Primerica

What is the purpose of the grace period in life insurance policies ?

To protect the policyowner against an unintentional lapse of policy

Which of the following annuity products requires an agent to hold a securities license

Variable annuities

And annuity in which investment growth is dependent on the performance of an index such as the Standard and Poor's 500 it's called in

Equity indexed annuity

Each of the following is a typical characteristic of a group life insurance except

Evidence of insurability is usually required

Which of the following allows an insurance company to deny coverage if the insured's death occurs in war?

Policy exclusions

An annuity is considered fixed when it does all of the following except

Provides the annuitant with an interest rate that is the lesser of the guaranteed or current rate

Statements in the Application for insurance that are believed to be true to the best of the applicants knowledge are called

Representations

At age 25 an individual purchased a decreasing term policy. What happens to the coverage and the premiums as the insured get older?

The coverage decreases but the premiums stay the same.

All other factors being equal, which of the following types of policies will accumulate cash value at the fastest rate?

20-pay life

How long does an employee have to convert group policy coverage to an individual policy without evidence of insurability

31 days

Which of the following retirement plans is a special tax favored plan for nonprofit, charitable, educational or religious groups?

403(b) Tax-sheltered Annuity (TDAs)

At what age can a participant receive distributions from a qualified plan without incurring a 10% penalty

59 1/2

The "pay in" phase of the annuity is known as what period?

Accumulation period

Which type of policy allows the insured to change the amount of the death benefit, the amount of premium, or type of coverage as their needs change?

Adjustable life

If a miss statement of age is discovered during the process of a life insurance claim, what will the insurer do?

Adjusts the death benefit based on the premiums that were paid

This part of the application provides information about an applicant's finical condition and character as well as the purpose of sale and how long the agent has known the applicant:

Agents Report

Which of the following indicates the person upon whose life the annuity income amount is determined?

Annuitant

The legal transfer of all or part of the policy owners right title or interest is called in

Assignment

Betty is the only beneficiary named on her husband Bob's policy which is a Common Disaster provision. They are in a car wreck and Bob dies instantly. Betty lives for 29 days. Who will receive the death benefit ?

Bob's estate

Two business partners own life insurance on each other. If one dies,which of the following contracts will allow the surviving partner to use the death benefit to purchase the deceased business interests

Buy-sell agreement

What do employees covered under a group contract receive?

Certificate of insurance

The receipt given to a life insurance applicant when the application is complete and the initial premium is received is called

Conditional receipt

The most common type of whole life insurance we are premiums are payable over the whole life of their insured to age 100 it's called

Continuous premium (Straight) life

An insurer mails an insurance policy to a new policyowner. When the insurer relinquished control of the policy, the policy is considered

Delivered

For an insurance contract, the principle of utmost good faith means

Each party relies upon the truthfulness of the other

If an annuitant dies during the accumulation., What will the beneficiary receive?

Either the cash value or the premiums paid, whichever is greater

The policy and a copy of the application along with any riders and amendments is called the

Entire contract

Which of the following is a nonforfeiture option in whole life policies?

Extended Term, Cash Surrender Value, Reduced Paid-up Insurance

A life settlement option that pays out the death benefit incrementally, in a specific amount until all of the proceeds are exhausted, is called

Fixed-amount installments

An agent delivers a policy to an insured and 9days later the insured returns the policy and wants a complete refund. What provision covers this circumstance?

Free look

The premium payment mode can be best described as

Frequency with which the policy premium will be paid

To prevent people from profiting from a loss, insurers must be certain

Insurable interest exists

The transfer of all possible finical loss to another party refers to

Insurance

An insurance agent represents the

Insurer

Which of the following types of annuities would be best suited for a retired couple who are seeking income for as long as either lives?

Joint and Survivor

Which settlement option guarantees and income for two or more recipients for as long as they live

Joint and survivor

A whole life product that converts two lives and provides payment of death benefit on the death of the first insured is called

Joint life

Which type of annuity settlement stops when the annuitant dies

Life income annuity

What type of permanent insurance allows the policy owner to pay for a policy in a specified period of time and the policy owner does not have to make any more premium payments for the life of the policy

Limited payment

The MIB is a non profit trade association that maintains

Medical information on applicants for life and health insurance

Any insurer who is not approved to do business in the state is considered

Nonadmitted

A life insurance death benefit paid in a lump sum to beneficiary is

Not subjected to any taxes

Money borrowed from the policy's cash value is

Not taxable

What does the payor benefit rider protect

Premium payments for a juvenile policy

An annuity that is purchased with a lump-sum payment and that begins income payments within one year is a

Single Premium Immediate Annuity

What risk classification for those who are insurable but have a higher that average risk?

Substandard

Which statement is INCORRECT concerning policy dividends ?

The insurer my guarantee dividends.

If the cash value exceeds the premiums paid in a whole life policy what are the tax consequences if the policy is surrendered

The portion that exceeds the premium paid is taxable

Under weighting is the process of

Determining the company's risk reguardong a proposed insured