Primerica Life Insurance
All of the following information must be communicated in an insurance contract EXCEPT
Information the other party already knows.
All of the following are dividend options EXCEPT
Fixed-period installments.
An insurer has been found guilty of a Code violation regarding replacement. The insurer then repeats the violation. What will be the minimum penalty?
$30,000
If an insured changes his payment plan from monthly to annually, what happens to the total premium?
Decreases
What are the consequences of a failure to comply with the Commissioner's office while it is executing a seizure order?
It is a misdemeanor punishable by a fine of $1,000, one-year imprisonment, or both.
Which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase?
Withdrawn amounts are taxed on a last in, first out basis.
What limits the amount that a policyowner may borrow from a whole life insurance policy?
Cash value
Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT
Declining applicant for a positive HIV test result.
Signing and dating a delivery receipt for a life insurance policy helps to establish all of the following timeframes EXCEPT
The Grace Period.
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500.
Which of the following is true regarding a market value adjusted annuity?
The owner is guaranteed a fixed interest rate for a specific period of time.
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
Which of the following premium modes would result in the highest annual cost for an insurance policy?
Monthly
Events in which a person has both the chance of winning or losing are classified as
Speculative risk.
Which of the following types of agent authority is also called "perceived authority"?
Apparent
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called
Consideration.
A key person insurance policy can pay for which of the following?
Costs of training a replacement
Which of the following is NOT allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
Which nonforfeiture option has the highest amount of insurance protection?
Extended Term
Which of the following annuity riders ensures investors will receive a set amount of income annually?
Guaranteed Minimum Income Benefit
Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?
It will decrease the benefits paid to the beneficiary.
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
What describes a situation when poor risks are balanced with preferred risks, and average risks are in the middle?
Profitable distribution of exposures
Which settlement option provides a single beneficiary with income for the rest of his/her life?
Single Life
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
The Commissioner may suspend an applicant's license without a hearing if the applicant has had another professional license suspended or revoked within what time period?
5 years
For variable products, underlying assets must be kept in
A separate account.