PRIMERICA LIFE INSURANCE EXAM VERSION A AND B
NEWEST ACTUAL EXAM COMPLETE 300 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
EXPLANATIONS (VERIFIED ANSWERS) |ALREADY
GRADED A+
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary - ANSWER: The contingent beneficiary
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did
not receive a check from the insurer. From what type of insurer did the insured
purchase the policy?
a. mutual
b. reciprocal
c. nonprofit service organization
d. stock
A. mutual - ANSWER: funds not paid out after paying claims and other operating
costs are returned to the policy owners in the form of a dividend. if all funds are paid
out, no dividends are paid
Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and jogs for 45
minutes each morning. The insured has also eliminated most fatty foods from his
diet. Which method of dealing with risk does this scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
B. reduction - ANSWER: Reduction: the insured's change in lifestyle and habits would
likely reduce the chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial premium
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant
,A. an applicant submits an application to the insurer - ANSWER: in insurance, the
offer is usually made by the applicant in the form of an application. acceptance takes
place when an insurer's underwriter approves the application and issues a policy
the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards - ANSWER: Perils: perils are the causes of loss insured against in an
insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents' insurance license
c. fiduciary contract
d. state provisions - ANSWER: agents contract with the principal; the principal grants
authority to an agent through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement plan? -
ANSWER: It needs IRS approval
Which of the following may NOT be included in an insurance company's
advertisement? - ANSWER: That its policies are covered by a state Guaranty
Association
Which of the following is the most common way to transfer risk? - ANSWER:
Purchase Insurance
Which of the following would provide an underwriter with information concerning
an applicant's health history? - ANSWER: The medical information bureau
A temporary producer license could be issued without examination to all of the
following EXCEPT. - ANSWER: The spouse of a retiring insurance producer
All of the following are duties and responsibilities of producers at the time of
application EXCEPT
A) Change any incorrect statement on the application by personally initialing next to
the corrected statement.
B) Explain the nature and type of any receipt the producer is giving to the applicant
C) Probe beyond the stated questions if the producer feels the applicant is
misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the application -
ANSWER: Change any incorrect statement on the application by personally initialing
next to the corrected statement.
, According to the nonforfeiture law, if the owner decides to surrender a deferred
annuity prior to annuitization, the owner is entitled to which of the following>
A) Guaranteed Surrender Value
B) No Payments
C) Annuity Dividends
D) Full premium refund without any changes - ANSWER: Guaranteed Surrender
Value
Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated?
A) Law of Masses
B) Law of Averages
C) Law of Group Evaluation
D) Law of Large Numbers - ANSWER: Law of Large Numbers
When the insured selects the extended term nonforfeiture option, the cash value
will be used to purchase term insurance with what face amount?
a) The same as the original policy minus the cash value
b) Equal to the original policy for as long as the cash values will purchase.
c)In lesser amounts for the remaining policy term of age 100.
d)Equal to the cash value surrendered from the policy - ANSWER: Equal to the
original policy for as long as the cash values will purchase:
With this option, the cash value is used as a single premium to purchase the same
face amount as the original policy for as long a period of time as the cash will buy at
the insured's current age.
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?
a) Interest-sensitive whole life
b)Life annuity with period certain
c)Increasing term
d)Limited pay whole life - ANSWER: Limited pay whole life:
Premium payments will cease at her age 65, but coverage will continue to her death
or age 100.
An applicant wants to buy a policy that has a cash value element. Which type should
she buy?
a) Term
b) Permanent
c)Stock
d)Investment - ANSWER: Permanent:
Unlike term insurance, permanent insurance provides lifetime death protection and
a savings or cash value option.
NEWEST ACTUAL EXAM COMPLETE 300 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
EXPLANATIONS (VERIFIED ANSWERS) |ALREADY
GRADED A+
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary - ANSWER: The contingent beneficiary
An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did
not receive a check from the insurer. From what type of insurer did the insured
purchase the policy?
a. mutual
b. reciprocal
c. nonprofit service organization
d. stock
A. mutual - ANSWER: funds not paid out after paying claims and other operating
costs are returned to the policy owners in the form of a dividend. if all funds are paid
out, no dividends are paid
Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and jogs for 45
minutes each morning. The insured has also eliminated most fatty foods from his
diet. Which method of dealing with risk does this scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
B. reduction - ANSWER: Reduction: the insured's change in lifestyle and habits would
likely reduce the chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial premium
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant
,A. an applicant submits an application to the insurer - ANSWER: in insurance, the
offer is usually made by the applicant in the form of an application. acceptance takes
place when an insurer's underwriter approves the application and issues a policy
the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards - ANSWER: Perils: perils are the causes of loss insured against in an
insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents' insurance license
c. fiduciary contract
d. state provisions - ANSWER: agents contract with the principal; the principal grants
authority to an agent through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement plan? -
ANSWER: It needs IRS approval
Which of the following may NOT be included in an insurance company's
advertisement? - ANSWER: That its policies are covered by a state Guaranty
Association
Which of the following is the most common way to transfer risk? - ANSWER:
Purchase Insurance
Which of the following would provide an underwriter with information concerning
an applicant's health history? - ANSWER: The medical information bureau
A temporary producer license could be issued without examination to all of the
following EXCEPT. - ANSWER: The spouse of a retiring insurance producer
All of the following are duties and responsibilities of producers at the time of
application EXCEPT
A) Change any incorrect statement on the application by personally initialing next to
the corrected statement.
B) Explain the nature and type of any receipt the producer is giving to the applicant
C) Probe beyond the stated questions if the producer feels the applicant is
misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the application -
ANSWER: Change any incorrect statement on the application by personally initialing
next to the corrected statement.
, According to the nonforfeiture law, if the owner decides to surrender a deferred
annuity prior to annuitization, the owner is entitled to which of the following>
A) Guaranteed Surrender Value
B) No Payments
C) Annuity Dividends
D) Full premium refund without any changes - ANSWER: Guaranteed Surrender
Value
Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated?
A) Law of Masses
B) Law of Averages
C) Law of Group Evaluation
D) Law of Large Numbers - ANSWER: Law of Large Numbers
When the insured selects the extended term nonforfeiture option, the cash value
will be used to purchase term insurance with what face amount?
a) The same as the original policy minus the cash value
b) Equal to the original policy for as long as the cash values will purchase.
c)In lesser amounts for the remaining policy term of age 100.
d)Equal to the cash value surrendered from the policy - ANSWER: Equal to the
original policy for as long as the cash values will purchase:
With this option, the cash value is used as a single premium to purchase the same
face amount as the original policy for as long a period of time as the cash will buy at
the insured's current age.
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?
a) Interest-sensitive whole life
b)Life annuity with period certain
c)Increasing term
d)Limited pay whole life - ANSWER: Limited pay whole life:
Premium payments will cease at her age 65, but coverage will continue to her death
or age 100.
An applicant wants to buy a policy that has a cash value element. Which type should
she buy?
a) Term
b) Permanent
c)Stock
d)Investment - ANSWER: Permanent:
Unlike term insurance, permanent insurance provides lifetime death protection and
a savings or cash value option.
