Primerica practice exam

Which of the following insureds has a right to cancel an individual life policy within 30 days?

Insureds 60 years of age of older

All of the following would be considered insolvent insurers EXCEPT

A company that reinsurers outstanding risks.

A contract between an insured and an insurance company which agrees to pay the insured for loss caused by specific events is

A policy.

Which of the following statements regarding deferred compensation funds is INCORRECT?

A) they are usually qualified plans.

In general terms, IRA contributions

Are tax deductible.

Which of the following statements concerning buy-sell agreements is true?

Buy-sell agreements are normally funded with a life insurance policy.

A licensed insurance agent overhears a conversation that leads him to believe a person is committing fraud. If the agent makes a written report to a law enforcement agency and the person is investigated, but it turns out that it was an erroneous accusation, what charge will the agent face?

No charges; the Insurance Code gives the agent legal immunity.

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

Pay-in period

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of premium.

To which of the following products does the Replacement Regulation apply?

Whole life insurance

In insurance transactions, fiduciary responsibility means

a)Handling insurer funds in a trust capacity. An agent's fiduciary responsibility includes handling insurer funds in a trust capacity.

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

c)Rebating.

All of the following statements concerning dividends are true EXCEPT .

d)Dividend amounts are guaranteed in the policy. Dividends cannot be guaranteed.

All of the following benefits are available under Social Security EXCEPT

Welfare benefits.

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy.

All of the following are dividend options EXCEPT

Fixed-period installments.

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print?

12-point bold print

Every policy of individual life insurance must include a notice of right to cancel the policy, stating the specific time frame for the free-look period. Once the insured has cancelled the policy, within how many days must the insurer refund all premiums and policy fees?

30 days

As part of the continuing education requirement, what is the minimum number of hours of continuing education specific to long-term care insurance to be completed prior to each license renewal?

8 hrs For licensees issued a license after January 1, 1992, 8 hours of continuing education specific to long-term care insurance are required for each license period.

An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of

A STOLI policy.

Your client wants to buy a par policy to supplement his retirement savings program. Which of the following does your client need to understand about insurance policy dividends?

Dividends are considered a refund of unused premiums.

What qualifies an individual to contribute to an IRA?

Earned income

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

Executive bonus.

A set of legal or regulatory conditions that affect an insurer's ability to collect premiums commensurate with the level of risk incurred would be considered a(n):

Legal hazard.

The premium of a survivorship life policy compared with that of a joint life policy would be

Lower.

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration.

The title page of the policy provides a summary of the benefits and coverages provided by the policy. All of the following information is included in the title page EXCEPT

The insured's beneficiaries.