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PrimericaBUNDLED Practice Exams Test A 2023 with 100% correct answers
Primerica Practice Exam Test A 2023 with 100% correct answers Primerica life insurance state exam 2023 with 100% correct answers
[Show more]Primerica Practice Exam Test A 2023 with 100% correct answers Primerica life insurance state exam 2023 with 100% correct answers
[Show more]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 insured purchase the policy? 
 
a. mutual 
b. reciprocal 
c. nonp...
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Add to cartAn 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 insured purchase the policy? 
 
a. mutual 
b. reciprocal 
c. nonp...
The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) 
conditional receipt 
 
 
 
Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called 
representati...
Preview 2 out of 5 pages
Add to cartThe receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) 
conditional receipt 
 
 
 
Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called 
representati...
What is insurance? 
Transfer of the possibility of loss (risk) to an insurance company. 
 
 
 
What is a risk? 
The uncertainty of financial loss 
 
 
 
There are two types of loss 
Pure and Speculative 
 
 
 
Which type of loss is insurable? 
Pure 
 
 
 
Why is Pure loss insurable? 
Loss must be fi...
Preview 2 out of 15 pages
Add to cartWhat is insurance? 
Transfer of the possibility of loss (risk) to an insurance company. 
 
 
 
What is a risk? 
The uncertainty of financial loss 
 
 
 
There are two types of loss 
Pure and Speculative 
 
 
 
Which type of loss is insurable? 
Pure 
 
 
 
Why is Pure loss insurable? 
Loss must be fi...
Deferred Annuity 
An annuity in which the income payments begin sometime after one year from the date of red annuities can be funded with a single lump sum payment so it is referred to as a single premium differed annuities. 
 
 
 
Human life values approach 
Calculates an individual's life value b...
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Add to cartDeferred Annuity 
An annuity in which the income payments begin sometime after one year from the date of red annuities can be funded with a single lump sum payment so it is referred to as a single premium differed annuities. 
 
 
 
Human life values approach 
Calculates an individual's life value b...
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 featu...
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Add to cartAn 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 featu...
Guaranteed insurability option 
An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be...
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Add to cartGuaranteed insurability option 
An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be...
Risk 
uncertainty of a financial loss; 2 types 
 
 
 
Two typed of risks 
Pure (Insurable) and speculative (uninsurable) 
 
 
 
Benefits of purchasing insurance? 
You get to transfer financial risk left after passing to insurance company 
 
 
 
Law of large numbers 
the larger the size of the group ...
Preview 2 out of 8 pages
Add to cartRisk 
uncertainty of a financial loss; 2 types 
 
 
 
Two typed of risks 
Pure (Insurable) and speculative (uninsurable) 
 
 
 
Benefits of purchasing insurance? 
You get to transfer financial risk left after passing to insurance company 
 
 
 
Law of large numbers 
the larger the size of the group ...
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 insured purchase the policy? 
 
a. mutual 
b. reciprocal 
c. nonp...
Preview 4 out of 60 pages
Add to cartAn 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 insured purchase the policy? 
 
a. mutual 
b. reciprocal 
c. nonp...
nsurance 
A contract in which one party agrees to indemnify the insured party against loss, damage or liability from an unknown event. 
 
 
 
Insurance transfers 
The reduction, decrease, or disappearance of value of the person or property insured in a policy, caused by a named peril. 
 
 
 
Risk 
T...
Preview 2 out of 5 pages
Add to cartnsurance 
A contract in which one party agrees to indemnify the insured party against loss, damage or liability from an unknown event. 
 
 
 
Insurance transfers 
The reduction, decrease, or disappearance of value of the person or property insured in a policy, caused by a named peril. 
 
 
 
Risk 
T...
1. An annuity that is purchased with a lump sum premium and whose benefits begin after 12 months is called a: 
A. Single premium immediate annuity. 
B. Single premium deferred annuity. 
C. Level premium variable annuity. 
D. Flexible premium fixed annuity. 
Single premium deferred annuity 
 
 
 
2. ...
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Add to cart1. An annuity that is purchased with a lump sum premium and whose benefits begin after 12 months is called a: 
A. Single premium immediate annuity. 
B. Single premium deferred annuity. 
C. Level premium variable annuity. 
D. Flexible premium fixed annuity. 
Single premium deferred annuity 
 
 
 
2. ...
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? 
a) Estate liquidation 
b) Nonpayment of premium 
...
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Add to cartAn insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? 
a) Estate liquidation 
b) Nonpayment of premium 
...
Which law is the foundation of statistical prediction of loss upon which rates for insurance are calculated? 
A) Law of Group Evaluation 
B) Law of Large Numbers 
C) Law of Masses 
D) Law of Averages 
B) Law of Large Numbers 
 
 
 
A producer who fails to segregate premium monies from his own person...
Preview 2 out of 12 pages
Add to cartWhich law is the foundation of statistical prediction of loss upon which rates for insurance are calculated? 
A) Law of Group Evaluation 
B) Law of Large Numbers 
C) Law of Masses 
D) Law of Averages 
B) Law of Large Numbers 
 
 
 
A producer who fails to segregate premium monies from his own person...
401k plan 
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 
Absolute: A permanent and irrevocable transfer 
of rights and/or benefits by the policyowner. 
Collateral: A temporary an...
Preview 2 out of 5 pages
Add to cart401k plan 
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 
Absolute: A permanent and irrevocable transfer 
of rights and/or benefits by the policyowner. 
Collateral: A temporary an...
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