Primerica life insurance practice Exam || Most Recent Exam
Actual Complete Real Exam Questions And Correct Answers
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which of the following factors is NOT considered by an underwriter
when determining the premium rates for an individual seeking
insurance?
a. medical history
b. sex
c. age
d. race
D. race
age, medical history, and sex provide sound statistical date for
determining the
probability of loss. Race, religion, sexual orientation, etc. are the
factors that cannot be used because there is not sound statistical
data to show that they effect the probability of loss; therefore, they
are considered to be discriminatory
,in insurance transactions, fiduciary responsibility means
a. handling insurer funds in a trust capacity
b. maintaining good credit record
c. being liable with respect to payment of claims
d. commingling premiums with agents personal funds
A. handling insurer funds in a trust capacity
an agents fiduciary responsibility includes handling insurer funds in a
trust capacity
the authority granted to an agent through the agent's contract is referred to
as
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
B. express authority
express powers are written into the contract between the insurer and the
agent
,insurance policies are not drawn up though negotiations, and an insured
has little to say about its provisions. what contract characteristic does
this describe?
a. unilateral
b. conditional
c. personal
d. adhesion
D. adhesion
a contract of adhesion is prepared by only the insurer; the insured's
only option is to accept or reject the policy as its written
if an applicant for a life insurance policy and person to be insured by the
policy are two different people, the underwriter would be concerned
about
a. which individual will pay the premium
b. whether an insurable interest exists between the individuals
c. the gender of applicant
d. the type of policy requested
B. whether an insurable interest exists between the individuals
an insurable interest must exist at the time of the policy is issued. Some
relationships are automatically presumed to qualify as an insurable
interest. ex: spouses, parents, children, and certain business
relationships
, which of the following insurers are owned by stockholders who have the
usual rights of ownership, including the right of voting?
a. reciprocal
b. fraternal
c. stock
d. mutual
C. stock
only stock insurance companies are owned and controlled by
stockholders
which of the following best describes the concept that the insured
pays a small amount of premium for a large amount of risk on the part
of the insurance company?
a. subrogation
b. warranty
c. aleatory
d. adhesion
C. aleatory
an insurance contract is an aleatory contract in that it requires a
relatively small amount of premium for a large risk
Actual Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Newest Exam || Just!! `2026-2027
which of the following factors is NOT considered by an underwriter
when determining the premium rates for an individual seeking
insurance?
a. medical history
b. sex
c. age
d. race
D. race
age, medical history, and sex provide sound statistical date for
determining the
probability of loss. Race, religion, sexual orientation, etc. are the
factors that cannot be used because there is not sound statistical
data to show that they effect the probability of loss; therefore, they
are considered to be discriminatory
,in insurance transactions, fiduciary responsibility means
a. handling insurer funds in a trust capacity
b. maintaining good credit record
c. being liable with respect to payment of claims
d. commingling premiums with agents personal funds
A. handling insurer funds in a trust capacity
an agents fiduciary responsibility includes handling insurer funds in a
trust capacity
the authority granted to an agent through the agent's contract is referred to
as
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
B. express authority
express powers are written into the contract between the insurer and the
agent
,insurance policies are not drawn up though negotiations, and an insured
has little to say about its provisions. what contract characteristic does
this describe?
a. unilateral
b. conditional
c. personal
d. adhesion
D. adhesion
a contract of adhesion is prepared by only the insurer; the insured's
only option is to accept or reject the policy as its written
if an applicant for a life insurance policy and person to be insured by the
policy are two different people, the underwriter would be concerned
about
a. which individual will pay the premium
b. whether an insurable interest exists between the individuals
c. the gender of applicant
d. the type of policy requested
B. whether an insurable interest exists between the individuals
an insurable interest must exist at the time of the policy is issued. Some
relationships are automatically presumed to qualify as an insurable
interest. ex: spouses, parents, children, and certain business
relationships
, which of the following insurers are owned by stockholders who have the
usual rights of ownership, including the right of voting?
a. reciprocal
b. fraternal
c. stock
d. mutual
C. stock
only stock insurance companies are owned and controlled by
stockholders
which of the following best describes the concept that the insured
pays a small amount of premium for a large amount of risk on the part
of the insurance company?
a. subrogation
b. warranty
c. aleatory
d. adhesion
C. aleatory
an insurance contract is an aleatory contract in that it requires a
relatively small amount of premium for a large risk
