PRIMERICA ALL TIME STUDY GUIDE

What is the maximum value of promotional gifts that an agent may give to a prospective insured?

$100

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?

$50,000

A paid nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?

60 days

According to the Entire Contract provision, a policy must contain

A copy of the original application for insurance

Which of the following products provides income for a specified period of years or for life, and protects a person against outliving their money?

An annuity

A Universal life insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account

Which of the following products will protect an individual from outliving their money?

Annuity

If an employee is accepted into a group life insurance plan, which status will the employee have?

Certificate holder

Who does the secondary notice provision protect?

Elderly insureds

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years, or until death, whichever occurs first

How long must insurers maintain records of the information collected from senior customers and other information used in making recommendations that were the basis for insurance transactions?

For 5 years after the insurance transaction is completed by the insurer

An insured received a new life insurance policy 5 days ago, but after a closer inspection of the policy provisions, decided to return it to the insurer. What provision would allow the insured to return the policy for a full premium refund?

Free look

What provision in an insurance policy extends coverage beyond the premium due date?

Grace period

What required provision protects against unintentional policy lapse?

Grace period

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?

If the father is disabled for more than 6 months

What type of insurance would be used for a Return of Premium rider?

Increasing term

Which of the following is true of a children's rider added to an insured's permanent life insurance policy?

It is term coverage that is convertible to permanent insurance at or prior to the child reaching reaching the maximum coverage age

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant

When replacing life insurance, the duties of the replacing insurance company include all of the following EXCEPT

Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Option A

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions

Which of the following is another term for the accumulation period of an annuity?

Pay-in period

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 is among the regulations set forth by the Florida Replacement Rule?

Providing a written comparison and summary statement

If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?

Replacement regulations will not apply in this situation

When a life insurance policy stimulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Spendthrift Provision

Which of the following statements about a suicide clause in a life insurance policy is true?

Suicide is excluded for a specific period of years and covered thereafter

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

How will a life insurance beneficiary designation, naming a spouse, be changed by divorce?

The beneficiary designation will be voided

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

The contingent beneficiary

Who does the secondary addressee provision protect?

The insured over age 64

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all insureds with no additional premium

Which of the following is a key distinction between variable whole life and variable universal life products?

Variable whole life has a guaranteed death benefit

When does a free-look period begin on a life insurance policy?

When the policy is delivered to the insured

An annuity contract is issued to a consumer over age 65. What is the maximum surrender charge for a withdraw of money allowed on this annuity?

10%

The minimum age for purchasing life insurance in Florida is

15

Which of the following insurance products would be subject to the regulation on life insurance solicitation?

A term life policy

The accelerated benefits provision will provide for an early payment of the death benefit when the insured

Becomes terminally ill

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

What does "level" refer to in level term insurance?

Face amount

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

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

Flexible

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients before they die

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability clause

The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principle will be paid to their children once they reach a certain age. Which settlement option should the policy owner choose?

Interest only option

Which of the following is true regarding the spendthrift clause in insurance policies?

It can protect the policy proceeds from creditors of the beneficiary

Which statement is not true regarding a policy summary?

It must be combined with a sales illustration

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

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?

No, the group must be formed for a purpose other than obtaining group life insurance

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement rule

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

The cost of coverage is a deductible expense by the employer

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000

An insured has a $10,000 term life policy. The annual premium of $200 was due on February 1. However, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy?

$9,800

All of the following information about a customer must be used in determining an annuity suitability EXCEPT

Beneficiary's age

Under which not forfeiture option does the company pay the surrender value and have no further obligations to the policy owner?

Cash surrender

What kind of policy does NOT typically require proof of insurability?

Group Life Insurance

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT

The insured's age at death

A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured, by policy or by law, to any of the following EXCEPT

The policyholder

Which of the following is TRUE regarding the premium in term policies?

The premium is level

If a life insurer holds the proceeds of any policy it issues, which of the following is true?

The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from injuries. What amount would his beneficiary receive as a settlement?

$200,000

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds

$50,000

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?

8%

In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?

8%

For variable products, underlying assets must be kept in

A separate account

The death benefit under the Universal Life Option B

Gradually increases each year by the amount that the cash value increases

What kind of policy issues certificates of insurance to insureds?

Group Insurance

Which term describes the benefits of a life insurance policy that the policy owner does not automatically relinquish even if the policy lapses?

Nonforfeiture values

The Policyowner pays for her life insurance annually. Until now, she has collected a non taxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all the premiums paid. Which ride tis attached to the policy?

Return of premium

If an agent wishes to sell variable life policies, which license must the agent obtain?

Securities

Which of the following dates must be contained in a policy summary?

The date the summary was prepared

The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability

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 benefit from the policy?

The death benefit will be smaller

Under a group plan, certificates of insurance must include all the following EXCEPT

The name of the writing agent

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

Which is true about a spouse term rider?

The rider is usually level term insurance

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount is in the whole life policy