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. nonprofi...
Primerica life insurance exam 2023/24 all
questions are answered correctly
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,Primerica life insurance exam 2023/24 all
questions are answered correctly
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 - ANSWER 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 - 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
,Primerica life insurance exam 2023/24 all
questions are answered correctly
d. an agent explains a policy to a potential applicant - ANSWER 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 - 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 - 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 - 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
, Primerica life insurance exam 2023/24 all
questions are answered correctly
premium rates for an individual seeking insurance?
a. medical history
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