Exam (elaborations) Life Insurance (Primerica) Chapter 1 Exam Questions with Verified Answers Exam (elaborations) Life Insurance Licensing Test, Primerica Exam Questions with Correct Answers Exam (elaborations) Life insurance practice exam Primerica questions with complete solutions Exam (el...
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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 - ANSWER-d. insurable interest-STOLI purchaser doesn't know the insured, or have any interest in the insured's longevity, so it violat...
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Add to cartStranger-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 - ANSWER-d. insurable interest-STOLI purchaser doesn't know the insured, or have any interest in the insured's longevity, so it violat...
Buyer's Guide - ANSWER-Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process? Respond to the consumers complaint. - ANSWER-Under the fair credit reporting act, if the consumer to chal...
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Add to cartBuyer's Guide - ANSWER-Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process? Respond to the consumers complaint. - ANSWER-Under the fair credit reporting act, if the consumer to chal...
agent - ANSWER-legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer insured - ANSWER-the person covered by the insurance policy; this person may or may not be the policyowner broker - ANSWER-an in...
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Add to cartagent - ANSWER-legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer insured - ANSWER-the person covered by the insurance policy; this person may or may not be the policyowner broker - ANSWER-an in...
The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - ANSWER-conditional receipt Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - ANSWER-...
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Add to cartThe receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - ANSWER-conditional receipt Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - ANSWER-...
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. - ANSWER-Single premium deferred annuity ...
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Add to cart1. 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. - ANSWER-Single premium deferred annuity ...
the purpose of laws regarding the replacement of life and annuity contracts includes all of the following except - ANSWER-to protect the interests of life insurance and their agents all of the following would fall under the category of an adverse underwriting decision except - ANSWER-failure of t...
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Add to cartthe purpose of laws regarding the replacement of life and annuity contracts includes all of the following except - ANSWER-to protect the interests of life insurance and their agents all of the following would fall under the category of an adverse underwriting decision except - ANSWER-failure of t...
What limits the amount that a policyowner may borrow from a whole life insurance policy? - ANSWER-Cash value What is NOT true about a joint and survivor annuity benefit option? - ANSWER-Payments stop after the first death among the annuitants. If a beneficiary wants a guarantee that benefits p...
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Add to cartWhat limits the amount that a policyowner may borrow from a whole life insurance policy? - ANSWER-Cash value What is NOT true about a joint and survivor annuity benefit option? - ANSWER-Payments stop after the first death among the annuitants. If a beneficiary wants a guarantee that benefits p...
Which risk classification is representative of the majority of people in a certain age group and with similar lifestyles? 1)Declined 2)Preferred 3)Standard 4)Substandard - ANSWER-Standard A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount of premium paid ...
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Add to cartWhich risk classification is representative of the majority of people in a certain age group and with similar lifestyles? 1)Declined 2)Preferred 3)Standard 4)Substandard - ANSWER-Standard A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount of premium paid ...
Deferred Annuity -ANSWER- An annuity in which the income payments begin sometime after one year from the date of purchase. deferred 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 -ANSWER- Calculates an...
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Add to cartDeferred Annuity -ANSWER- An annuity in which the income payments begin sometime after one year from the date of purchase. deferred 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 -ANSWER- Calculates an...
In an insured's neighborhood, individuals are required to pay the fire department if called to their premises. This insured has a homeowner policy. How much will the policy pay for these fire department service charges? - ANSWER-up to $500 When applying for an individual life insurance policy, a...
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Add to cartIn an insured's neighborhood, individuals are required to pay the fire department if called to their premises. This insured has a homeowner policy. How much will the policy pay for these fire department service charges? - ANSWER-up to $500 When applying for an individual life insurance policy, a...
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 - ANSWER-B) Law of Large Numbers A producer who fails to segregate premium monies from his own pe...
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Add to cartWhich 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 - ANSWER-B) Law of Large Numbers A producer who fails to segregate premium monies from his own pe...
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 - ANSWER-B) Law of Large Numbers A producer who fails to segregate premium monies from his own pe...
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Add to cartWhich 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 - ANSWER-B) Law of Large Numbers A producer who fails to segregate premium monies from his own pe...
The paid-up addition option uses the dividend - ANSWER-To purchase a smaller amount of the same type of insurance as the original policy. An applicant for insurance is requesting more information from her agent about a claim that is currently being settled. Within what time period must the agent ...
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Add to cartThe paid-up addition option uses the dividend - ANSWER-To purchase a smaller amount of the same type of insurance as the original policy. An applicant for insurance is requesting more information from her agent about a claim that is currently being settled. Within what time period must the agent ...
Risk - ANSWER-uncertainty of a financial loss; 2 types Two typed of risks - ANSWER-Pure (Insurable) and speculative (uninsurable) Benefits of purchasing insurance? - ANSWER-You get to transfer financial risk left after passing to insurance company Law of large numbers - ANSWER-the larger th...
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Add to cartRisk - ANSWER-uncertainty of a financial loss; 2 types Two typed of risks - ANSWER-Pure (Insurable) and speculative (uninsurable) Benefits of purchasing insurance? - ANSWER-You get to transfer financial risk left after passing to insurance company Law of large numbers - ANSWER-the larger th...
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...
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Add to cartAn 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...
In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to A) The insured's spouse B) The policyowner C) The insurance company D) The contingent beneficiary - ANSWER-The contingent beneficiary An insured ...
