Primerica UCanPass Practice 2023 Questions and Answers with complete solution
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Primerica
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Primerica
Primerica UCanPass Practice 2023 Questions and Answers with complete solution
401 K Plan
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
Absolute: A permanent and irrevocable transfer ...
primerica ucanpass practice 2023 questions and answers with complete solution 401 k plan a qualified retirement plan in which the employee can set aside a portion of their income with pre tax dollars
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Primerica UCanPass Practice 2023 Questions and Answers
with complete solution
401 K Plan
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
Absolute: A permanent and irrevocable transfer of rights and/or benefits by the
policyowner. Collateral: A temporary and/or revocable transfer of benefits by the
policyowner.
Accelerated Death Benefit
Policy provision that allows full or partial payment of the policy's death benefit before the
insured's death if he/she is terminally ill.
Accidental Death Benefit
An extra cost rider that requires the insurance company to pay an additional benefit in
the event that the insured dies within 90 days of an accident as a direct result of the
accident.
Accumulate at Interest
The Dividend Option where the policyowner leaves the dividends with the insurer to
invest and earn interest.
Adhesion
Since the insurer created all the documents of the contract, any ambiguities in the
contract will be settled in favor of the insured. Since the insurer wrote the contract they
are stuck with it.
Adverse Selection
The tendency for less favorable risks to seek or continue insurance to a greater extent
than more favorable risks.
Agency Agreement or Agency Contract
A legal document containing the terms of the agreement between the agent and the
insurance company. It clearly defines what an agent can and cannot do, and how
he/she will be compensated.
Agent Authorities
Expressed: Power or authority specifically granted in writing to an agent by the
insurance company in their Agency Agreement. Apparent: Power or authority that the
public reasonably assumes an agent has based upon his/her actions. Implied: Power or
authority that is not expressly granted by the company but that an agent can assume or
that are implied he/she has in order to transact insurance business.
Agent/Producer
Anyone who sells or aids in the selling of insurance. Legally represents the company.
Agent's Report
A written report from the agent submitted to the insurer along with the application
disclosing what the agent knows, observed, or learned about the proposed insured's
risks.
Aleatory
, Unequal exchange of value. One party may obtain a far greater value than the other
under the contract.
Annual Renewable Term
A Term Life Insurance contract which gives the policyowner the option to renew the
policy each year without showing proof of insurability. Premiums increase at each
renewal
Annuitant
The person that buys an annuity; may or may not be an annuity's policyowner.
Annuity
A contract/policy that guarantees to pay income for a specified period of time or for the
life of the annuitant. Designed to prevent people from outliving their savings.
Appointment
Authorization of an agent/producer by an insurer to represent the company.
Blackout Period
The period of time between the youngest child turning 16 and the widow(er) reaching
retirement age during which no Social Security Survivor Benefits are paid to the
surviving spouse.
Buy-Sell Agreement
Business use of Life Insurance where partners in a business buy life insurance on each
other. They agree that when one of them dies the survivors have the right to purchase
the deceased partner's share of the business. The death benefit from the insurance is
used to finance the purchase.
Cash Nonforfeiture Option
Policyowner receives a lump-sum payment of the current cash value of the policy upon
surrender of the policy. The policy cannot be reinstated.
Cash Settlement Option
Upon maturity of an insurance policy the beneficiary receives a lump-sum payment of
the entire policy proceeds due.
Cash Value
That part of an insurance policy that is the equity amount legally available to the
policyowner. The cash value accumulates throughout the duration of the policy. Also
known as living benefit or policy savings.
Commissioner
Public official in charge of the state's department of insurance. Charged with regulating
the insurance industry in his/her state by enforcing the insurance laws.
Conditional
Certain conditions must be met in order for policy to pay-out.
Conditional Receipt
An interim insuring agreement under which the insurance company agrees to start
coverage on the later of either the date of application or the date of the medical exam IF
the proposed insured is found to be insurable on that date.
Consideration
A necessary element of a contract; something of value exchanged for the transfer of
risk. Insured's consideration is payment of premiums and truthful statements on the
application. Insurer's consideration is promises contained in the contract.
Contingent Beneficiary
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