Primerica Practice Test-2024 With Best Answers
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
An annuity is considered fixed when it does all of the following EXCEPT -Correct Ans-
provides the annuitant with an interest rate that is the lesser of the guaranteed or
current rate
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
The policy and a copy of the application, along with any riders and amendments, is
called the -Correct Ans-entire contract
Money borrowed from the policy's cash value is -Correct Ans-not taxable
Which of the following annuity products requires an agent to hold a securities license? -
Correct Ans-variable annuities
Which type of annuity settlement stops when the annuitant dies? -Correct Ans-life
income annuity
At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty? -Correct Ans-59.5
, Which settlement option guarantees an income for 2 or more recipients for as long as
they live -Correct Ans-joint and survivor
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? -Correct Ans-buy-sell agreement
Which of the following would be considered a flexible premium policy? -Correct Ans-
universal life
If an annuitant dies during the accumulation period, what will the beneficiary receive? -
Correct Ans-either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered -Correct Ans-
nonadmitted
To prevent people from profiting from a loss, insurers must be certain -Correct Ans-
insurable interest exists
If a misstatement of age is discovered during the processing of a life insurance claim,
what will the insurer do? -Correct Ans-adjusts the death benefit based on the premiums
that were paid
Which of the following allows an insurance company to deny coverage if the insured's
death occurs in a war? -Correct Ans-policy exclusions
Each of the following is a typical characteristic of group life insurance EXCEPT -Correct
Ans-evidence of insurability is usually required
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
An annuity is considered fixed when it does all of the following EXCEPT -Correct Ans-
provides the annuitant with an interest rate that is the lesser of the guaranteed or
current rate
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
The policy and a copy of the application, along with any riders and amendments, is
called the -Correct Ans-entire contract
Money borrowed from the policy's cash value is -Correct Ans-not taxable
Which of the following annuity products requires an agent to hold a securities license? -
Correct Ans-variable annuities
Which type of annuity settlement stops when the annuitant dies? -Correct Ans-life
income annuity
At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty? -Correct Ans-59.5
, Which settlement option guarantees an income for 2 or more recipients for as long as
they live -Correct Ans-joint and survivor
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? -Correct Ans-buy-sell agreement
Which of the following would be considered a flexible premium policy? -Correct Ans-
universal life
If an annuitant dies during the accumulation period, what will the beneficiary receive? -
Correct Ans-either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered -Correct Ans-
nonadmitted
To prevent people from profiting from a loss, insurers must be certain -Correct Ans-
insurable interest exists
If a misstatement of age is discovered during the processing of a life insurance claim,
what will the insurer do? -Correct Ans-adjusts the death benefit based on the premiums
that were paid
Which of the following allows an insurance company to deny coverage if the insured's
death occurs in a war? -Correct Ans-policy exclusions
Each of the following is a typical characteristic of group life insurance EXCEPT -Correct
Ans-evidence of insurability is usually required
