Life insurance practice exam primerica-2024
The receipt given to a life insurance applicant when the application is completed and
the initial premium is received is called a(n) -Correct Ans-Conditional receipt.
Statements in the application for insurance that are believed to be true to the best of
the applicant's knowledge are called -Correct Ans-Representations.
All of the following apply to the waiver of premium rider EXCEPT -Correct Ans-There is
no charge for this provision.
An annuity is considered fixed when it does all of the following EXCEPT -Correct Ans-
Provides the annuitant with either the guaranteed or current interest rate, whichever is
less.
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called -Correct Ans-Continuous premium (straight)
life.
A beneficiary who has a vested interest in the proceeds of a life insurance policy is the -
Correct Ans-Irrevocable beneficiary.
The insured died four months after a $100,000 life insurance policy was issued and
delivered. At the time of the claim, the company noticed the original application was
missing some key information. What will the company do? -Correct Ans-Pay the death
claim because the insurer waived the right to obtain the missing information
The policy and a copy of the application, along with any riders and amendments, is
called the -Correct Ans-Entire contract.
, At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty? -Correct Ans-59 ½
Which settlement option guarantees an income for two or more recipients for as long as
they live? -Correct Ans-Joint and Survivor
Which type of policy allows the insured to change the amount of the death benefit, the
amount of premium, or the type of coverage as their needs change? -Correct Ans-
Adjustable life
To prevent individuals from profiting from a loss, insurance companies must be certain
that -Correct Ans-Insurable interest exists.
If a misstatement of age is discovered during the processing of a life insurance claim,
what will the insurance company do? -Correct Ans-Adjust the death benefit based on
the premiums that were paid.
Each of the following is a typical characteristic of group life insurance EXCEPT -Correct
Ans-Evidence of insurability is usually required.
A life settlement option that pays out the death benefit incrementally, in a specified
amount until all of the proceeds are exhausted is called -Correct Ans-Fixed-amount
installments
A life insurance death benefit paid in a lump sum to a beneficiary is -Correct Ans-Not
subject to any taxes.
Information collected from employment records, credit reports or other sources that
includes written or oral information concerning credit, character, reputation or habits is
called a(n) -Correct Ans-Investigative Consumer Report.
The receipt given to a life insurance applicant when the application is completed and
the initial premium is received is called a(n) -Correct Ans-Conditional receipt.
Statements in the application for insurance that are believed to be true to the best of
the applicant's knowledge are called -Correct Ans-Representations.
All of the following apply to the waiver of premium rider EXCEPT -Correct Ans-There is
no charge for this provision.
An annuity is considered fixed when it does all of the following EXCEPT -Correct Ans-
Provides the annuitant with either the guaranteed or current interest rate, whichever is
less.
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called -Correct Ans-Continuous premium (straight)
life.
A beneficiary who has a vested interest in the proceeds of a life insurance policy is the -
Correct Ans-Irrevocable beneficiary.
The insured died four months after a $100,000 life insurance policy was issued and
delivered. At the time of the claim, the company noticed the original application was
missing some key information. What will the company do? -Correct Ans-Pay the death
claim because the insurer waived the right to obtain the missing information
The policy and a copy of the application, along with any riders and amendments, is
called the -Correct Ans-Entire contract.
, At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty? -Correct Ans-59 ½
Which settlement option guarantees an income for two or more recipients for as long as
they live? -Correct Ans-Joint and Survivor
Which type of policy allows the insured to change the amount of the death benefit, the
amount of premium, or the type of coverage as their needs change? -Correct Ans-
Adjustable life
To prevent individuals from profiting from a loss, insurance companies must be certain
that -Correct Ans-Insurable interest exists.
If a misstatement of age is discovered during the processing of a life insurance claim,
what will the insurance company do? -Correct Ans-Adjust the death benefit based on
the premiums that were paid.
Each of the following is a typical characteristic of group life insurance EXCEPT -Correct
Ans-Evidence of insurability is usually required.
A life settlement option that pays out the death benefit incrementally, in a specified
amount until all of the proceeds are exhausted is called -Correct Ans-Fixed-amount
installments
A life insurance death benefit paid in a lump sum to a beneficiary is -Correct Ans-Not
subject to any taxes.
Information collected from employment records, credit reports or other sources that
includes written or oral information concerning credit, character, reputation or habits is
called a(n) -Correct Ans-Investigative Consumer Report.
