Download PRIMERICA LIFE INSURANCE EXA / Q-BANK / COMPLETE ACCURATE QUIZZES WITH VERIFIED ANSWERS, 2 and more Exams Nursing in PDF only on Docsity!
PRIMERICA LIFE INSURANCE EXA / Q-
BANK / COMPLETE ACCURATE QUIZZES
WITH VERIFIED ANSWERS, 2025 / 2026.
_____________Quiz____________? 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 -
Answer ✓✓
A. mutual 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 _____________Quiz____________? 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 -
Answer ✓✓
B. reduction the insured's change in lifestyle and habits would likely reduce the chances of health problems _____________Quiz____________? 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 -
Answer ✓✓
A. an applicant submits an application to the insurer 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 _____________Quiz____________? the causes of loss insured against in an insurance policy are known as a. perils b. losses c. risks d. hazards -
a company is domestic when doing business within the state in which it is incorporated _____________Quiz____________? which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? a. medical history b. sex c. age d. race -
Answer ✓✓
D. race age, medical history, and sex provide sound statistical date for determining the probability of loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is not sound statistical data to show that they effect the probability of loss; therefore, they are considered to be discriminatory _____________Quiz____________? in insurance transactions, fiduciary responsibility means a. handling insurer funds in a trust capacity b. maintaining good credit record c. being liable with respect to payment of claims d. commingling premiums with agents personal funds -
Answer ✓✓
A. handling insurer funds in a trust capacity an agents fiduciary responsibility includes handling insurer funds in a trust capacity
_____________Quiz____________? the authority granted to an agent through the agent's contract is referred to as a. absolute authority b. express authority c. apparent authority d. implied authority -
Answer ✓✓
B. express authority express powers are written into the contract between the insurer and the agent _____________Quiz____________? insurance policies are not drawn up though negotiations, and an insured has little to say about its provisions. what contract characteristic does this describe? a. unilateral b. conditional c. personal d. adhesion -
Answer ✓✓
D. adhesion a contract of adhesion is prepared by only the insurer; the insured's only option is to accept or reject the policy as its written _____________Quiz____________?
a. legal purpose b. contract of adhesion c. acceptance d. consideration -
Answer ✓✓
D. consideration consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application _____________Quiz____________? which of the following would qualify as a competent party in an insurance contract? a. the applicant is intoxicated at the time of application b. the applicant is 12 year old student c. the applicant is under the influence of a mind-impairing medication at the time of application d. the applicant has a prior felony conviction -
Answer ✓✓
D. the applicant has a prior felony conviction when an insurer and insured enter into a contract, both parties must be legal of age and mentally competent. It is legal for a person convicted of a felony to buy an insurance contract. An intoxicated person, however, may not be mentally competent, a 12 year old student is considered to be underage in most states and a person under mind-impairing medication most likely would not be mentally competent _____________Quiz____________?
an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a. representation b. adhesion c. consideration d. good health -
Answer ✓✓
C. consideration the binding force in any contract is consideration. consideration on the part of the insureds the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the even of loss _____________Quiz____________? which of the following is a primary source of information used for insurance underwriting? a. application b. applicant interviews c. medical records. d. private investigations -
Answer ✓✓
A. application the application contains most of the information used for underwriting purposes. this is why its completeness and accurarcy are so critical _____________Quiz____________? which of the following is the best reason to purchase life insurance rather than annuities?
a. disclose commissions earned from the sale of the policy b. explain the policy provisions, riders, and exclusions c. collect any premium due d. explain the rating procedures if the policy is rated differently than applied for -
Answer ✓✓
A. disclose commissions earned fro the sale of the policy a producer must explain policy provisions, exclusions, and riders at the time of the delivery, as well as the rating procedures especially if the policy is rated differently than applied for. The producer must also collect any due premium and have the insured sign the statement go continued good health _____________Quiz____________? if an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about a. which individual will pay the premium b. whether an insurable interest exists between the individuals c. the gender of applicant d. the type of policy requested -
Answer ✓✓
B. whether an insurable interest exists between the individuals an insurable interest must exist at the time of the policy is issued. Some relationships are automatically presumed to qualify as an insurable interest. ex: spouses, parents, children, and certain business relationships _____________Quiz____________?
