Primerica Life insurance exam FL Chapter 2 with complete verified solutions 2025
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Course
Primerica
Institution
Primerica
elements of a legal contract
1. Agreement - offer and acceptance
2. Consideration
3. Competent parties
4. Legal purpose
aleatory contract
a contract where the values exchanged may not be equal but depend on an uncertain event
Unilateral Contract
only one of the parties to the co...
Primerica Life insurance exam FL
Chapter 2 with complete verified
solutions 2025
elements of a legal contract - answer 1. Agreement - offer and
acceptance
2. Consideration
3. Competent parties
4. Legal purpose
aleatory contract - answer a contract where the values exchanged
may not be equal but depend on an uncertain event
Unilateral Contract - answer only one of the parties to the contract
is legally bound to do anything. The insured makes no legally
binding promises.
conditional contract - answer Requires that certain conditions must
be met by the policyowner and the company.
warranty - answer is an absolute true statement upon which the
validity of the insurance policy depends.
representations - answer statements believed to be true to the best
of one's knowledge, but they are not guaranteed to be true
misrepresentations - answer Untrue statements on the application
and could void the contract
, Term Insurance - answer Is a temporary protection because it only
provides coverage for a specific period of time. Provides pure death
protection. No cash value.
Types of term life insurance - answer Level term, decreasing term,
increasing term.
level term insurance - answer The most common type of temporary
protection purchased. The word level refers to the death benefit
that does not change throughout the life of the policy. Provides a
level death benefit and level premium
annually Renewable term (ART, under LEVEL TERM) - answer is the
purest form of term insurance . the term benefit remains level( in
that sense its a level term policy) and the policy may be guaranteed
to renewable each year without proof of insurability.
decreasing term policy - answer policy that features a level
premium and a death benefit that decreases each year over the
duration of the policy.
Primarily used when the amount of the needed protection is time
sensitive or decreases in time (eg---to insure the payment of a
mortgage or other debts if the insured dies prematurely b/c amount
of coverage decreases as outstanding bal. dec. each year; usually
not RENEWABLE
Increasing Term Policy - answer level premium, as do all policies,
but the face amount increases every year of the policy term.
Ideal for inflation
Return of Premium - answer is an increasing term insurance policy
that pays an additional death benefit to the beneficiary equal to the
amount of the premiums paid.
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