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Primerica Life Insurance Practice Exam Questions and Complete Solutions Graded A+
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Primerica Life Insurance Practice Exam Questions and Complete Solutions Graded A+
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Primerica Life InsurancePractice Exam Questions
and Complete Solutions
Graded A+
Denning [Date] [Course title]
,In an insured's neighborhood, individuals are required to pay the fire department if called to their
premises. This insured has a homeowner policy. How much will the policy pay for these fire department
service charges? - Answer: up to $500
When applying for an individual life insurance policy, an applicant states that he went to the doctor for
nausea, but fails to mention that he was also having severe chest pains. What is this act called? -
Answer: Concealment
The abandonment provision in property insurance policies state that - Answer: The insured may not
relinquish ownership of damage property to claim a total loss, but must protect damage property from
further loss
If during a sales presentation a producer intentionally makes a statement which may mislead the
insurance applicant, the producer has committed? - Answer: Misrepresentation
A neighbor's tree has fallen, the insured's homeowners policy will NOT pay to remove the tree unless -
Answer: The tree is blocking the driveway
If a consumer requests additional information concerning an investigative consumer report, how long
does the insurer or reporting agency have to comply - Answer: 5 days
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal
property of the insured is - Answer: 50% of the amount provided as Coverage A
The amount an insurer will pay under Coverage D (loss of use) depends on - Answer: How long a
dwelling has been occupied
According to the loss payment condition in HO policies, losses must be paid within how many days of
the insurer receiving proof of loss? - Answer: 60 days
An insured must get advance warning if the premium will be increased by more than - Answer: 15%
,How dose the Mobile home endorsement affect the other coverage of law or ordinance in a
homeowners policy - Answer: it removes the coverage
Insurance is the transfer of - Answer: Risk
The contents coverage on a homeowners policy would pay much after the loss of one of a pair of golden
candlesticks? - Answer: The difference in he actual cash value as a pair and a single
The authority granted to an agent though the agents contract is referred to as - Answer: Express
Authority
A property insurance clause that extends broader legislated or regulated coverage to current policies, so
long as I does not result in a higher premium - Answer: Liberalization
Compensation to an insured that restores them to the same financial position that they enjoyed prior to
the loss occurring - Answer: indemnity
What's the maximum amount of time a temporary license can be issued - Answer: 15 months
Maximum amount of commissions from controlled business - Answer: 25%
Investigative Consumer Report cannot be made unless the consumer is advised within - Answer: 3 days
Every property or casualty policy is comprised of the following major components - Answer:
1.Declarations
2.Definitions
3.Insuring agreement
4.Additional coverage
5.Conditions
6.Endorsements
7.Exclusions and policy limits
, An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date? - Answer: The date of medical exam.
What is true about nonforfeiture values? - Answer: They are required by state law to be included in the
policy.
If an annuitant dies before annuitization occurs, what will the beneficiary receive? - Answer: Cash value
of the plan
Upon policy delivery, the agent may be required to obtain any of the following EXCEPT - Answer: Signed
waiver of premium.
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policyowner? - Answer: Third-party ownership
The death benefit in a variable universal life policy - Answer: Depends on the performance of a separate
account.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the
insured, and to whom the benefits will be paid? - Answer: Insuring clause
Which of the following is true for both equity indexed annuities and fixed annuities? - Answer: They
have a guaranteed minimum interest rate.
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy
added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the
surrender value would be income taxable? - Answer: $3,000
The difference between the premiums paid and the cash value would be taxable. In this example, the
difference between the premiums paid ($15,000) and the cash value ($18,000) is $3,000.
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