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Primerica Life insurance exam FL Chapter 2 with complete verified solutions 2025.
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Primerica Life insurance exam FL Chapter 2 with complete verified solutions 2025.
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Primerica Life insurance exam FLChapter 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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