Primerica Life Insurance Test

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

0%

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy

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 provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level?

Bail-out

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

Cash option

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

How often must producer licenses renew in Louisiana?

Every 2 years

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

A Return of Premium term life policy is written as what type of term coverage?

Increasing

Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount.

Which clause stipulates that life insurance premiums can be paid in advance of policy issuance?

Payment of Premium Clause

Which settlement option provides a single beneficiary with income for the rest of his/her life?

Single Life

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

When a fixed annuity owner pays his/her insurance company a monthly annuity premium, where is this money placed?

The insurance company's general account

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

the benefit is received tax free

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

Which of the following is an example of liquidity in a life insurance contract?

The cash value available to the policyowner

Which of the following Life Insurance policies would be considered interest sensitive?

Universal Life

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

The authority granted to an agent through the agent's contract is referred to as

Express Authority

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

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Inspection Report

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

Policyowner

Which of the following would not be a violation of Louisiana insurance regulations?

Producer C uses her license to write uncontrolled business only.

The risk of loss may be classified as

Pure risk and speculative risk.

An insured is dissatisfied with her insurance policy and wants to negotiate certain provisions of the contract. What entity would her producer represent?

The Insurer

Which of the following is NOT a goal of risk retention?

To minimize the insured's level of liability in the event of loss

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

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

Universal Life

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover?

$8000, 60 days