PRIMERICA 11

An individual has a $200,000 convertible term life insurance policy. If he chooses, he can

convert to a whole life policy for the same face amount without proof of insurability

What does an annuity protect the annuitant against

living longer than expected

Which of the following is a correct statement about annuities

fixed annuities do not provide protection against inflation

What is the most common name for a single life policy that is designed to insure two or more lives with a standard premium, and that pays the death benefit upon the first death

joint life

Which of the following is not a classification of a hazard

speculative

What happens to the face amount of a whole life policy if the insured reaches the age of 100

the face amount is paid to the insured

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

misrepresentation

Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination

charging the insured higher premiums based on her race

In life insurance, which of the following is not required to have an insurable interest in the insured

the beneficiary

An insurance agent who represents multiple companies on a nonexclusive basis and earns commissions on personal sales is working in what kind of marketing system

independent agency system

In order to get a nonresident license in this state, an agent must

apply and pay a fee to a nonresident state that reciprocates

According to the fair credit reporting act, all of the following statements are true EXCEPT

If an applicant is defined for an insurance policy, he or she has not right to know what was in the report

If the applicant submits the initial premium with an application, which action constitutes acceptance

the underwriters approve the application

Which of the following elements of an insurance contract requires paying premium and providing a statement of good health

consideration

The human life value approach to determining life insurance needs is based upon which of the following ideas

loss of the breadwinners income

In order for a business partner to be eligible for a Keogh plan, he must work full-time and own at least how much of the business

10%