PRIMERICA LIFE INSURANCE EXAM LATEST
2024-2025 ACTUAL EXAM 150 REAL EXAM
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES (100% VERIFIED ANSWERS)
Terms in this set (194)
An insured purchased an A. mutual
insurance policy 5 years
ago. Last year, she funds not paid out after paying claims and other
received a dividend check operating costs are returned to the policy owners in
from the insurance the form of a dividend. if all funds are paid out, no
company that was not dividends are paid
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. nonprofit service
organization
d. stock
,Following a career B. reduction
change, an insured is no
longer required to the insured's change in lifestyle and habits would
perform many physical likely reduce the chances of health problems
activities, so he has
implemented a program
where he walks and jogs
for 45 minutes each
morning. The insured has
also eliminated most fatty
foods from his diet. Which
method of dealing with
risk does this scenario
describe?
a. retention
b. reduction
c. transfer
d. avoidance
In insurance, an offer is A. an applicant submits an application to the insurer
usually made when
in insurance, the offer is usually made by the applicant
a. an applicant submits an in the form of an application. acceptance takes place
application to the insurer when an insurer's underwriter approves the
b. the insurer approves the application and issues a policy
application and receives
the initial premium
c. the agent hands the
policy to the policyholder
d. an agent explains a
policy to a potential
applicant
,the causes of loss insured A. perils
against in an insurance
policy are known as perils are the causes of loss insured against in an
insurance policy
a. perils
b. losses
c. risks
d. hazards
what documentation A. agents contract with the principal
grants express authority to
an agent? the principal grants authority to an agent through the
agent's contract
a. agents contract with the
principal
b. agents insurance
license
c. fiduciary contract
d. state provisions
which of the following A. domestic
best describes an
insurance company that a company is domestic when doing business within
has been formed under the state in which it is incorporated
the laws of this state?
a. domestic
b. sovereign
c. alien
d. foreign
, which of the following D. race
factors is NOT considered
by an underwriter when age, medical history, and sex provide sound statistical
determining the premium date for determining the probability of loss. Race,
rates for an individual religion, sexual orientation, etc. are the factors that
seeking insurance? cannot be used because there is not sound statistical
data to show that they effect the probability of loss;
a. medical history therefore, they are considered to be discriminatory
b. sex
c. age
d. race
in insurance transactions, A. handling insurer funds in a trust capacity
fiduciary responsibility
means an agents fiduciary responsibility includes handling
insurer funds in a trust capacity
a. handling insurer funds in
a trust capacity
b. maintaining good credit
record
c. being liable with
respect to payment of
claims
d. commingling premiums
with agents personal
funds
the authority granted to B. express authority
an agent through the
agent's contract is express powers are written into the contract between
referred to as the insurer and the agent
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
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