Primerica Life Insurance State Tests Compilation Bundle

Primerica Practice Test Part 1 QUESTIONS WITH COMPLETE SOLUTIONS 2023

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. nonp...

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. correct answer: Single premium deferred ...

Risk correct answer: uncertainty of a financial loss; 2 types Two typed of risks correct answer: Pure (Insurable) and speculative (uninsurable) Benefits of purchasing insurance? correct answer: You get to transfer financial risk left after passing to insurance company Law of large number...

A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard? correct answer: Morale All of the following are beneficiary designations EXCEPT correct answer: Specified. An insurer's liability shall be limited to correc...

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...

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? co...

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...

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 applica...

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...

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 featu...

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...

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: T...

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 i...