Primerica Practice Exam . All Questions and
Correct Verified Answers. Already Graded A+
1. An annuity that is purchased with a lump sum premium and whose benefits begin after 12
months is called a:
A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Level premium variable annuity.
D. Flexible premium fixed annuity. - ANSWER>>Single premium deferred annuity
2. A technique used to determine the amount of life insurance needed by focusing on the
projected earning potential of an insured is called the:
A. Needs approach.
B. Future income option.
C. Human life value approach.
D. Life income approach. - ANSWER>>Human life value approach
3. When replacing a policy the producer must present the applicant with a Notice Regarding
Replacement of Life Insurance:
A. At the policy delivery date.
B. 7 days after the initial meeting.
C. On the date the underwriter approves the policy.
D. At the time of taking the application. - ANSWER>>At the time of taking the application
4. The possibility of a financial loss incurred by a life insurance company for the premature
death of an insured is known as a:
A. Peril.
B. Risk.
C. Hazard.
D. Loss. - ANSWER>>Risk
5. The Medical Information Bureau (MIB) is a nonprofit trade association that maintains:
A. Motorist information on applicants for life and health insurance.
B. Medical information on applicants for life and health insurance,
C. Maternity information on female applicants for life and health insurance.
, D. Classifications of risk for previous policies. - ANSWER>>medical information on applicants
for life and health insurance
6. A person who signs a fraudulent claim form may be found guilty of:
A. Rebating.
B. Perjury.
C. Misdemeanor.
D. Misrepresentation. - ANSWER>>perjury
7. Which policy is a combination of annual renewable term insurance and interest-sensitive
cash value?
A. Universal life
B. Adjustable life
C. Renewable term life
D. Interest-sensitive whole life - ANSWER>>universal life
8. The right to a full refund of premiums for insureds age 60 or older is:
A. 10 days.
B. 14 days.
C. 20 days.
D. 30 days. - ANSWER>>30 days
9. The premium modes can be best described as the:
A. Amount of premium payment.
B. Method of premium payment.
C. Frequency of premium payment.
D. Calculation of premium payment. - ANSWER>>Frequency of premium payment
10. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - ANSWER>>Concealment
11. A tax-sheltered annuity (TSA) is a qualified plan available for:
A. Employees of corporations.
B. Self-employed persons.
C. Nonprofit organizations.
Correct Verified Answers. Already Graded A+
1. An annuity that is purchased with a lump sum premium and whose benefits begin after 12
months is called a:
A. Single premium immediate annuity.
B. Single premium deferred annuity.
C. Level premium variable annuity.
D. Flexible premium fixed annuity. - ANSWER>>Single premium deferred annuity
2. A technique used to determine the amount of life insurance needed by focusing on the
projected earning potential of an insured is called the:
A. Needs approach.
B. Future income option.
C. Human life value approach.
D. Life income approach. - ANSWER>>Human life value approach
3. When replacing a policy the producer must present the applicant with a Notice Regarding
Replacement of Life Insurance:
A. At the policy delivery date.
B. 7 days after the initial meeting.
C. On the date the underwriter approves the policy.
D. At the time of taking the application. - ANSWER>>At the time of taking the application
4. The possibility of a financial loss incurred by a life insurance company for the premature
death of an insured is known as a:
A. Peril.
B. Risk.
C. Hazard.
D. Loss. - ANSWER>>Risk
5. The Medical Information Bureau (MIB) is a nonprofit trade association that maintains:
A. Motorist information on applicants for life and health insurance.
B. Medical information on applicants for life and health insurance,
C. Maternity information on female applicants for life and health insurance.
, D. Classifications of risk for previous policies. - ANSWER>>medical information on applicants
for life and health insurance
6. A person who signs a fraudulent claim form may be found guilty of:
A. Rebating.
B. Perjury.
C. Misdemeanor.
D. Misrepresentation. - ANSWER>>perjury
7. Which policy is a combination of annual renewable term insurance and interest-sensitive
cash value?
A. Universal life
B. Adjustable life
C. Renewable term life
D. Interest-sensitive whole life - ANSWER>>universal life
8. The right to a full refund of premiums for insureds age 60 or older is:
A. 10 days.
B. 14 days.
C. 20 days.
D. 30 days. - ANSWER>>30 days
9. The premium modes can be best described as the:
A. Amount of premium payment.
B. Method of premium payment.
C. Frequency of premium payment.
D. Calculation of premium payment. - ANSWER>>Frequency of premium payment
10. Intentionally omitting a history of heart problems on an application is:
A. Prudent.
B. Misrepresentation.
C. Consideration.
D. Concealment. - ANSWER>>Concealment
11. A tax-sheltered annuity (TSA) is a qualified plan available for:
A. Employees of corporations.
B. Self-employed persons.
C. Nonprofit organizations.
