Exam (elaborations)
Primerica Practice Exam 2 Questions with Accurate Answers
- Course
- Institution
Primerica Practice Exam 2
[Show more]
Content preview
Primerica Practice Exam 2Which statement is FALSE concerning insurance company regulations?
A.) Insurers may not advertise their membership in the Guarantee Association
B.) An insurer suffering from an impairment of their minimum required paid-in capital is
labeled solvent
C.) The commissioner may begin conservation proceedings against companies who
cannot meet solvency regulations
D.) An insurer may be liquidated of conservation proves to be futile - answer An insurer
suffering from an impairment of their minimum required paid-in capital is labeled solvent
Which of the following transactions would most likely to DECLINED due to lack of
insurable interest?
A.) A parent buys insurance on their adult child
B.) An employee insures their employer in the fear of losing their job
C.) A spouse insures the other spouse
D.) A local hospital insures its chief of surgery - answer An employee insures their
employer in the fear of losing their job
All of the following statements about policy provisions are true, except:
A.) Death during the grace period results in a full death benefit being paid
B.) Suicide during the policys first two years results in policy recission
C.) The insuring clause states the insurers promise to pay a death benefit if premiums
are paid, and proof of death is received
D.) The automatic premium loan can keep a policy in force when payments are missed
and there is sufficient cash value to pay the premium - answerDeath during the grace
period results in a full death benefit being paid
A client has a history of DUIs. To his insurer, they see him as a ________ hazard.
A.) Physical
B.) Moral
C.) Morale
D.) Legal - answerMorale
Which statement about reinstatement is FALSE?
A.) Reinstatement usually requires an application with underwriting questions, but may
not require any physical exams
, B.) Reinstatement requires payment of past due premium plus interest
C.) A reinstated policys premium is based upon the insureds original pace
D.) The reinstated policy is incontestable if the first time it was in force it already passed
the two year mark - answerThe reinstated policy is incontestable if the first time it was in
force it already passed the two year mark
The person who will receive the benefit of an annuity and whose life the payout is based
upon when the contract is purchased is the:
A.) Policyowner
B.) annuitant
C.) beneficiary
D.) insured - answerannuitant
The Roth and Traditional IRAs have some similarities. Which of the following is not
true?
A.) both have penalties for early withdrawal
B.) Both grow tax deferred
C.) Both are tax deductible to the investor
D.) Both allow the investor to invest for themselves and their non-income earning
spouse - answerBoth are tax deductible to the investor
A policy pays the face amount if the insured dies before a specified date, or lives to that
specified date. This best describes:
A.) term insurance
B.) social security
C.) an endowment policy
D.) an annuity - answerC.) an endowment policy
All of the following statements about life insurance policy illustrations and the senior
market are correct, except:
A.) guaranteed elements must be emphasized in bold print
B.) to be understandable, policy illustrations must follow certain formats so the insured
can make informed buying decisions
C.) Illustrations must note that they are only an illustration
D.) The illustration will note the both guaranteed and non-guaranteed elements will
remain unchanged for the years illustrated - answerD.) The illustration will note the both
guaranteed and non-guaranteed elements will remain unchanged for the years
illustrated
All of the following statements about agents are true, except:
A.) independent agents can be appointed by multiple insurers
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jw638729. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now