PRIMERICA LIFE INSURANCE EXAM EXAM QUESTIONS

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PRIMERICA LIFE INSURANCE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

• complete contract
• entire contract
• total contract
• aleatory contract

Answer:

• entire contract

the policy, together with the attached application, constitutes the entire contract. This provision limits the use of evidence than the contract and the attached application in a test of the contracts validity. This is a mandatory provision in life insurance

Question 2: what is the name of the first beneficiary listed in a policy?

• primary
• secondary
• tertiary
• contingent

Answer:

• primary

Question 3: a producer is helping a married couple determine the financial needs of their children in the event of one or both should die prematurely. This is a personal use of life insurance known as

• survivorship insurance
• juvenile protection provision
• survivorship protection
• life planning

Answer:

• survivorship protection

life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. This is known as survivor protection Question 4: a Louisiana insurance company ran and advertisement in June 2008. When could the company discard the file on this document?

• June 2013
• June 2012
• June 2011
• June 2009

Answer:

• June 2012

in Louisiana, insurance companies are required to keep files of all advertisements used for 4 years, or until he next examination by the Department Question 5: which of the following would most directly affect the purchasing power of death benefits paid on a fixed annuity?

• company investment performance
• guaranteed minimum payout
• economic inflation

• interest rations

Answer:

• economic inflation

in times of inflation, benefits have less purchasing power. Since costs increase as a result of inflation, more money is required to purchase something that had previously cost less. Likewise, in the event of deflation, the purchasing power of benefits increase. The other options listed would affect the amount of money available to the annuity owner, but they would not actually affect the purchasing power of benefits paid Question 6: the authority granted to an agent through the agent's contract is referred to as

• absolute authority
• express authority
• apparent authority
• implied authority

Answer:

• express authority

express powers are written into the contract between the insurer and the agent Question 7: what policy would be classified as a traditional level premium contract?

Answer:

straight whole life Question 8: which of the following are generally NOT considered when underwriting group insurance?

• the group's past claim experience
• the site of the group
• the insured's medical history
• the nature of the group

Answer:

• the insured's medical history

group life insurance is written on a group, not individual basis. Each individual completes an application that identifies the participant and the beneficiary. Then, the group is judged based on its nature and past claim experience. Generally, medical questions are not necessary

Question 9: In insurance, an offer is usually made when

• an applicant submits an application to the insurer
• the insurer approves the application and receives the initial premium
• the agent hands the policy to the policyholder
• an agent explains a policy to a potential applicant

Answer:

• an applicant submits an application to the insurer

in insurance, the offer is usually made by the applicant in the form of an application. acceptance takes place when an insurer's underwriter approves the application and issues a policy Question 10: all of the following are requirements for life insurance illustrations EXCEPT?

• they may only be used as approved
• they must identify non guaranteed values
• they must differentiate between guaranteed and projected amounts
• they must be part of the contract

Answer:

• they must be part of the contract

an illustration may not be altered by an agent and must clearly state that it is not part of the contract. It is legal to list non guaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values Question 11: The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called

• joint life annuity
• life income with period certain
• life income with refund
• joint and survivorship

Answer:

• life income with period certain

if the annuitant dies before the period certain, the payments continue to a beneficiary or the estate for