Primerica exam - Study guides, Class notes & Summaries

Guaranteed insurability optionAnswer - An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? Both the principal and interest will be liquidated over a selected period of time.Answer - Which of the following best describes fixed-period settlement option? ...

Primerica exam stimulator study guide with complete verified solutions 2025.

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe? a) Unilateral b) Conditional c) Personal d) Adhesion - Adhesion An insurance policy that only requires a payment of premium at its inception, provides insurance pro...

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be - Answer- Authorized A participating insurance policy may do which of the following? - Answer- Pay dividends to the policy owner An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the in...

Primerica Exam |Question and Answer| 100% Correct Which of the following is not ordinary life insurance? a. A life paid up to 65 policy b. A 30 year decreasing term policy c. A group life insurance policy d. A 20-year endowment policy *Ans* c. A group life insurance policy A failure to communicate information which a party to an insurance contract knows and should communicate, is called an act of: a. Concealment b. Intimidation c. Warranty d. Coercion *Ans* a. Concealment When a...

1. An annuity that is purchased with a lump sum premium and whose benefits begin after 12 months is called a: A. Single premium immediate annuity. B. Single premium deferred annuity. C. Level premium variable annuity. D. Flexible premium fixed annuity. - Answer--Single premium deferred annuity 2. A technique used to determine the amount of life insurance needed by focusing on the projected earning potential of an insured is called the: A. Needs approach. B. Future income option. C...

A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called Accelerated Benefit provision. Which of the following would NOT fall into the category of costs associated with death? The expense of a vacation for surviving family members A set of legal or regulatory conditions that affect an insurer's ability to collect premiums commensurate with the level o...

401 K Plan - A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment - Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit - allows the insured to withdraw some of the death benefits when the insured is terminally ill Accidental Death Ben...

Primerica Exam Review – Questions & Answers