Primerica Life Exam

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What is the minimum civil fine per violation of the insurance code of this state?

$1,000

If a life insurance agent wants to affect a savings of premium rates by backdating an application for life insurance, what is the maximum time period that an application may be backdated?

6 months

Which of the following is another term for an authorized insurer?

Admitted

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Aleatory

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

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

Annuity

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

Becomes terminally ill

What is the time period during which the surviving spouse of the insured does not receive Social Security income benefits?

Blackout Period

Which of the following would require an individual to stop participating in a specific activity in the Commissioner believes to be violating the insurance code?

Cease and desist order

Which of the following will NOT be considered unfair discrimination by insurers?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

When the 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.

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

Illegal

The commissioner may waive relicensing requirements or examinations for someone who has been a licensed insurance producer

In the preceding 12 months

Which of the following is usually true of a participating life insurance policy?

It may pay dividends to policyowners

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

Joint and Survivor

Which of the following is NOT a type of whole life insurance?

Level Term

When an applicant purchased a life insurance policy, the agent dated the application 4 moths prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would

Lower the insured's premium

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?

Medical background

What describes the specific information about a policy?

Policy Summary

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by age, sex, and occupation of each individual certificate holder

Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?

Promptly forwarding premiums to the insurance company

Which services are associated with Standard & Poor's and AM Best?

Rating the financial strength of financial companies

The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable 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

Which of the following best details the underwriting process for life insurance?

Selection, classification, and rating of risks

All of the following would be different between qualified and nonqualified retirement plans EXCEPT:

Taxation on accumulation

Which of the following statements about Group Life is correct?

The cost of coverage is based on the ratio of men and women in the group

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

The coverage period

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans

Which is generally true regarding insureds who have been classified as preferred risks?

Their premiums are lower

What is the purpose in establishing the target premium for a universal life policy?

To keep the policy in force

Which of the following life insurance policies would be considered interest sensitive?

Universal Life

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

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

Fiduciary responsibility

Person A has an insurable interest in Person B and wants to insure B's life. A will be the policy beneficiary. Which of the following is true?

Person B must consent to be insured in writing

Who can request changes in premium payments, face value, loans, and policy plans?

Policyowner

Which of the following is NOT a characteristic of an insurable risk?

The loss must be catastrophic


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