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Add to cartIn a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to A) The insured's spouse B) The policyowner C) The insurance company D) The contingent beneficiary - ANSWER-The contingent beneficiary An insured ...
Policy Owner - ANSWER-Payer of Premium Insurance Company - ANSWER-Insurer Beneficiary - ANSWER-Insured Insurable Interest - ANSWER-Blood and Money at the time of application Offer and Acceptance - ANSWER-Offer - Application Acceptance - Issued Policy Consideration - ANSWER-Something ...
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Add to cartPolicy Owner - ANSWER-Payer of Premium Insurance Company - ANSWER-Insurer Beneficiary - ANSWER-Insured Insurable Interest - ANSWER-Blood and Money at the time of application Offer and Acceptance - ANSWER-Offer - Application Acceptance - Issued Policy Consideration - ANSWER-Something ...
Underwriting - ANSWER-reviewing, selecting, and/or rejecting applications for insurance Field Underwriting - ANSWER-agent meets with the proposed insured room complete the application Application - ANSWER-the basic source of underwriting information; it has three parts: 1: general information,...
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Add to cartUnderwriting - ANSWER-reviewing, selecting, and/or rejecting applications for insurance Field Underwriting - ANSWER-agent meets with the proposed insured room complete the application Application - ANSWER-the basic source of underwriting information; it has three parts: 1: general information,...
Gross annual premium - ANSWER-Net premium plus expenses Liquidity - ANSWER-Cash values can be borrowed at any time Company underwriters allowed to discriminate? - ANSWER-Yes, not unfairly The owner - ANSWER-In a life settlement contract, the life settlement broker represents Industrial l...
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Add to cartGross annual premium - ANSWER-Net premium plus expenses Liquidity - ANSWER-Cash values can be borrowed at any time Company underwriters allowed to discriminate? - ANSWER-Yes, not unfairly The owner - ANSWER-In a life settlement contract, the life settlement broker represents Industrial l...
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...
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Add to cartIf 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...
Which of the following is NOT a personal use of life insurance? A. An individual buys insurance to help the family pay off the mortgage in case of premature death B. An individual buys insurance to fund a buy-sell agreement C. An individual buys insurance to provide future income to a surviving s...
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Add to cartWhich of the following is NOT a personal use of life insurance? A. An individual buys insurance to help the family pay off the mortgage in case of premature death B. An individual buys insurance to fund a buy-sell agreement C. An individual buys insurance to provide future income to a surviving s...
Guaranteeing future dividends is considered to be an unfair or deceptive act known as - ANSWER-Twisting An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Th...
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Add to cartGuaranteeing future dividends is considered to be an unfair or deceptive act known as - ANSWER-Twisting An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Th...
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be - ANSWER-Authorized A participating insurance policy may do which of the following? - ANSWER-Pay dividends to the policy owner An insured owns a life insurance poli...
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Add to cartIf an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be - ANSWER-Authorized A participating insurance policy may do which of the following? - ANSWER-Pay dividends to the policy owner An insured owns a life insurance poli...
d)A provision that allows the effective date of the policy to be backdated up to 8 months in order to effect a lower premium rate for the insured A life insurance policy may be backdated up to 6 months in order to effect a lower premium rate for the insured. - ANSWER-2. Which of the following provi...
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Add to cartd)A provision that allows the effective date of the policy to be backdated up to 8 months in order to effect a lower premium rate for the insured A life insurance policy may be backdated up to 6 months in order to effect a lower premium rate for the insured. - ANSWER-2. Which of the following provi...
What happen to the cash value when a whole life insurance policy matures? - ANSWER-Cash value is paid to the policy owner, what is the major difference between the most common types of whole life policies: straight life, limited payment and single premium? - ANSWER-premium payment mode. what i...
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Add to cartWhat happen to the cash value when a whole life insurance policy matures? - ANSWER-Cash value is paid to the policy owner, what is the major difference between the most common types of whole life policies: straight life, limited payment and single premium? - ANSWER-premium payment mode. what i...
All of the following are duties and responsibilities of producers at the time of application EXCEPT A - Change any incorrect statement on the application by personally initialing next to the corrected statement. B - Explain the nature and type of any receipt the producer is giving to the applica...
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Add to cartAll of the following are duties and responsibilities of producers at the time of application EXCEPT A - Change any incorrect statement on the application by personally initialing next to the corrected statement. B - Explain the nature and type of any receipt the producer is giving to the applica...
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...
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Add to cartAn 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...
401 k plan - 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 - ANSWER-Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collater...
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Add to cart401 k plan - 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 - ANSWER-Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collater...
Insurable Receipt - ANSWER-The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) Representations - ANSWER-Statements in the application for insurance that are believed to be true to the best of the applicants knowledge...
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Add to cartInsurable Receipt - ANSWER-The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) Representations - ANSWER-Statements in the application for insurance that are believed to be true to the best of the applicants knowledge...
The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - ANSWER-Conditional receipt. Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - ANSWER...
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Add to cartThe receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - ANSWER-Conditional receipt. Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - ANSWER...
Which of the following situations requires a person to be licensed? - ANSWER-Receive commissions The settlement option that would provide a beneficiary with the largest monthly income from a life insurance death benefit is called - ANSWER-Straight life Which of the following contains the compa...
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Add to cartWhich of the following situations requires a person to be licensed? - ANSWER-Receive commissions The settlement option that would provide a beneficiary with the largest monthly income from a life insurance death benefit is called - ANSWER-Straight life Which of the following contains the compa...
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