Exam (elaborations)
PRIMERICA LIFE INSURANCE TEST
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PRIMERICA LIFE INSURANCE TEST
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PRIMERICA LIFEINSURANCE
TEST
An example of an alien insurer doing business in this state is one formed under the laws
of - Answers -Mexico
Partners in a business want to make sure that if - Answers -Buy-Sell Agreement
Ten years ago an insured purchased a life insurance policy designed to pay his family
$500 - Answers -Family income policy
An agent delivers a policy to an applicant who pays the initial premium but refuses to
submit - Answers -Consideration
Life settlement contracts are out into effect by which of the following - Answers -An
absolute assignment
A married couple wants to include the entire family in their whole life policy under one
rider. Which of - Answers -Family term
Among people in the same class and life expectancy, which of the following factors can
be used to influence premium rates? - Answers -Occupation
Which of the following NOT be eligible for coverage under key person - Answers -The
owner of the shop
An aleatory contract is based on what kind of exchange - Answers -Unequal exchanges
of values
,Under what circumstances will the contingent beneficiary receive the death benefit -
Answers -If the primary beneficiary dies before the insured
Which of the following is NOT a component of an insurance policy premium - Answers -
Number of beneficiaries
A warranty may relate to which of the following - Answers -The past the present and the
future will
A college student will graduate next year. His studies have limited his ability to work, so
he has borrowed funds to pay for his education - Answers -Modified whole life
A person has a history of DUIs. To his insurer, this presents what type of hazard -
Answers -Morale
Which of the following is not a type of hazard - Answers -Exposure
An applicant for a disability insurance policy has a heart condition of which they are
unaware and therefore they answer no to the question pertaining to heart problems on
their application. Their answer is considered to be a - Answers -Representation
Which of the following would be considered peril - Answers -Fire
Which of the following is NOT a standard exclusion in life insurance policies - Answers -
Disability
Joe, age 63, was disabled and can no longer work. He meets the Social Security
definition of total disability. How many work credits - Answers -40
To purchase insurance, The policy owner must face the possibility of losing money or
something of value in the event of loss. What is this concept called? - Answers -
Insurable interest
When the owner of a participating whole life policy uses the dividend to provide more
life insurance coverage, which of the following dividend options is being used? -
Answers -Paid up additions
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - Answers -Estate conservation
The entire contract includes all of the following EXCEPT - Answers -A buyers guide
Concerning the Family Protection Policy, all of the following statements are true
EXCEPT - Answers -Children, upon reaching the age of majority, are permitted to
convert to an individual policy with proof of insurability
, An insured bought an insurance policy that requires him to pay $150 in premiums on the
15th of each month. He then takes an extended vacation and forgets to pay the
premium - Answers -Grace period
the purpose of the Fair Credit Reporting Act is to - Answers -Protect consumers against
the circulation of inaccurate or obsolete personal or financial information
A life insurance policy qualifies a Modified Endowment Contract (MEC) if the amount of
premium paid exceeds the amount that would have provided paid up insurance in how
many years - Answers -7 years
Which of the following will be eligible for a tax sheltered annuity - Answers -Public
school teachers
Which of the following best describes life annuity with period certain option - Answers -It
guarantees benefit payments for life of the annuitant for a specified period for the
beneficiary
Slippery floors, reckless driving, or providing false information are examples of.. -
Answers -hazards
Which of the following statements is INCORRECT concerning Modified Endowment
Contracts (MECs) - Answers -An MEC must always pass the 7-pay test
Your client wants to provide a retirement income for his elderly parents in case
something happens to him. He wants to make sure that both beneficiaries are
guaranteed an income for life. - Answers -Joint and Survivor
Which of the following is the primary source of information that an insurer uses to
evaluate an insureds risk for life insurance - Answers -Insurance application
A life insurance policy that provides coverage to every family member in a single policy,
with permanent insurance on the breadwinner and convertible term on other family
members is called - Answers -A family policy
Individual members covered by group life insurance receive - Answers -A certificate of
insurance
Considering the California Insurance Code's definition of an insurable event, which of
the following statements is true? - Answers -The more predictable a loss the more
insurable it is
Which of the following will NOT be included in the buyers guide? - Answers -Specific
information about the policy
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