PRIMERICA LIFE INSURANCE EXAM WITH
100% CORRECT ANSWERS 2023
What effect will the long term care rider have on the death benefit of a life insurance policy If
LTC benefits were paid to the insured - ANSWER>>Reduce the death benefit
An insured and his spouse recently had a child which of the following riders would allow the
couple to insure the child for a limited period of time at a specific amount -
ANSWER>>Children's term rider (Lost children to be added to coverage for a limited period of
time for a specific amount)
Which type Insurance policies provides pure life insurance protection without a savings
element - ANSWER>>Term
A licensee fails to earn the required CE credits by the expiration of the 90-day grace period
and the license has been terminated for education how much time does the licensee have to
meet the CE requirements to be considered for license reinstatement? - ANSWER>>1 year
Which of the following best defines But unfair trade practices of rebating -
ANSWER>>Offering an inducement or something of value not specified in the policy
In life insurance underwriting all of the following are true regarding HIV test except -
ANSWER>>Person may be denied coverage based solely on the presence of HIV
When a whole life policy is surrendered for it's nonforfeiture value what is the.automatic
options - ANSWER>>Extended term
What affect will The long-term care rider have on the death benefit of the life insurance
policy if LTC benefits were paid to the insured - ANSWER>>Reduce death benefit
An annuitant pays the annuity premium on the 14th of each month which of the following
best describes the arrangement - ANSWER>>Level
An agent tells and ensure that if he replaces his current insurance policy with a new one his
dividends will be higher and his premiums will be slightly lower the policy however would not
,offer either one of those things what type of misrepresentation is being committed -
ANSWER>>Twisting
The commissioner has determined that a producer is in eligible for appointment by an insurer
the commissioner must notify the insure within - ANSWER>>Five days
Who is the annuity owner - ANSWER>>The person who purchases the annuity
All of the following are true of annually renewable term insurance except...
A)The policy must be renewed no matter what happens to one's health
B) Proof of insurability must be provided at each renewal
C)The premium increase is each year
D) The death benefit remains level - ANSWER>>Proof of insurability must be provided at each
renewal
All the following statements about mutual insurance companies are correct except.
A) policy dividends issued by mutual companies are guaranteed and not taxable
B) dividends allow policyholders to share a mutual companies divisible surplus
C) dividends are return of unused premiums
D) mutual companies issue policies referred to as participating. - ANSWER>>A
How is a licensees date of continuing education credit review determined - ANSWER>>by the
month and date of birth
What is the max civil fine a guilty party may pay for a single violation of the insurance code -
ANSWER>>$5,000
What type of an interest rate is guaranteed in universal life policies. - ANSWER>>Adjustable
interest rate
, In contrasting stock insurers with mutual insurers which statement is true. - ANSWER>>Stock
insurer are owned by the shareholders and issue nonparticipating policies
If an insured purchases an insurance policy with a large deductible what risk management
technique is the insured exercising - ANSWER>>Retention
What is the cost of coverage based on for group life insurance - ANSWER>>The average age
and the ratio of men to women
For a contract to be enforceable by law, the purpose of the contract must be -
ANSWER>>Legal and not against public policyholders
Which of the following would not be eligible for coverage under key person. -
ANSWER>>owner of a shop, owner is the principal, not a key person
Guaranteeing future dividends is considered to be an unfair or deceptive act known as -
ANSWER>>Misrepresentation (to make any false or misleading statements regarding the
dividends to be received on any insurance policy)
An insurance agent visit a potential client and explain various types of policies. The customer
displays a lack of interest so the agent guarantees higher dividends than he knows would be
possible which term describes what the agent has done. - ANSWER>>Misrepresentation
If a loan request is for payment of due premiums on the policy how soon must the insurer
issue a loan - ANSWER>>Immediately
When the owner of a participating whole life policy uses the dividend to provide more life
insurance coverage which of the following dividend options is being used - ANSWER>>Paid up
additions (used to purchase more paid up insurance each year thereby increasing the death
benefit)
According to the life insurance replacement regulations which of the following would be an
example of policy replacement - ANSWER>>A policy is reissued with a reduction in cash value
(
Who is responsible for the content in form of insurance advertisements - ANSWER>>The
whose policies are being advertised
