Primerica

Every licensee must indicate on which of the following documents his or her license number? a. Print advertisements b. Business Cards c. Written Price Quotations d. All of the above correct answer: D. All of the above 2. When any change in residence address occurs, every licensee and every applicant for a licens (Select the most correct response) a. Within 6 months after the move has taken place b. Within 6 months before the license is to expire c. 30 days before submitting a c...

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 correct answer: d. insurable interest-STOLI purchaser doesn't know the insured, or have any interest in the insured's longevity, so it violates the principle of insurable interest Which is generally true regarding insureds who have earned preferred status? a. they keep a higher percentage of any interest earned on their policie...

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called correct answer: Cost of living rider. What method is used to determine the taxable portion of each annuity payment? correct answer: The exclusion ratio The ratio of the total investment in that contract to the expected return is developed to determine the portion of the annuity payment that will be taxable and nontaxable. A se...

What limits the amount that a policyowner may borrow from a whole life insurance policy? correct answer: Cash value What is NOT true about a joint and survivor annuity benefit option? correct answer: Payments stop after the first death among the annuitants. If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? correct answer: Fixed period Th...

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 feature does this describe? a) Unilateral b) Conditional c) Personal d) Adhesion correct answer: Adhesion An insurance policy that only requires a payment of premium at its inception, provides insu...

An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? correct answer: Guaranteed insurability option Which of the following best describes fixed-period settlement option? correct answer: Both the principal and interest will be liquidated over a selected pe...

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 application for the applicant. correct answer: Answer: C All applications must have the appropriate authorized signature Under a 20-pay whole life policy, in order for the policy to pay the death benef...

All of the following are true regarding a qualified annuity EXCEPT correct answer: At distribution, all amounts received by the employee are tax free. What type of insurance would be used for a Return of Premium rider? correct answer: Increasing Term Which of the following is the best reason to purchase life insurance rather than annuities? correct answer: To create an estate Every expressed warranty made at or before the execution of a policy must be correct answer: Contained in an...

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? correct answer: Guaranteed Lifetime Withdrawal What describes a situation when poor risks are balanced with preferred risks, and average risks are in the middle? correct answer: Profitable distribution of exposures In which of the following instances would the premium be tax deductible? correct answer: Premiums paid by an employer on a $30,000 group term li...

Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation correct answer: Be fined a sum of $1,000. What is the purpose of a conditional receipt? correct answer: It is intended to provide coverage on a date prior to the policy issue. If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has b...