Practice Primerica Exam (frequent misses)
If a credit life policy lapses for nonpayment before the debt is satisfied, within how many days must the creditor either refund the premium paid or apply it against the debt?
60
The term "illustration" in a life insurance policy refers to:
A presentation of non-guaranteed elements of a policy.
An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help to establish material facts in the case. Which of the following is true?
Applicants can only be used in court cases if they are attached to or endorsed upon the issued policy
Which of the following is NOT typically excluded from life policies
Death due to a plane crash for a fare-paying passenger
Applicants for surplus lines authority must fulfill all of the following requirements EXCEPT:
Hold a bond as a condition for licensure
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable
what is the official name for the Social Security program?
Old Age Survivors Disability Insurance
the advantage of qualified plans to employers is
Tax-deductible contributions
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information
The Fair Credit Reporting Act
A 60-yr old participant in a 401(k)plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of distribution is reduced by the amount of a 20% withholding tax.
Which of the following is true regarding license cancellation and reinstatement?
The license needs to be returned to the Insurance Department. It can be reinstated by filling out an application and paying a fee. The license needs to be returned to the Insurance Department. It can be reinstated by filling out an application and paying a fee.
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
when is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
which of the following is the closest term to an authorized insurer?
admitted
the least expensive first-year premium payment is found in which policy?
annually renewable term
What happens when a policy is surrendered for its cash value?
coverage ends and the policy cannot be reinstated
which of the following is true regarding credit life insurance?
it insures the life of a debtor
Which of the following would most likely NOT be required to complete continuing education hours in this state?
nonresident producers
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
paid up option
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
pay a reduced death benefit
In NJ, the public is protected by a notice of discontinuance when a policy is discontinued for nonpayment of premium. When a policy is discontinued, all of the following are required EXCEPT
refund of premiums
Equity indexed annuities:
seek higher returns