Primerica Practice Test Questions and Complete Solutions Graded A+, Exams of Law

Download Primerica Practice Test Questions and Complete Solutions Graded A+ and more Exams Law in PDF only on Docsity! Primerica Practice Test Questions and Complete Solutions Graded A+ [Document subtitle] Denning [Date] [Course title] The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) - Answer: conditional receipt Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called - Answer: representations An annuity is considered fixed when it does all of the following EXCEPT - Answer: provides the annuitant with an interest rate that is the lesser of the guaranteed or current rate The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called - Answer: continuous premium (straight) life The policy and a copy of the application, along with any riders and amendments, is called the - Answer: entire contract Money borrowed from the policy's cash value is - Answer: not taxable Which of the following annuity products requires an agent to hold a securities license? - Answer: variable annuities Which type of annuity settlement stops when the annuitant dies? - Answer: life income annuity At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty? - Answer: 59.5 Which settlement option guarantees an income for 2 or more recipients for as long as they live - Answer: joint and survivor Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased's business interests? - Answer: buy-sell agreement Who would be allowed catch-up contributions in a qualified plan? - Answer: individuals who are age 50 and older Which of the following types of annuities would be best suited for a retired couple who are seeking income for as long as either lives? - Answer: joint and survivor Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated? - Answer: law of large numbers The MIB is a nonprofit trade association that maintains - Answer: medical information on applicants for life adn health insurance What is the purpose of the grace period in life insurance policies - Answer: to protect the policyowner against an unintentional lapse of the policy What type of permanent insurance allows the policyowner to pay for a policy in a specified period of time, and the policyowner does not have to make any more premium payments for the life of the policy? - Answer: limited payment What does the payor benefit rider protect? - Answer: premium payments for a juvenile policy How long does an employee have to convert group policy coverage to an individual policy without evidence of insurability? - Answer: 31 days If the cash value exceeds the premiums paid in a whole life policy, what are the tax consequences if the policy is surrendered - Answer: the portion that exceeds the premiums paid is taxable Betty is the only beneficiary named on her husband Bob's policy which has a Common Disaster provision. They are in a car wreck, and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit? - Answer: Bob's estate The legal transfer of all or part of a policyowners rights, title or interest is called a(n) - Answer: assignment What do employees covered under a group contract receive? - Answer: certificate of insurance An annuity in which investment growth is dependent on the performance of an index such as the Standard and Poor's 500 is called a(n) - Answer: equity indexed annuity The premium payment mode can be best described as the - Answer: frequency with which the policy premium will be paid All other factors being equal, which of the following types of policies will accumulate cash value at the fastest rate? - Answer: 20-pay life