Primerica Practice Exam Test A Exam Questions with Complete Solutions

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 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. - ANSWER-Human life value approach 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. - ANSWER-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. - ANSWER-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. - ANSWER-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. - ANSWER-perjury