Download Primerica Practice Test and more Exams Advanced Education in PDF only on Docsity!
Primerica Practice Test
- The receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n): conditional receipt
- Statements in the application for insurance that are believed to be true to the best of the applicant's knowledge are called: representations
- An annuity is considered fixed when it does all of the following EXCEPT:
- provides the annuitant with an interest rate that is the lesser of the guaranteed or current rate 4.The most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called: continuous premium (straight) life
- The policy and a copy of the application, along with any riders and amend- ments, is called the: entire contract
6.Money borrowed from the policy's cash value is: not taxable
- Which of the following annuity products requires an agent to hold a securi- ties license?: variable annuities 8.Which type of annuity settlement stops when the annuitant dies?: life income annuity
- At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty?: 59. 10.Which settlement option guarantees an income for 2 or more recipients for as long as they live: joint and survivor 11.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?: buy- sell agreement 12. Which of the following would be considered a flexible premium policy?: - universal life
18.Each of the following is a typical characteristic of group life insurance EXCEPT: evidence of insurability is usually required 19.A life settlement opinion that pays out the death benefit incrementally, in a specified amount until all of the proceeds are exhausted, is called: - fixed-amount installments 20.A life insurance death benefit paid in a lump sum to a beneficiary is: not subject to any taxes
21. Which of the follow is NOT a nonforfeiture option in whole life policies?: - accumulation at interest 22.Which of the following indicates the person upon whose life the annuity income amount is determined?: annuitant 23.An annuity that is purchased with a lump-sum payment, and that begins income payments within one year is a: single premium immediate annuity
24.Which statement is INCORRECT concerning policy dividends?: the insurer may guarantee dividends 25.What is the risk classification for those who are insurable, but have a higher than average risk?: substandard 26.Which of the following features of the Equity Indexed Whole Life policy is NOT fixed?: cash value growth 27.An insurance agent represents the: insurer 28.The transfer of a possible financial loss to another party refers to: insurance 29.Underwriting is the process of: determining the company's risk regarding a proposed insured 30.An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered: delivered 31.This part of the application provides information about an applicant's
37.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?: joint and survivor 38.Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?: law of large numbers 39.The MIB is a nonprofit trade association that maintains: medical information on applicants for life adn health insurance 40.What is the purpose of the grace period in life insurance policies: to protect the policyowner against an unintentional lapse of the policy 41.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?: limited payment 42.What does the payor benefit rider protect?: premium payments for a juvenile policy
43.How long does an employee have to convert group policy coverage to an individual policy without evidence of insurability?: 31 days 44.If the cash value exceeds the premiums paid in a whole life policy, what are the tax consequences if the policy is surrendered: the portion that exceeds the premiums paid is taxable 45.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?: Bob's estate 46.The legal transfer of all or part of a policyowners rights, title or interest is called a(n): assignment 47.What do employees covered under a group contract receive?: certificate of insurance 48.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):
