PRIMERICA LIFE AND INSURANCE EXAM 2024 |
ACCURATE CURRENTLY TESTING VERSION WITH
A STUDY GUIDE AND KNOWLEDGE FLASHCARDS |
ACCURATE AND VERIFIED FOR GUARANTEED PASS
| LATEST UPDATE
The xauthority xgranted xto xan xagent xthrough xthe xagent's xcontract xis xreferred xto xas
a. Absolute xauthority
b. Express xauthority
c. Apparent xauthority
d. Implied xauthority
B. xExpress xauthority
express xpowers xare xwritten xinto xthe xcontract xbetween xthe xinsurer xand xthe xagent
Insurance xpolicies xare xnot xdrawn xup xthough xnegotiations, xand xan xinsured xhas xlittle xto
xsay xabout xits xprovisions. xWhat xcontract xcharacteristic xdoes xthis xdescribe?
A. xUnilateral
b. Conditional
c. Personal
d. Adhesion
D. xAdhesion
a xcontract xof xadhesion xis xprepared xby xonly xthe xinsurer; xthe xinsured's xonly xoption
xis xto xaccept xor xreject xthe xpolicy xas xits xwritten
Which xof xthe xfollowing xinsurers xare xowned xby xstockholders xwho xhave xthe xusual
xrights xof xownership, xincluding xthe xright xof xvoting?
A. xReciprocal
b. Fraternal
c. Stock
d. Mutual
C. xStock
only xstock xinsurance xcompanies xare xowned xand xcontrolled xby xstockholders
Which xof xthe xfollowing xbest xdescribes xthe xconcept xthat xthe xinsured xpays xa xsmall
xamount xof
,premium xfor xa xlarge xamount xof xrisk xon xthe xpart xof xthe xinsurance xcompany?
A. xSubrogation
,b. Warranty
c. Aleatory
d. Adhesion
C. xAleatory
an xinsurance xcontract xis xan xaleatory xcontract xin xthat xit xrequires xa xrelatively xsmall
xamount xof xpremium xfor xa xlarge xrisk
When xan xinsured xmakes xtruthful xstatements xon xthe xapplication xfor xinsurance xand
xpays xthe xrequired xpremium, xit xis xknown xas xwhich xof xthe xfollowing?
A. xLegal xpurpose
b. Contract xof xadhesion
c. Acceptance
d. Consideration
D. xConsideration
consideration xis xsomething xof xvalue xthat xeach xparty xgives xto xthe xother. xThe
xconsideration xon xthe xpart xof xthe xinsured xis xthe xpayment xof xpremium xand xthe
xrepresentations xmade xin xthe xapplication
Which xof xthe xfollowing xwould xqualify xas xa xcompetent xparty xin xan xinsurance xcontract?
A. xThe xapplicant xis xintoxicated xat xthe xtime xof xapplication
b. The xapplicant xis x12 xyear xold xstudent
c. The xapplicant xis xunder xthe xinfluence xof xa xmind-impairing xmedication xat xthe xtime xof
xapplication
d. The xapplicant xhas xa xprior xfelony xconviction
D. xThe xapplicant xhas xa xprior xfelony xconviction
when xan xinsurer xand xinsured xenter xinto xa xcontract, xboth xparties xmust xbe xlegal xof
xage xand xmentally xcompetent. xIt xis xlegal xfor xa xperson xconvicted xof xa xfelony xto
xbuy xan xinsurance xcontract. xAn xintoxicated xperson, xhowever, xmay xnot xbe xmentally
xcompetent, xa x12 xyear xold xstudent xis xconsidered xto xbe xunderage xin xmost xstates
xand xa xperson xunder xmind-impairing xmedication xmost xlikely xwould xnot xbe xmentally
xcompetent
An xinsurer xneglects xto xpay xa xlegitimate xclaim xthat xis xcovered xunder xthe xterms xof
xthe xpolicy. xWhich xof xthe xfollowing xinsurance xprinciples xhas xthe xinsurer xviolated?
