Primerica

1. An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe? a) Unilateral b) Conditional c) Personal d) Adhesion: Adhesion 2. An insurance policy that only requires a payment of premium at its incep- tion, provides insurance prot...

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12 pages

Written in 2022/2023

Grade A+

smartprof

Primerica - Life Insurance EXAM 70 QUESTIONS AND CORRECT ANSWERS 2023. 1. What is insurance?: Transfer of the possibility of loss (risk) to an insurance company. 2. What is a risk?: The uncertainty of financial loss 3. There are two types of loss: Pure and Speculative 4. Which type of loss is insurable?: Pure 5. Why is Pure loss insurable?: Loss must be financial and uncertain. No financial gain can occur. 6. What causes loss?: Peril; such as fire, accident or flood 7. What causes a pe...

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12 pages

Written in 2022/2023

Grade A+

lectdenis

401 K Plan - CORRECT ANS A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment - CORRECT ANS Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit - CORRECT ANS Policy provision that allows full or partial payment of the policy's death benefit...

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17 pages

Written in 2023/2024

Grade A+

claytondoc

1. If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be: Authorized 2. A participating insurance policy may do which of the following?: Pay dividends to the policy owner 3. An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most li...

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25 pages

Written in 2022/2023

Grade A+

smartprof

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: 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 pai...

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48 pages

Written in 2022/2023

Grade A+

smartprof

Primerica Life Insurance State Tests Compilation Bundle

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21 items

Classroom

The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the: a. Counties b. Federal Government c. Insurers in a state d. States correct answer: d. States The McCarran-Ferguson Act, passed by Congress in 1945, grants states the authority to regulate the business of insurance within their borders. The act provides that federal regulation of the insurance industry is appropriate only when the states d...

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30 pages

Written in 2022/2023

Grade A+

Classroom

401 k plan correct answer: A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment correct answer: Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit correct answer: Policy provision that allows full or partial payment of the ...

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22 pages

Written in 2022/2023

Grade A+

Classroom

Agent/Producer correct answer: A legal representative of an insurance company; the classification of -producer- usually includes agents and brokers; agents are the agents of the insurer. Applicant or proposed insured correct answer: a person applying for insurance Broker correct answer: an insurance producer not appointed by an insurer and is deemed to represent the client Insurance policy correct answer: a contract between policyowner (and/or insured) and an insurance company which...

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30 pages

Written in 2022/2023

Grade A+

Classroom

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be correct answer: Authorized A participating insurance policy may do which of the following? correct answer: Pay dividends to the policy owner An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of poli...

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47 pages

Written in 2022/2023

Grade A+

Classroom

Every licensee must indicate on which of the following documents his or her license number? a. Print advertisements b. Business Cards c. Written Price Quotations d. All of the above correct answer: D. All of the above 2. When any change in residence address occurs, every licensee and every applicant for a licens (Select the most correct response) a. Within 6 months after the move has taken place b. Within 6 months before the license is to expire c. 30 days before submitting a c...

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22 pages

Written in 2022/2023

Grade A+

Classroom

Stranger-oriented life insurance policies are in direct opposition to the principle of a. law of large numbers b. good faith c. indemnity d. insurable interest correct answer: d. insurable interest-STOLI purchaser doesn't know the insured, or have any interest in the insured's longevity, so it violates the principle of insurable interest Which is generally true regarding insureds who have earned preferred status? a. they keep a higher percentage of any interest earned on their policie...

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30 pages

Written in 2022/2023

Grade A+

Classroom

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called correct answer: Cost of living rider. What method is used to determine the taxable portion of each annuity payment? correct answer: The exclusion ratio The ratio of the total investment in that contract to the expected return is developed to determine the portion of the annuity payment that will be taxable and nontaxable. A se...

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7 pages

Written in 2022/2023

Grade A+

Classroom

What limits the amount that a policyowner may borrow from a whole life insurance policy? correct answer: Cash value What is NOT true about a joint and survivor annuity benefit option? correct answer: Payments stop after the first death among the annuitants. If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? correct answer: Fixed period Th...

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28 pages

Written in 2022/2023

Grade A+

Classroom

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe? a) Unilateral b) Conditional c) Personal d) Adhesion correct answer: Adhesion An insurance policy that only requires a payment of premium at its inception, provides insu...

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32 pages

Written in 2022/2023

Grade A+

Classroom

An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? correct answer: Guaranteed insurability option Which of the following best describes fixed-period settlement option? correct answer: Both the principal and interest will be liquidated over a selected pe...

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11 pages

Written in 2022/2023

Grade A+

Classroom

If the agent fails to obtain an applicant's signature on the application, the agent must: a) Sign the application, stating it was by the agent b) Send the application to the insurer with a note explaining the absence of the signature c) Return the application for a signature d) Sign the application for the applicant. correct answer: Answer: C All applications must have the appropriate authorized signature Under a 20-pay whole life policy, in order for the policy to pay the death benef...

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186 pages

Written in 2022/2023

Grade A+

Classroom

All of the following are true regarding a qualified annuity EXCEPT correct answer: At distribution, all amounts received by the employee are tax free. What type of insurance would be used for a Return of Premium rider? correct answer: Increasing Term Which of the following is the best reason to purchase life insurance rather than annuities? correct answer: To create an estate Every expressed warranty made at or before the execution of a policy must be correct answer: Contained in an...

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5 pages

Written in 2022/2023

Grade A+

Classroom

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? correct answer: Guaranteed Lifetime Withdrawal What describes a situation when poor risks are balanced with preferred risks, and average risks are in the middle? correct answer: Profitable distribution of exposures In which of the following instances would the premium be tax deductible? correct answer: Premiums paid by an employer on a $30,000 group term li...

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5 pages

Written in 2022/2023

Grade A+

Classroom

Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation correct answer: Be fined a sum of $1,000. What is the purpose of a conditional receipt? correct answer: It is intended to provide coverage on a date prior to the policy issue. If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has b...

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6 pages

Written in 2022/2023

Grade A+

Classroom