Primerica

Which of the following would NOT be considered an exception to the National Do Not Call List?

Calls based from outside of the United States

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash Option

Which of the following features of the Indexed Whole Life policy is NOT fixed?

Cash value growth

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common Disaster Clause

Which of the following is a requirement that must be satisfied before an applicant can receive an insurance producer license in Alabama?

Complete relicensing classroom instruction, unless otherwise exempt by the Commissioner

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment

Which of the following will NOT be an appropriate use of a deferred annuity?

Creating an estate

Concerning Juvenile Life insurance, which of the following statements is INCORRECT?

Juvenile life is classified as any life insurance purchased by a minor

Which of the following settlement options in life insurance is known as straight life?

Life Income

Insurance is a contract by which one seeks to protect another from

Loss

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit Rider. Which of the following benefits will he receive?

Monthly premium waiver and monthly income

Traditional IRA contributions are tax deductible based on which of the following?

Owner's income

Which OPTION is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option

A insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?

Pay the death benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

Which of the following would NOT be a violation of state insurance regulations?

Producer C uses her license to write only business other than controlled.

Which of the following insurance options would be considered a RISK- sharing arrangement?

Reciprocal

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

Installing deadbolt locks on the doors of a home is an example of which method of handling risk?

Reduction

Insurance is the transfer of

Risk

A certificate of authority is NOT required for an insurance company that writes only

Surplus lines insurance

Which of the following is called a "second-to-die" policy?

Survivorship Life

The interest earned on policy dividends is

Taxable

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment

An adjustable life Policyowner can change which of the following policy features?

The coverage period

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefits from the policy?

The death benefit will be smaller

Which of the following best describes the tax advantage of a qualified retirement plan?

The earnings in a qualified plan accumulate tax deferred

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Alabama within how many days of the final disposition of the matter?

30 days

Telemarketing organizations are required to consult the National DO NOT CALL registry at least every

31 days

What is the waiting period on a Waiver of Premium ride in life insurance policies?

6 months

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

A business entity acting as an insurance producer is required to do all of the following except

Be a publicly owned company

Which of the following is TRUE about a class designation?

Beneficiaries are not identified by name

Which of the following features on a variable life insurance policy is guaranteed?

Death benefit up to the policy face value

Under a defined benefit retirement plan, who determines what benefits a retired employee will receive?

Employer

When an insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase

Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach?

Estimated longevity

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility

What type of premium do both Universal Life and Variable Universal Life policies have?

Flexible

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Foreign

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

Human Life value approach (HLVA)

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

Which of the following is TRUE about the 10-day free-look period in a Life Insurance policy?

It begins when the policy is delivered.

Which of the following best describes annually renewable term insurance?

It is a level term insurance

Which of the following is true about the premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?

It will likely be higher because the applicant is a substandard risk

If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

Jumping Juvenile Policy

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insured waived its right to have an answer on the application

All of the following are characteristics of a group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

Which of the following insurance arrangement will be appropriate for a parent buying a life insurance policy on a child where the parent is the Policyowner?

Third-party ownership

What is the purpose of a fixed-period settlement option?

To provide a guaranteed income for a certain amount of time

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy cash value. There is a limit for a withdrawal and the insured charges a fee. What type of policy does the insured most likely have?

Universal Life

The Waiver of Cost of Insurance rider is found in what type of insurance?

Universal Life

Which of the following products requires a securities license?

Variable Annuity

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

Withdraws are NOT taxable