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PRIMERICA LIFE INSURANCE EXAM WITH 100% CORRECT ANSWERS 2024/ 2025 CA$37.52   Add to cart
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PRIMERICA LIFE INSURANCE EXAM WITH 100% CORRECT ANSWERS 2024/ 2025

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PRIMERICA LIFE INSURANCE EXAM WITH 100% CORRECT ANSWERS 2025 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...

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  • February 9, 2023
  • 42
  • 2022/2023
  • Exam (elaborations)
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  • primerica life insurance
  • primerica life
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  • primerica life insurance exam with 100 correct answers 2023
  • primerica life insurance exam
  • an insured purchased an insurance policy 5 years ago last year

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PRIMERICA LIFE INSURANCE EXAM WITH 100% CORRECT ANSWERS 2023 An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company th at 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 - Correct answer -A. mutual funds not paid out a fter 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. avoid ance - Correct answer -B. 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 - Correct answer -A. an a pplicant 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 in sured against in an insurance policy are known as a. perils b. losses c. risks d. hazards - Correct answer -A. 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 - Correct answer -A. agents contract with the principal the principal grants authority to an agent through the agent's contract which of the following best describes an insurance company that has been formed under the laws of this state? a. domestic b. sovereign c. alien d. foreign - Correct answer -A. domestic a company is domestic when doing business within the state in which it is incorporated which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? a. medical history b. sex c. age d. race - Correct answer -D. race age, medical history, and sex p rovide sound statistical date for determining the probability of loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is not sound statistical data to show that they effect the probability of loss; therefore, the y are considered to be discriminatory in insurance transactions, fiduciary responsibility means a. handling insurer funds in a trust capacity b. maintaining good credit record c. being liable with respect to payment of claims d. commingling premiums with agents personal funds - Correct answer -A. handling insurer funds in a trust capacity an agents fiduciary responsibility includes handling insurer funds in a trust capacity the authority granted to an agent through the agent's contract is referred to as a. absolute authority b. express authority c. apparent authority d. implied authority - Correct answer -B. express authority express powers are written into the contract between the insurer and the agent insurance policies are not drawn up though negotiations, and an insured has little to say about its provisions. what contract characteristic does this describe? a. unilateral b. conditional c. personal d. adhesion - Correct answer -D. adhesion a contract of adhesion is prepared by only the insurer; the insured's only option is to accept or reject the policy as its written which of the following insurers are owned by stockholde rs who have the usual rights of ownership, including the right of voting? a. reciprocal b. fraternal c. stock d. mutual - Correct answer -C. stock only stock insurance companies are owned and controlled by stockholders which of the following best describ es the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? a. subrogation b. warranty c. aleatory d. adhesion - Correct answer -C. aleatory an insurance contract is an aleatory contract in that it requires a relatively small amount of premium for a large risk When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the f ollowing? a. legal purpose b. contract of adhesion c. acceptance d. consideration - Correct answer -D. consideration consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of pre mium and the representations made in the application which of the following would qualify as a competent party in an insurance contract? a. the applicant is intoxicated at the time of application b. the applicant is 12 year old student c. the applicant i s under the influence of a mind -impairing medication at the time of application d. the applicant has a prior felony conviction - Correct answer -D. the applicant has a prior felony conviction when an insurer and insured enter into a contract, both parties must be legal of age and mentally competent. It is legal for a person convicted of a felony to buy an insurance contract. An intoxicated person, however, may not be mentally competent, a 12 year old student is considered to be underage in most states and a person under mind -impairing medication most likely would not be mentally competent an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a. repr esentation b. adhesion c. consideration d. good health - Correct answer -C. consideration the binding force in any contract is consideration. consideration on the part of the insureds the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the even of loss which of the following is a primary source of information used for insurance underwriting? a. application b. applicant interviews c. medical records. d. private investigations - Correct answer -A. application

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