Primerica exam 5

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All of the following are true regarding a qualified annuity EXCEPT

At distribution, all amounts received by the employee are tax free.

The act of revoking or terminating an insurance policy is called

Cancellation.

Every expressed warranty made at or before the execution of a policy must be

Contained in and referred to in the policy or other document and signed by the insured.

What are the continuing education requirements for life-only agents in California?

24 hours every 2 years

Which of the following statements regarding Business Overhead Expense policies is NOT true?

Benefits are usually limited to six months.

Which of the following is NOT considered personally identifiable information?

Government records

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity?

Guaranteed Lifetime Withdrawal

What type of insurance would be used for a Return of Premium rider?

Increasing Term

The insurer may suspect that a moral hazard exists if the policyholder

Is not honest about his health on an application for insurance.

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity.

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?

Joint and survivor

For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become

Larger.

Which of the following is an example of a limited-pay life policy?

Life Paid-up at Age 65

To achieve the profitable distribution of exposures,

Preferred risks and poor risks are balanced, with average risks in the middle.

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract.

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

The date of medical exam

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies.

Which of the following statements is TRUE concerning irrevocable beneficiaries?

They can be changed only with the written consent of that beneficiary.

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.

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

Ancestry.

Any insurance agent who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation

Be fined a sum of $1,000.

Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will

Be level thereafter.

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

Cash option

Which of the following elements in an Indexed Universal Life policy is tied to an index?

Cash values

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Conditional

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

Convertible Term Policy.

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term

No person can act as an administrator in this state unless he or she

Holds a certificate of registration issued by the Commissioner.

If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following EXCEPT

Loss of the owner's income.

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Must be informed of the source of the report.

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Nothing; the payments will cease.

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant.

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy.

When a discontinued policy contained a death benefit, what term is used in the CIC to describe the length of the applicable extension of benefits?

Reasonable

Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?

Reduction

All of the following topics may be included in the continuing education requirement for long-term care insurance EXCEPT

Sales techniques and overcoming client objectives in the purchase of long-term care insurance.


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