B. Incontestability
C. Grace period
D. Reinstatement - Answer Reinstatement
solutions 100% correct.
Primerica Practice Exam Test A updated
solutions 100% correct.
1. An annuity that is purchased with a lump sum premium and whose benefits begin
after 12 months is called a:
A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Level premium variable annuity.
D. Flexible premium fixed annuity. - Answer Single premium deferred annuity
2. A technique used to determine the amount of life insurance needed by focusing on
the projected earning potential of an insured is called the:
A. Needs approach.
B. Future income option.
C. Human life value approach.
D. Life income approach. - Answer Human life value approach
3. When replacing a policy the producer must present the applicant with a Notice
Regarding Replacement of Life Insurance:
A. At the policy delivery date.
B. 7 days after the initial meeting.
C. On the date the underwriter approves the policy.
D. At the time of taking the application. - Answer At the time of taking the application
4. The possibility of a financial loss incurred by a life insurance company for the
premature death of an insured is known as a:
A. Peril.
B. Risk.
C. Hazard.
D. Loss. - Answer Risk
5. The Medical Information Bureau (MIB) is a nonprofit trade association that maintains:
A. Motorist information on applicants for life and health insurance.
B. Medical information on applicants for life and health insurance,
C. Maternity information on female applicants for life and health insurance.
D. Classifications of risk for previous policies. - Answer medical information on
applicants for life and health insurance
6. A person who signs a fraudulent claim form may be found guilty of:
A. Rebating.
B. Perjury.
C. Misdemeanor.
, Primerica Practice Exam Test A updated
solutions 100% correct.
D. Misrepresentation. - Answer perjury
7. Which policy is a combination of annual renewable term insurance and interest-
sensitive cash value?
A. Universal life
B. Adjustable life
C. Renewable term life
D. Interest-sensitive whole life - Answer universal life
8. The right to a full refund of premiums for insureds age 60 or older is:
A. 10 days.
B. 14 days.
C. 20 days.
D. 30 days. - Answer 30 days
9. The premium modes can be best described as the:
A. Amount of premium payment.
B. Method of premium payment.
C. Frequency of premium payment.
D. Calculation of premium payment. - Answer Frequency of premium payment
10. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - Answer Concealment
11. A tax-sheltered annuity (TSA) is a qualified plan available for:
A. Employees of corporations.
B. Self-employed persons.
C. Nonprofit organizations.
D. Group life insurance. - Answer nonprofit organizations
12. The intent of replacement regulations is to protect the:
A. Producer.
B. Agency.
C. Policyowner.
D. Insurance company. - Answer Policy owner
13. Which provision allows a lapsed policy to be put back in force?
A. Replacement
B. Incontestability
C. Grace period
D. Reinstatement - Answer Reinstatement
