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Life Insurance Licensing Test, Primerica Questions and Answers
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Life Insurance Licensing Test, Primerica
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Life Insurance Licensing Test, PrimericaWhich of the following situations requires a person to be licensed? - answer Receive
commissions
The settlement option that would provide a beneficiary with the largest monthly income
from a life insurance death benefit is called - answer Straight life
Which of the following contains the company's promise to pay the benefits of a policy -
answer Insuring clause
The provision that allows an insurer to deduct premiums from the policy's cash value to
prevent the policy from lapsing is a(n) - answer Automatic premium loan
A whole life insurance policy in which the cash value builds faster than a 7-PAY whole
life policy is called a(n) - answer Modified endowment contract
Which life nonforfeiture option provides lifetime coverage? - answer Reduced paid-up
Four individuals, each 35 years old, purchase the life insurance policies listed below.
Which policy will have the largest cash value after 10 years? - answer20-pay life
All marketing communications, regardless of their source, are the responsibility of the -
answer Insurance company
Which of the following is NOT one of the three nonforfeiture options? - answer Interest
only
When an insured sells their life insurance policy to another party in order to get money
for terminal illness expenses, it is known as a(n) - answer Vatical settlement
Which rider would allow additional insurance at specified ages, dates or events without
evidence of insurability? - answer Guaranteed insurability
The continuing education requirement for an Indiana life agent is - answer24 hours
every 2 years
Which of the following life insurance riders would NOT respond to a loss due to
sickness? - answerMultiple Indemnity
An inducement given to an insured in the sale of insurance products that is not specified
in the policy is called - answerRebating
, If a policy is reinstated, insurers may require all the following EXCEPT - answerAttained
age premiums
Which provision of a life insurance policy states that the application is part of the
contract? - answerEntire contract clause
If a cash settlement is chosen, for a death benefit payment, a check for the amount of
the benefit must be sent to the beneficiary no later than - answer2 months
Whole life insurance differs from term insurance with regard to - answerCash value
accumulation
The "pay-in" time for deferred annuities is known as the - answerAccumulation period
Today each of the individuals listed below purchases a single premium, immediate
annuity and chooses the straight life pay-out option. Assuming the same interest rate,
who would receive the largest monthly check? - answerA 60-year old man
Persons accused of Insurance Code violations are entitled to a hearing within how
many days? - answer30 days
An equity indexed annuity - answerOffers a potentially higher return than fixed annuities
Which rider may increase the value of the policy due to an increase in the Consumer
Price Index (CPI)? - answerCost of living
An annuity that is purchased with a lump-sum premium and benefits that begin after 12
months would be a - answerSingle premium deferred annuity
Which action by a producer may NOT be grounds for a non-renewal or revocation of
license? - answerfailing to meet sales quotas
Which of the following does NOT allow contributions after age 70 1/2? -
answerTraditional IRA
All of the following are unfair claims practices EXCEPT - answerDenying a claim not
covered under the policy
The main source of underwriting information for an insurer is the - answerApplication
In determining life insurance risks, an underwriter may classify risks as any of the
following EXCEPT - answerTraditional
Which plan would be appropriate for the employees of a non-profit organization? -
answerTSA
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