Life Insurance Primerica Exam @ 2023
Which will be included in a policy summary? - Answer Premium amounts and surrender
values
Why should the producer personally deliver the policy when the first premium has
already been paid? - Answer To help the insured understand all aspects of the contract
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - Answer Conditional
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant - Answer With the policy
If an applicant for a life insurance policy is found to be a substandard risk, the insurance
company is most likely to - Answer Charge a higher premium
Which of the following best details the underwriting process for life insurance? - Answer
Selection, classification, and rating of risks
Upon policy delivery, the producer may be required to obtain any of the following
EXCEPT - Answer Signed waiver of premium
Which of the following is a risk classification used by underwriters for insurance? -
Answer Standard
Which of the following documents delivered to the policy owner includes information
about premium amounts, cash values, surrender values, and death benefits for specific
policy years? - Answer A policy summary
When both parties to a contract must perform certain duties and follow rules of conduct
to make the contract enforceable, the contract is - Answer Conditional
Representations are written or oral statements made by the applicant that are - Answer
Considered true to the best of the applicant's knowledge
Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a - Answer Premium receipt
,All of the following are duties and responsibilities of producers at the time of application
EXCEPT - Answer Change any incorrect statement on the application by personally
initialing next to the corrected statement (must be initialed by the applicant)
In insurance policies, the insured is not legally bound to any particular action in the
insurance contract, but the insurer is legally obligated to pay losses covered by the
policy. What contract element does this describe? - Answer Unilateral
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? - Answer
Consideration
Which of the following is TRUE regarding the premium in term policies? - Answer The
premium is level
Which of the following terms best describe the coverage provided by term policies, as
compared to any other form of protection? - Answer Greatest
Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial
resources? - Answer Term
A Return of Premium term life policy is written as what type of term coverage? - Answer
Increasing
All of the following are true regarding a decreasing term policy EXCEPT - Answer The
payable premium amount steadily declines throughout the duration of the contract
What does "level" refer to in level term insurance? - Answer Face amount
Which best describes annually renewable term insurance? - Answer It is level term
insurance
What characteristic makes whole life permanent protection? - Answer Coverage until
death or age 100
Which of the following types of policies will provide permanent protection? - Answer
Whole life
A Straight Life policy has what type of premium? - Answer A level annual premium for
the life of the insured
Which statement is NOT true regarding a Straight Life Policy? - Answer It's premium
steadily decreases over time, in response to its growing cash value
, Which of the following policies would be classified as a traditional level premium
contract? - Answer Straight Life
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age of 100
is called - Answer Single premium whole life
Your client wants both protection and savings from the insurance, and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client? -
Answer Limited pay whole life
Which statement is NOT true regarding a Straight Life policy? - Answer It's premium
steadily decreases over time, in response to its growing cash value
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answer For 20 years or until death, whichever
occurs first
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
The death protection component of Universal Life Insurance is always - Answer
Annually Renewable Term
The policy owner of a Universal Life Policy may skip paying the premium and the policy
will not lapse as long as - Answer The policy contains sufficient cash value to cover the
cost of insurance
Which of the following policies would have an IRS required corridor or gap between the
cash value and the death benefit? - Answer Universal Life- Option A
The death benefit under the Universal Life Option B - Answer Gradually increases each
year by the amount that the cash value increases
What kind of policy allows withdrawals or partial surrenders? - Answer Universal Life
What is the purpose of establishing the target premium for a universal life policy? -
Answer To keep the policy in force
Which of the following best defines target premium in a universal life policy? - Answer
The recommended amount to keep the policy in force throughout its lifetime
Which of the following would help prevent a universal life policy from lapsing? - Answer
Target premium
Which will be included in a policy summary? - Answer Premium amounts and surrender
values
Why should the producer personally deliver the policy when the first premium has
already been paid? - Answer To help the insured understand all aspects of the contract
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - Answer Conditional
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant - Answer With the policy
If an applicant for a life insurance policy is found to be a substandard risk, the insurance
company is most likely to - Answer Charge a higher premium
Which of the following best details the underwriting process for life insurance? - Answer
Selection, classification, and rating of risks
Upon policy delivery, the producer may be required to obtain any of the following
EXCEPT - Answer Signed waiver of premium
Which of the following is a risk classification used by underwriters for insurance? -
Answer Standard
Which of the following documents delivered to the policy owner includes information
about premium amounts, cash values, surrender values, and death benefits for specific
policy years? - Answer A policy summary
When both parties to a contract must perform certain duties and follow rules of conduct
to make the contract enforceable, the contract is - Answer Conditional
Representations are written or oral statements made by the applicant that are - Answer
Considered true to the best of the applicant's knowledge
Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a - Answer Premium receipt
,All of the following are duties and responsibilities of producers at the time of application
EXCEPT - Answer Change any incorrect statement on the application by personally
initialing next to the corrected statement (must be initialed by the applicant)
In insurance policies, the insured is not legally bound to any particular action in the
insurance contract, but the insurer is legally obligated to pay losses covered by the
policy. What contract element does this describe? - Answer Unilateral
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? - Answer
Consideration
Which of the following is TRUE regarding the premium in term policies? - Answer The
premium is level
Which of the following terms best describe the coverage provided by term policies, as
compared to any other form of protection? - Answer Greatest
Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial
resources? - Answer Term
A Return of Premium term life policy is written as what type of term coverage? - Answer
Increasing
All of the following are true regarding a decreasing term policy EXCEPT - Answer The
payable premium amount steadily declines throughout the duration of the contract
What does "level" refer to in level term insurance? - Answer Face amount
Which best describes annually renewable term insurance? - Answer It is level term
insurance
What characteristic makes whole life permanent protection? - Answer Coverage until
death or age 100
Which of the following types of policies will provide permanent protection? - Answer
Whole life
A Straight Life policy has what type of premium? - Answer A level annual premium for
the life of the insured
Which statement is NOT true regarding a Straight Life Policy? - Answer It's premium
steadily decreases over time, in response to its growing cash value
, Which of the following policies would be classified as a traditional level premium
contract? - Answer Straight Life
An insurance policy that only requires a payment of premium at its inception, provides
insurance protection for the life of the insured, and matures at the insured's age of 100
is called - Answer Single premium whole life
Your client wants both protection and savings from the insurance, and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client? -
Answer Limited pay whole life
Which statement is NOT true regarding a Straight Life policy? - Answer It's premium
steadily decreases over time, in response to its growing cash value
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answer For 20 years or until death, whichever
occurs first
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
The death protection component of Universal Life Insurance is always - Answer
Annually Renewable Term
The policy owner of a Universal Life Policy may skip paying the premium and the policy
will not lapse as long as - Answer The policy contains sufficient cash value to cover the
cost of insurance
Which of the following policies would have an IRS required corridor or gap between the
cash value and the death benefit? - Answer Universal Life- Option A
The death benefit under the Universal Life Option B - Answer Gradually increases each
year by the amount that the cash value increases
What kind of policy allows withdrawals or partial surrenders? - Answer Universal Life
What is the purpose of establishing the target premium for a universal life policy? -
Answer To keep the policy in force
Which of the following best defines target premium in a universal life policy? - Answer
The recommended amount to keep the policy in force throughout its lifetime
Which of the following would help prevent a universal life policy from lapsing? - Answer
Target premium
