Exam (elaborations)
Primerica Life Insurance Practice Questions and Complete Solutions Graded A+
- Course
- Institution
Primerica Life Insurance Practice Questions and Complete Solutions Graded A+
[Show more]
Content preview
Primerica LifeInsurance Practice
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,When applying for an individual life insurance policy, an applicant states that he went to the doctor for
nausea, but fails to mention that he was also having severe chest pains. What is this act called? -
Answer: Concealment
If during a sales presentation a producer intentionally makes a statement which may mislead the
insurance applicant, the producer has committed? - Answer: Misrepresentation
If a consumer requests additional information concerning an investigative consumer report, how long
does the insurer or reporting agency have to comply - Answer: 5 days
An insured must get advance warning if the premium will be increased by more than - Answer: 15%
Insurance is the transfer of - Answer: Risk
The authority granted to an agent though the agents contract is referred to as - Answer: Express
Authority
A property insurance clause that extends broader legislated or regulated coverage to current policies, so
long as I does not result in a higher premium - Answer: Liberalization
Compensation to an insured that restores them to the same financial position that they enjoyed prior to
the loss occurring - Answer: indemnity
What's the maximum amount of time a temporary license can be issued - Answer: 15 months
Maximum amount of commissions from controlled business - Answer: 25%
Investigative Consumer Report cannot be made unless the consumer is advised within - Answer: 3 days
An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date? - Answer: The date of medical exam.
,What is true about nonforfeiture values? - Answer: They are required by state law to be included in the
policy.
If an annuitant dies before annuitization occurs, what will the beneficiary receive? - Answer: Cash value
of the plan
Upon policy delivery, the agent may be required to obtain any of the following EXCEPT - Answer: Signed
waiver of premium.
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policyowner? - Answer: Third-party ownership
The death benefit in a variable universal life policy - Answer: Depends on the performance of a separate
account.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the
insured, and to whom the benefits will be paid? - Answer: Insuring clause
Which of the following is true for both equity indexed annuities and fixed annuities? - Answer: They
have a guaranteed minimum interest rate.
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy
added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the
surrender value would be income taxable? - Answer: $3,000
The difference between the premiums paid and the cash value would be taxable. In this example, the
difference between the premiums paid ($15,000) and the cash value ($18,000) is $3,000.
Which of the following is NOT typically excluded from life policies? - Answer: Death due to plane crash
for a fare-paying passenger
, A Return of Premium term life policy is written as what type of term coverage? - Answer: Increasing
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an
insurance contract? - Answer: Warranty
A warranty in insurance is a statement guaranteed to be true. When an applicant is applying for an
insurance contract, the statements he or she makes are generally not warranties, but representations.
Representations are statements that are true to the best of the applicant's knowledge.
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What would
be the face amount of the new term policy? - Answer: $50,000
The face of the term policy would be the same as the face amount provided under the whole life policy.
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his
daughter as contingent beneficiary. Under what circumstances could the daughter collect the death
benefit? - Answer: If the primary beneficiary predeceases the insured.
An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1;
however, the insured failed to pay the premium. He died on February 28. How much would the
beneficiary receive from the policy? - Answer: $9,800
In this scenario, the death occurred within the mandatory 30-day grace period. Past due premium would
be subtracted from the face amount of the policy.
If an employer decides to change its life insurance policy to a similar one with a different insurer, which
of the following describes the extent that replacement regulations will be exercised? - Answer:
Replacement regulations will not apply in this situation.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YourExamplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80461 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now