Exam (elaborations)
Primerica exam 2 Questions with Solutions
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Exam of 5 pages for the course Primerica Life Insurance at Primerica Life Insurance (Primerica exam 2)
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Primerica exam 2A. Option B - answer which option for universal life allows the beneficiary to collect both
the death benefit and cash value upon the death of the insured?
A. option B
B. Corridor option
C. Variable option
D. Option A
B. avoidance - answer the risk management technique that is used to prevent a specific
loss by not exposing yourself too that activity is called?
A. sharing
B. avoidance
C. transfer
D. reduction
C. a limited pay policy - answera policy owner of an adjustable life policy can increase
premium payments and have which of the following?
A. a higher cash value interest rate
B.a higher face amount without proof of insurability
C.a limited pay policy
D.a lower nonforfeiture option
D. the spouse of a retiring insurance producer - answera temporary producer license
could be issued without examination to all the following EXCEPT?
A. the spouse or legal representative of a deceased insurance producer
B. the designee of a licensened insurance producer who enters active duty in the US
Armed Forces
C. the employee of a disabled licensed a producer
D.the spouse of a retiring insurance producer
D.non participating policy
In a nonparticipating the policy pays dividends not to policy owner as with (mutual
insurers) but to stockholders (stock insurers) - answera policy that does not pay
dividends to policy owner is a?
A. participating policy
B. whole life policy
C. mutual life policy
D. not participating policy
C. Premiums - answerall of the following are examples of risk retention EXCEPT?
A. co-payments
, B. Self-insurance
C. Premiums
D. deductibles
Retention - answerplanned assumption of risk or acceptance of responsibility for the
lossb by an insured through the use of deductibles, co-payments or self insurance
C. Limited pay policy - answerthe policy owner of an adjustable life policy can increase
premium payments and have which of the following?
A. a higher cash value interest rate
B. a higher face amount without proof of insurability
C. Limited pay policy
D. a lower nonforfeiture
D. 15 days - answerif an insurer wishes to appoint a producer it must file a notice of
appointment within how many days of the date that the contract is executed
B. ownership
mutual company are owned by policyholders while stock companies are owned by
stockholders - answerwhat is the major difference between a stock company and a
mutual company?
A. Types of ppolicies
B. Ownership
C. Amnt. Of death benefit
D. Number of producers
B. if the primary beneficiary predeceases the insured - answeran individual purchased a
life insurance policy on his life naming his wife is primary beneficiary, and their daughter
as contingent beneficiary. under what circumstance could the daughter collect the death
benefit.
A. if the insured dies from an accident
B. if the primary beneficiary predeceases the insured
C. the primary and contingent beneficiaries share death benefits equally
D. it provides income the beneficiary cannot outlive
the single life option provides a single beneficiary income for the rest of his or her life
upon the death of the beneficiary the payments stop - answerwhich of the following is
true regarding a single life settlement option?
A. payments continue until the entire principal is exhausted
B. proceeds are paid out in a lump sum
C. it provides income for Pa specific Period of time
D. it provides income the beneficiary cannot outlive
D. 3%
insurance companies promise guaranteed minimum on the fixed annuities ( 3% in this
scenario) this means that if the investments draw less than 3 % the company will have
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