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Primerica Life Insurance Exam 2023/ 194 Questions and Answers/Guaranteed Pass/Graded A+
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Primerica Life Insurance Exam 2023/ 194 Questions and Answers/Guaranteed Pass/Graded A+
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Primerica Life Insurance Exam 2023/ 194Questions and Answers/Guaranteed
Pass/Graded A+
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. nonprofit service organization
d. stock - -A. mutual
funds not paid out after 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. avoidance - -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 - -A. an applicant 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 insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards - -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 - -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 - -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 - -D. race
age, medical history, and sex provide 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, they 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 - -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 - -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 - -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 stockholders who have the usual rights of
ownership, including the right of voting?
a. reciprocal
b. fraternal
c. stock
d. mutual - -C. stock
only stock insurance companies are owned and controlled by stockholders
-which of the following best describes 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
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