Exam (elaborations)
Life Insurance Primerica Exam Questions and Complete Solutions Graded A+
- Course
- Institution
Life Insurance Primerica Exam Questions and Complete Solutions Graded A+
[Show more]
Content preview
Life InsurancePrimerica Exam
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,401 k plan - Answer: A qualified retirement plan in which the
employee can set aside a portion of their income
with pre-tax dollars.
Absolute Assignment v. Collateral
Assignment - Answer: Absolute: A permanent and irrevocable transfer
of rights and/or benefits by the policyowner.
Collateral: A temporary and/or revocable transfer
of benefits by the policyowner.
Accelerated Death Benefit - Answer: Policy provision that allows full or partial
payment of the policy's death benefit before the
insured's death if he/she is terminally ill.
Accidental Death Benefit - Answer: An extra cost rider that requires the insurance
company to pay an additional benefit in the event
that the insured dies within 90 days of an
accident as a direct result of the accident.
Accumulate at Interest - Answer: The Dividend Option where the policyowner
leaves the dividends with the insurer to invest
and earn interest.
Adhesion - Answer: Since the insurer created all the documents of
the contract, any ambiguities in the contract will
be settled in favor of the insured. Since the
insurer wrote the contract they are stuck with it.
Adverse Selection - Answer: The tendency for less favorable risks to seek or
, continue insurance to a greater extent than more
favorable risks.
Agency Agreement or Agency Contract - Answer: A legal document containing the terms of the
agreement between the agent and the insurance
company. It clearly defines what an agent can
and cannot do, and how he/she will be
compensated.
Agent Authorities - Answer: Expressed: Power or authority specifically
granted in writing to an agent by the insurance
company in their Agency Agreement. Apparent:
Power or authority that the public reasonably
assumes an agent has based upon his/her
actions. Implied: Power or authority that is not
expressly granted by the company but that an
agent can assume or that are implied he/she has
in order to transact insurance business.
Agent/Producer - Answer: Anyone who sells or aids in the selling of
insurance. Legally represents the company.
Cash Settlement Option - Answer: Upon maturity of an insurance policy the
beneficiary receives a lump-sum payment of the
entire policy proceeds due.
Agent's Report - Answer: A written report from the agent submitted to the
insurer along with the application disclosing what
the agent knows, observed, or learned about the
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 YourExamplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80461 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now