Exam (elaborations)
Primerica Exam Review Questions with Complete Solutions Graded A+
- Course
- Institution
Primerica Exam Review Questions with Complete Solutions Graded A+
[Show more]
Content preview
Primerica ExamReview Questions
and Complete
Solutions Graded
A+
Denning [Date] [Course title]
,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 insured most likely have? - Answer: Universal life
All of the following are examples of third-party ownership of a life insurance policy EXCEPT - Answer: An
insured borrows money from the back and makes a collateral assignment of a part of the death benefit
to secure the loan.
Which statement is NOT true regarding a Straight Life policy? - Answer: Its premium steadily decreases
over time, in response to its growing cash value.
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in
an automobile accident. How much will his wife receive from the policy? - Answer: $100,000
A person takes out a loan in order to pay off his house. He dies several years later, having paid off only a
small portion of the debt. Which of the following is true? - Answer: If the lender has credit insurance,
this amount will be paid to the lender.
Two individuals are in the same risk and age class; yet, they are charged different rates of their
insurance policies die to an insignificant factor. What is this called? - Answer: Discrimination
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional
protection until his children finished college. He discovered that his policy - Answer: Required a
premium increase each renewal.
If a consumer requests additional information concerning an investigation consumer report, how long
does the insurer or reporting agency have to comply? - Answer: 5 days
,How is the Insurance Guaranty Association funded? - Answer: By its members-authorized insurers
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly
payments. What type of life insurance policy would be best suited to this situation? - Answer:
Decreasing term
After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income
Benefit rider. Which of the following benefits will he receive? - Answer: Monthly premium waiver and
monthly income
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT -
Answer: Dividends from a mutual insurer.
The type of policy that can be changed from one that does not accumulate cash value to the one that
does is a - Answer: Convertible Term Policy.
After its issuance, the temporary work authority expires after how many days - Answer: 180 days not 60
All of the following would be considered an insurance transaction EXCEPT - Answer: Obtaining an
insurance license.
The requirement that agents must account for all insurance funds collected, and are not permitted to
comingle those funds with their own is known as - Answer: Fiduciary responsibility.
What is the purpose of a fixed-period settlement option? - Answer: To provide a guaranteed income for
a certain amount of time
During policy replacement, the replacing insurer must notify existing insurers within what time period? -
Answer: 5 business days
What significance did U.S. vs. South-Eastern Underwriters have on the insurance industry? - Answer: It
reversed the decision of Paul vs. Virginia, determining that insurance is interstate commerce and should
be regulated federally.
, Items stipulated in the contract that the insurer will not provide coverage for are found in the - Answer:
Exclusions clause.
When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture
option, the cash value will be used to purchase term insurance that has a face amount - Answer: Equal
to the original policy for as long a period of time that the cash values will purchase.
All of the following are characteristics of group life insurance EXCEPT - Answer: Premiums are
determined by the age, sex and occupation of each individual certificate holder.
An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date? - Answer: The date of medical exam
For a retirement plan to be qualified, it must be designed for the benefit of - Answer: Employees.
Which of the following statements about a life insurance policy would be allowed in an insurance
advertisement? - Answer: This is a term life insurance policy.
Which of the following is a generic consumer publication that explains life insurance in general terms in
order to assist the applicant in the decision-making process? - Answer: Buyer's Guide
Which of the following employees insured under a group life plan would be allowed to convert to
individual insurance of the same coverage once the plan is terminated? - Answer: Those who have been
insured under the plan for at least 5 years
The interest earned on policy dividends is - Answer: taxable
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a
specific index, such as the Consumer Price Index, is called - Answer: Cost of living rider.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YourExamplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78121 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now