Primerica Life Insurance Exam Questions And Answers
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Course
PRIMERICA LIFE INSURANCE
Institution
PRIMERICA LIFE INSURANCE
An insured will be allowed to reactivate her lapsed life insurance policy if action
is taken within a certain period of time, and proof of insurability is provided.
Which policy provision allows this?
A. Incontestable clause
B. Grace period
C. Reinstatement provision
D. Waiver of premium pr...
Primerica Life Insurance Exam
Questions And Answers
In a case where the primary beneficiary predeceases the insured, in the event
of the insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary
✓~ The contingent beneficiary
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not 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
A. mutual
✓~ funds not paid out after paying claims and other operating costs are returned
to the policy owners in the form of a dividend. if all funds are paid out, no dividends
are paid
Following a career change, an insured is no longer required to perform many
physical 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
B. reduction
, ✓~ Reduction: the insured's change in lifestyle and habits would likely reduce the
chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the 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
A. an applicant submits an application to the insurer
✓~ in insurance, the offer is usually made by the applicant in the form of an
application. acceptance takes place when an insurer's underwriter approves the
application and issues a policy
the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
, d. hazards
✓~ Perils: perils are the causes of loss insured against in an insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents' insurance license
c. fiduciary contract
d. state provisions
✓~ agents contract with the principal; the principal grants authority to an agent
through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement plan?
✓~ It needs IRS approval
Which of the following may NOT be included in an insurance company's
advertisement?
✓~ That its policies are covered by a state Guaranty Association
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