When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by a. a physician of the applicant's choice and at his expense b. a home office underwriter c. a paramedic or examining physician at the insurer's expense d. the agent -
Answer ✓✓
C. a paramedic or examining physician at the insurer's expense the applicant may be allowed to select the physician or paramedic facility to perform the examination. The insurer pays the cost of such an examination _____________Quiz____________? The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called a. expenses b. legal reserve c. dividend accumulation d. premium tax -
Answer ✓✓
A. expenses loading is another term for expenses. Net premium (mortality minus interest earned) plus expenses (or loading) equal the gross premium _____________Quiz____________?
a. premium paid are deductible as a business expense b. benefits received are considered income taxable c. buy-sell agreements pay in the event of a medical emergency d. buy-sell agreements are normally funded with a life insurance expectancy -
Answer ✓✓
D. buy-sell agreements are normally funded with life insurance expectancy a buy-sell agreements is simply a contract that establishes what willl be done with a business in the event that an owner dies. Buy-sell agreements are normally funded with a life insurance policy _____________Quiz____________? Who may complete a paramedical report? a. an underwriter b. a nursing assistant c. a registered nurse d. a spouse -
Answer ✓✓
C. a registered nurse paramedical reports are completed by paramedics or registered nurses. Full medical expectations are reserved for those wanting higher coverage or for those who have more complex medical history _____________Quiz____________? the term "illustrations" in a life insurance policy refers to a. a presentation of non guaranteed elements of a policy
b. a depiction of policy benefits and guarantees c. pictures accompanying a policy d. charts and graphs -
Answer ✓✓
A. a presentation of non guaranteed elements of a policy the term "illustrations" means presentation of depiction that includes non guaranteed elements of a policy of individual of group life insurance over a period of years _____________Quiz____________? which is generally true regarding insureds who have been classified as preferred risks? a. they can borrow higher amounts off of their policies b. they can decide when to pay their monthly premiums c. they keep a higher percentage of any interest earned on their policies d. their premiums are lower -
Answer ✓✓
D. their premiums are lower the preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. These individuals qualify to lower premiums than those in other categories _____________Quiz____________? all of the following are requirements for life insurance illustrations EXCEPT? a. they may only be used as approved b. they must identify non guaranteed values c. they must differentiate between guaranteed and projected amounts
c. graded premium whole life d. single premium whole life -
Answer ✓✓
D. single premium whole life single premium whole life requires the entire premium to be paid in one lump sum at the policy's inception _____________Quiz____________? Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die? a. ordinary life b. joint life c. decreasing term d. whole life -
Answer ✓✓
B. joint life a joint life policy covering 2 lives would be the least expensive because the premiums are based on an average age, and it would pay a death benefit only at the first death _____________Quiz____________? an individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of the life insurance policy would be best suited to this situation? a. universal life
b. whole life c. decreasing term d. variable life -
Answer ✓✓
C. decreasing term a decreasing term policy's face amount decreases as the amount of debt is reduced _____________Quiz____________? which of the following are generally NOT considered when underwriting group insurance? a. the group's past claim experience b. the site of the group c. the insured's medical history d. the nature of the group -
Answer ✓✓
C. the insured's medical history group life insurance is written on a group, not individual basis. Each individual completes an application that identifies the participant and the beneficiary. Then, the group is judged based on its nature and past claim experience. Generally, medical questions are not necessary _____________Quiz____________? what are the 2 components of a universal policy? a. insurance and investments b. mortality cost and interest c. separate account and policy loans
d. until the policyowner's age 100, when policy matures -
Answer ✓✓
A. for 20 years or until death, whichever occurs first under a 20-pay life policy, all of the premiums necessary to cause the policy to endow at the insured's age 100 are paid during the first 20 years; however, if the insured dies before all of the planned premiums are paid, the beneficiary will receive the face amount as a death benefit _____________Quiz____________? A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy a. required a premium increase each renewal b. built cash value c. required proof of insurability ever year d. decreased death benefit each renewal -
Answer ✓✓
A. required a premium increase each renewal annually renewable term policies premiums are adjusted each year to the insured's attained age, however, the policy may be guaranteed renewable. Death benefits remain level, and switch any term policy, there are no cash values _____________Quiz____________? Both Universal Life and Variable Universal Life have a a. flexible premium b. level fixed premium c. decreasing premium
d. increasing premium -
Answer ✓✓
A. flexible premium variable universal life, like universal life itself, has a flexible premium that can be increased or decrease as the policyowner chooses, so long as there is enough value in the policy to fund the death benefit _____________Quiz____________? all other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy? a. half the amount b. lower c. higher d. as high -
Answer ✓✓
B. lower survivorship life is much the same as joint life in that it insures 2 or more lives for a premium that is based on a joint age. the major difference is that survivorship life pays on the last death rather than upon the first death. Since the death benefit is not paid until the last death, the joint life expectancy in a sense is extended, residing in a lower premium thant that which is typically charged for a joint life _____________Quiz____________? what policy would be classified as a traditional level premium contract? -
Answer ✓✓
straight whole life
