Primerica Life Insurance State Exam RI-2024
Which risk classification is representative of the majority of people in a certain age
group and with similar lifestyles?
1)Declined
2)Preferred
3)Standard
4)Substandard -Correct Ans-Standard
A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount
of premium paid exceeds the amount that would have provided paid-up insurance in
how many years?
1)3 yrs
2)5 yrs
3)7 yrs
4)The life of the policy -Correct Ans-7 Years
An annuity would normally be purchased by an individual who wants to
1)Provide a death benefit to the insuring party
2)Earn a higher rate of interest
3)Create an estate
4)Provide income for retirement -Correct Ans-Provide income for retirement
,If the policy summary for a life insurance policy is not given when the application is
taken, when must the policy summary be given to the policyowner?
1)When policy is delivered
2)Within 15 days of the application date
3)Within 30 days of policy issue
4)When the policy is issued -Correct Ans-When the policy is delivered
When term insurance is added to the main policy to enhance the policy to provide
added benefit or coverage, it is called a
1)Term rider
2)Nonforfeiture option
3)Future income rider
4)Guaranteed insurability rider -Correct Ans-Term rider
Which method of dealing with risk is applied when insurance is purchased
1) Transfer
2)Sharing
3)Avoidance
4)Reduction -Correct Ans-Transfer
S set up an individual retirement account that her employer is now contributing to. Her
employer's contributions are not included in her gross income. What kind of retirement
plan does S have?
, 1)SIMPLE
2)Simplified Employee Pension (SEP)
3)401k
4)HR-10 (Keogh) -Correct Ans-Simplified Employee Pension (SEP)
As it relates to life settlements, the term "owner" means
1)Life settlement broker
2)Life settlement provider
3)The owner of the original life policy
4)The owner of the insurance company -Correct Ans-The owner of the original life policy
An annuitant pays the annuity premium on the 14th of each month. Which of the
following best describes this arrangement?
1)Flexible
2)Lump sum
3)Single
4)Level -Correct Ans-Level
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy
1) A covered Peril Rider
2)An accidental death rider
3)A double indemnity rider
Which risk classification is representative of the majority of people in a certain age
group and with similar lifestyles?
1)Declined
2)Preferred
3)Standard
4)Substandard -Correct Ans-Standard
A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount
of premium paid exceeds the amount that would have provided paid-up insurance in
how many years?
1)3 yrs
2)5 yrs
3)7 yrs
4)The life of the policy -Correct Ans-7 Years
An annuity would normally be purchased by an individual who wants to
1)Provide a death benefit to the insuring party
2)Earn a higher rate of interest
3)Create an estate
4)Provide income for retirement -Correct Ans-Provide income for retirement
,If the policy summary for a life insurance policy is not given when the application is
taken, when must the policy summary be given to the policyowner?
1)When policy is delivered
2)Within 15 days of the application date
3)Within 30 days of policy issue
4)When the policy is issued -Correct Ans-When the policy is delivered
When term insurance is added to the main policy to enhance the policy to provide
added benefit or coverage, it is called a
1)Term rider
2)Nonforfeiture option
3)Future income rider
4)Guaranteed insurability rider -Correct Ans-Term rider
Which method of dealing with risk is applied when insurance is purchased
1) Transfer
2)Sharing
3)Avoidance
4)Reduction -Correct Ans-Transfer
S set up an individual retirement account that her employer is now contributing to. Her
employer's contributions are not included in her gross income. What kind of retirement
plan does S have?
, 1)SIMPLE
2)Simplified Employee Pension (SEP)
3)401k
4)HR-10 (Keogh) -Correct Ans-Simplified Employee Pension (SEP)
As it relates to life settlements, the term "owner" means
1)Life settlement broker
2)Life settlement provider
3)The owner of the original life policy
4)The owner of the insurance company -Correct Ans-The owner of the original life policy
An annuitant pays the annuity premium on the 14th of each month. Which of the
following best describes this arrangement?
1)Flexible
2)Lump sum
3)Single
4)Level -Correct Ans-Level
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy
1) A covered Peril Rider
2)An accidental death rider
3)A double indemnity rider
