Exam (elaborations)
Primerica - Exam test Questions
- Course
- Institution
Primerica - Exam test Questions
[Show more]
Content preview
Primerica - Exam test Questions1. 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: Adhesion
2. An insurance policy that only requires a payment of premium at its
inception, provides insurance protection for the life of the insured, and
matures at the insured's age 100 is called
a) Modified Endowment Contract (MEC).
b) Level term life.
c) Graded premium whole life.
d) Single premium whole life.: Single Premium Whole Life
3. All of the following are true regarding a decreasing term policy EXCEPT
a) The payable premium amount steadily declines throughout the duration
of the contract.
b) It has a lower premium than level term.
c) The contract pays only in the event of death during the term and there is
no cash value.
d) The face amount steadily declines throughout the duration of the
contract.-: The payable premium amount steadily declines throughout the
duration of the contract
4. The type of policy that can be changed from one that does not accumulate
cash value to the one that does, is a a) Decreasing Term Policy.
b) Whole Life Policy.
c) Convertible Term Policy.
d) Renewable Term Policy.: Convertible Term Policy
5. The policyowner of an adjustable life policy wants to increase the death
benefit. Which of the following statements is correct regarding this change?
a) The death benefit can be increased by providing evidence of insurability.
b) The death benefit cannot be increased.
, Primerica - Exam test Questions
c) The death benefit can be increased only when the policy has developed a
cash value.
d) The death benefit can be increased only by exchanging the existing policy
for a new one.: The death benefit can be increased by providing evidence of
insurability
6. When would a 20-pay whole life policy endow?
a) After 20 payments
b) In 20 years
c) When the insured reaches age 100
d) At the insured's age 65: When the insured reaches age 100
7. An insured had a $10,000 term life policy. The annual premium of $200
was due on February 1; however, the insured failed to pay the premium. He
died on February 28. How much would the beneficiary receive from the
policy? a) $0
b) $200
c) $9,800
d) $10,000: $9,800
8. What is the term for how frequently a policyowner is required to pay
the policy premium? a) Consideration
b) Mode
c) Schedule
d) Grace period: Mode
9. Which of the following types of insurance policies would perform the
function of cash accumulation? a) Increasing term
b) Whole life
c) Term life
d) Credit life: Whole Life
10. Which of the following is called a "second-to-die" policy?
a) Juvenile life
b) Joint life
c) Survivorship life
d) Family income: Survivorship Life
11. When a life insurance policy is cancelled and the insured has selected
the extended term nonforfeiture option, the cash value will be used to
purchase term insurance that has a face amount
, Primerica - Exam test Questions
a) In lesser amounts for the remaining policy term of age 100.
b) Equal to the cash value surrendered from the policy.
c) The same as the original policy minus the cash value.
d) Equal to the original policy for as long a period of time that the cash
values will purchase.: Equal to the original policy for as long a period of time
that the cash values will purchase.
12. Which of the following is the best reason to purchase life insurance
rather than annuities?
a) To liquidate a sum of money over a lifetime
b) To create an estate
c) To liquidate a sum of money over a period of years
d) To create regular income payments: To create an estate
13. Which of the following is NOT the consideration in a policy?
a) The application given to a prospective insured
b) Something of value exchanged between parties
c) The premium amount paid at the time of application
d) The promise to pay covered losses: The application given to a prospective
insured
14. If an insurer issued a policy based on the application that had
unanswered questions, which of the following will be TRUE?
a) The insurer may deny coverage later, because of the information
missing on the application.
b) The policy will be interpreted as if the insurer waived its right to have
an answer on the application.
c) The policy will be interpreted as if the insured did not have an answer
to the question.
d) The policy will be void.: The policy will be interpreted as if the insurer
waived its right to have an answer on the application
15. Who is a third-party owner?
a) An insurer who issues a policy for two people
b) An employee in a group policy
c) An irrevocable beneficiary
d) A policyowner who is not the insured: A policy owner who is not the insured
16. Which is TRUE about the cash surrender nonforfeiture option?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KINGNOTES1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71184 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now