PRIMERICA EXAM (A+ GRADED)

What is insurance? correct answers Transfer of the possibility of loss (risk) to an insurance company. What is a risk? correct answers The uncertainty of financial loss There are two types of loss correct answers Pure and Speculative Which type of loss is insurable? correct answers Pure ...

Deferred Annuity correct answers An annuity in which the income payments begin sometime after one year from the date of red annuities can be funded with a single lump sum payment so it is referred to as a single premium differed annuities. Human life values approach correct answers Calculates an ...

The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) correct answers conditional receipt Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called co...

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

401k plan correct answers 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 answers Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. ...

Guaranteed insurability option correct answers 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 op...

Which law is the foundation of statistical prediction of loss upon which rates for insurance are calculated? A) Law of Group Evaluation B) Law of Large Numbers C) Law of Masses D) Law of Averages correct answers B) Law of Large Numbers A producer who fails to segregate premium monies from his...

The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) correct answers Conditional receipt. Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called c...