Life insurance practice exam Primerica questions with complete solutions

The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - ANSWER-Conditional receipt. Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - ANSWER-Representations. All of the following apply to the waiver of premium rider EXCEPT - ANSWER-There is no charge for this provision. An annuity is considered fixed when it does all of the following EXCEPT - ANSWER-Provides the annuitant with either the guaranteed or current interest rate, whichever is less. The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called - ANSWER-Continuous premium (straight) life. A beneficiary who has a vested interest in the proceeds of a life insurance policy is the - ANSWER-Irrevocable beneficiary. The insured died four months after a $100,000 life insurance policy was issued and delivered. At the time of the claim, the company noticed the original application was missing some key information. What will the company do? - ANSWER-Pay the death claim because the insurer waived the right to obtain the missing information The policy and a copy of the application, along with any riders and amendments, is called the - ANSWER-Entire contract. At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty? - ANSWER-59 ½ Which settlement option guarantees an income for two or more recipients for as long as they live? - ANSWER-Joint and Survivor Which type of policy allows the insured to change the amount of the death benefit, the amount of premium, or the type of coverage as their needs change? - ANSWER-Adjustable life To prevent individuals from profiting from a loss, insurance companies must be certain that - ANSWER-Insurable interest exists.