100% CORRECT ANSWERS 2023
What effect will the long term care rider have on the death benefit of a life insurance policy If
LTC benefits were paid to the insured - ANSWER>>Reduce the death benefit
An insured and his spouse recently had a child which of the following riders would allow the
couple to insure the child for a limited period of time at a specific amount -
ANSWER>>Children's term rider (Lost children to be added to coverage for a limited period of
time for a specific amount)
Which type Insurance policies provides pure life insurance protection without a savings
element - ANSWER>>Term
A licensee fails to earn the required CE credits by the expiration of the 90-day grace period
and the license has been terminated for education how much time does the licensee have to
meet the CE requirements to be considered for license reinstatement? - ANSWER>>1 year
Which of the following best defines But unfair trade practices of rebating -
ANSWER>>Offering an inducement or something of value not specified in the policy
In life insurance underwriting all of the following are true regarding HIV test except -
ANSWER>>Person may be denied coverage based solely on the presence of HIV
When a whole life policy is surrendered for it's nonforfeiture value what is the.automatic
options - ANSWER>>Extended term
What affect will The long-term care rider have on the death benefit of the life insurance
policy if LTC benefits were paid to the insured - ANSWER>>Reduce death benefit
An annuitant pays the annuity premium on the 14th of each month which of the following
best describes the arrangement - ANSWER>>Level
An agent tells and ensure that if he replaces his current insurance policy with a new one his
dividends will be higher and his premiums will be slightly lower the policy however would not
,offer either one of those things what type of misrepresentation is being committed -
ANSWER>>Twisting
The commissioner has determined that a producer is in eligible for appointment by an insurer
the commissioner must notify the insure within - ANSWER>>Five days
Who is the annuity owner - ANSWER>>The person who purchases the annuity
All of the following are true of annually renewable term insurance except...
A)The policy must be renewed no matter what happens to one's health
B) Proof of insurability must be provided at each renewal
C)The premium increase is each year
D) The death benefit remains level - ANSWER>>Proof of insurability must be provided at each
renewal
All the following statements about mutual insurance companies are correct except.
A) policy dividends issued by mutual companies are guaranteed and not taxable
B) dividends allow policyholders to share a mutual companies divisible surplus
C) dividends are return of unused premiums
D) mutual companies issue policies referred to as participating. - ANSWER>>A
How is a licensees date of continuing education credit review determined - ANSWER>>by the
month and date of birth
What is the max civil fine a guilty party may pay for a single violation of the insurance code -
ANSWER>>$5,000
What type of an interest rate is guaranteed in universal life policies. - ANSWER>>Adjustable
interest rate
, In contrasting stock insurers with mutual insurers which statement is true. - ANSWER>>Stock
insurer are owned by the shareholders and issue nonparticipating policies
If an insured purchases an insurance policy with a large deductible what risk management
technique is the insured exercising - ANSWER>>Retention
What is the cost of coverage based on for group life insurance - ANSWER>>The average age
and the ratio of men to women
For a contract to be enforceable by law, the purpose of the contract must be -
ANSWER>>Legal and not against public policyholders
Which of the following would not be eligible for coverage under key person. -
ANSWER>>owner of a shop, owner is the principal, not a key person
Guaranteeing future dividends is considered to be an unfair or deceptive act known as -
ANSWER>>Misrepresentation (to make any false or misleading statements regarding the
dividends to be received on any insurance policy)
An insurance agent visit a potential client and explain various types of policies. The customer
displays a lack of interest so the agent guarantees higher dividends than he knows would be
possible which term describes what the agent has done. - ANSWER>>Misrepresentation
If a loan request is for payment of due premiums on the policy how soon must the insurer
issue a loan - ANSWER>>Immediately
When the owner of a participating whole life policy uses the dividend to provide more life
insurance coverage which of the following dividend options is being used - ANSWER>>Paid up
additions (used to purchase more paid up insurance each year thereby increasing the death
benefit)
According to the life insurance replacement regulations which of the following would be an
example of policy replacement - ANSWER>>A policy is reissued with a reduction in cash value
(
Who is responsible for the content in form of insurance advertisements - ANSWER>>The
whose policies are being advertised