A. xRepresentation
b. Adhesion
c. Consideration
d. Good xhealth
, C. xConsideration
the xbinding xforce xin xany xcontract xis xconsideration. xConsideration xon xthe xpart xof
xthe xinsureds xthe xpayment xof xpremiums xand xthe xhealth xrepresentations xmade xin
xthe xapplication. xConsideration xon xthe xpart xof xthe xinsurer xis xthe xpromise xto xpay
xin xthe xeven xof xloss
Which xof xthe xfollowing xis xa xprimary xsource xof xinformation xused xfor xinsurance
xunderwriting?
A. xApplication
b. xApplicant xinterviews
c. xMedical xrecords.
D. xPrivate xinvestigations
A. xApplication
the xapplication xcontains xmost xof xthe xinformation xused xfor xunderwriting xpurposes.
xThis xis xwhy xits xcompleteness xand xaccurarcy xare xso xcritical
An xinsured xpurchased xan xinsurance xpolicy x5 xyears xago. xLast xyear, xshe xreceived xa
xdividend xcheck xfrom xthe xinsurance xcompany xthat xwas xnot xtaxable. xThis xyear, xshe
xdid xnot xreceive xa xcheck xfrom xthe xinsurer. xFrom xwhat xtype xof xinsurer xdid xthe
xinsured xpurchase xthe xpolicy?
A. xMutual
b. Reciprocal
c. Nonprofit xservice xorganization
d. Stock
A. xMutual
funds xnot xpaid xout xafter xpaying xclaims xand xother xoperating xcosts xare xreturned xto
xthe xpolicy xowners xin xthe xform xof xa xdividend. xIf xall xfunds xare xpaid xout, xno
xdividends xare xpaid
Following xa xcareer xchange, xan xinsured xis xno xlonger xrequired xto xperform xmany
xphysical xactivities, xso xhe xhas ximplemented xa xprogram xwhere xhe xwalks xand xjogs
xfor x45 xminutes xeach xmorning. xThe xinsured xhas xalso xeliminated xmost xfatty xfoods
xfrom xhis xdiet. xWhich xmethod xof xdealing xwith xrisk xdoes xthis xscenario xdescribe?
A. xRetention
b. Reduction
c. Transfer
d. Avoidance
ACCURATE CURRENTLY TESTING VERSION WITH
A STUDY GUIDE AND KNOWLEDGE FLASHCARDS |
ACCURATE AND VERIFIED FOR GUARANTEED PASS
| LATEST UPDATE
The xauthority xgranted xto xan xagent xthrough xthe xagent's xcontract xis xreferred xto xas
a. Absolute xauthority
b. Express xauthority
c. Apparent xauthority
d. Implied xauthority
B. xExpress xauthority
express xpowers xare xwritten xinto xthe xcontract xbetween xthe xinsurer xand xthe xagent
Insurance xpolicies xare xnot xdrawn xup xthough xnegotiations, xand xan xinsured xhas xlittle xto
xsay xabout xits xprovisions. xWhat xcontract xcharacteristic xdoes xthis xdescribe?
A. xUnilateral
b. Conditional
c. Personal
d. Adhesion
D. xAdhesion
a xcontract xof xadhesion xis xprepared xby xonly xthe xinsurer; xthe xinsured's xonly xoption
xis xto xaccept xor xreject xthe xpolicy xas xits xwritten
Which xof xthe xfollowing xinsurers xare xowned xby xstockholders xwho xhave xthe xusual
xrights xof xownership, xincluding xthe xright xof xvoting?
A. xReciprocal
b. Fraternal
c. Stock
d. Mutual
C. xStock
only xstock xinsurance xcompanies xare xowned xand xcontrolled xby xstockholders
Which xof xthe xfollowing xbest xdescribes xthe xconcept xthat xthe xinsured xpays xa xsmall
xamount xof
,premium xfor xa xlarge xamount xof xrisk xon xthe xpart xof xthe xinsurance xcompany?
A. xSubrogation
,b. Warranty
c. Aleatory
d. Adhesion
C. xAleatory
an xinsurance xcontract xis xan xaleatory xcontract xin xthat xit xrequires xa xrelatively xsmall
xamount xof xpremium xfor xa xlarge xrisk
When xan xinsured xmakes xtruthful xstatements xon xthe xapplication xfor xinsurance xand
xpays xthe xrequired xpremium, xit xis xknown xas xwhich xof xthe xfollowing?
