Primerica Practice Exam Version A& B
2024-2025 Edition. All Questions &
Correct Verified Answers. Already
Graded A+
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. - ANSSingle 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. - ANSHuman 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. - ANSAt 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. - ANSRisk
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. - ANSmedical 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.
D. Misrepresentation. - ANSperjury
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 - ANSuniversal 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. - ANS30 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. - ANSFrequency of premium payment
10. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - ANSConcealment
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. - ANSnonprofit organizations
12. The intent of replacement regulations is to protect the:
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 wilfredmburuUS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
