Primerica Practice Exam Test A with 100% correct answers

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. Single 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. Human life value approach 00:01 01:41 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. At 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. Risk 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. medical 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. perjury 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 universal 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. 30 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. Frequency of premium payment 10. Intentionally omitting a history of heart problems on an application is: A. Prudent. B. Misrepresentation. C. Consideration. D. Concealment. Concealment 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. nonprofit organizations 12. The intent of replacement regulations is to protect the: A. Producer. B. Agency. C. Policyowner. D. Insurance company. Policy owner 00:00 01:41 13. Which provision allows a lapsed policy to be put back in force? A. Replacement B. Incontestability C. Grace period D. Reinstatement Reinstatement 14. According to the California Department of Insurance, an insurer whose articles of incorporation are registered in Oslo, Norway is considered a/an: A. Domestic insurer. B. Foreign insurer. C. Alien insurer. D. Admitted insurer. Alien insurer 15. Mortality is defined as the A. Probability of a disability. B. Rate of death. C. Rate of annuitization. D. Probability of an illness. Rate of death