A. xLegal xpurpose
b. Contract xof xadhesion
c. Acceptance
d. Consideration
D. xConsideration
consideration xis xsomething xof xvalue xthat xeach xparty xgives xto xthe xother. xThe
xconsideration xon xthe xpart xof xthe xinsured xis xthe xpayment xof xpremium xand xthe
xrepresentations xmade xin xthe xapplication
Which xof xthe xfollowing xwould xqualify xas xa xcompetent xparty xin xan xinsurance xcontract?
A. xThe xapplicant xis xintoxicated xat xthe xtime xof xapplication
b. The xapplicant xis x12 xyear xold xstudent
c. The xapplicant xis xunder xthe xinfluence xof xa xmind-impairing xmedication xat xthe xtime xof
xapplication
d. The xapplicant xhas xa xprior xfelony xconviction
D. xThe xapplicant xhas xa xprior xfelony xconviction
when xan xinsurer xand xinsured xenter xinto xa xcontract, xboth xparties xmust xbe xlegal xof
xage xand xmentally xcompetent. xIt xis xlegal xfor xa xperson xconvicted xof xa xfelony xto
xbuy xan xinsurance xcontract. xAn xintoxicated xperson, xhowever, xmay xnot xbe xmentally
xcompetent, xa x12 xyear xold xstudent xis xconsidered xto xbe xunderage xin xmost xstates
xand xa xperson xunder xmind-impairing xmedication xmost xlikely xwould xnot xbe xmentally
xcompetent
An xinsurer xneglects xto xpay xa xlegitimate xclaim xthat xis xcovered xunder xthe xterms xof
xthe xpolicy. xWhich xof xthe xfollowing xinsurance xprinciples xhas xthe xinsurer xviolated?
A. xRepresentation
b. Adhesion
c. Consideration
d. Good xhealth
, C. xConsideration
the xbinding xforce xin xany xcontract xis xconsideration. xConsideration xon xthe xpart xof
xthe xinsureds xthe xpayment xof xpremiums xand xthe xhealth xrepresentations xmade xin
xthe xapplication. xConsideration xon xthe xpart xof xthe xinsurer xis xthe xpromise xto xpay
xin xthe xeven xof xloss
Which xof xthe xfollowing xis xa xprimary xsource xof xinformation xused xfor xinsurance
xunderwriting?
A. xApplication
b. xApplicant xinterviews
c. xMedical xrecords.
D. xPrivate xinvestigations
A. xApplication
the xapplication xcontains xmost xof xthe xinformation xused xfor xunderwriting xpurposes.
xThis xis xwhy xits xcompleteness xand xaccurarcy xare xso xcritical
An xinsured xpurchased xan xinsurance xpolicy x5 xyears xago. xLast xyear, xshe xreceived xa
xdividend xcheck xfrom xthe xinsurance xcompany xthat xwas xnot xtaxable. xThis xyear, xshe
xdid xnot xreceive xa xcheck xfrom xthe xinsurer. xFrom xwhat xtype xof xinsurer xdid xthe
xinsured xpurchase xthe xpolicy?
A. xMutual
b. Reciprocal
c. Nonprofit xservice xorganization
d. Stock
A. xMutual
funds xnot xpaid xout xafter xpaying xclaims xand xother xoperating xcosts xare xreturned xto
xthe xpolicy xowners xin xthe xform xof xa xdividend. xIf xall xfunds xare xpaid xout, xno
xdividends xare xpaid
Following xa xcareer xchange, xan xinsured xis xno xlonger xrequired xto xperform xmany
xphysical xactivities, xso xhe xhas ximplemented xa xprogram xwhere xhe xwalks xand xjogs
xfor x45 xminutes xeach xmorning. xThe xinsured xhas xalso xeliminated xmost xfatty xfoods
xfrom xhis xdiet. xWhich xmethod xof xdealing xwith xrisk xdoes xthis xscenario xdescribe?
A. xRetention
b. Reduction
c. Transfer
d. Avoidance
