Primerica guarantee test questions

The family term rider incorporates

Spouse term and children's term

S set up an individual retirement account that her employer is not contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does s have ?

Simplified Employee Pension (SEP)

Which of the following is true regarding pure life annuity settlement options?

It provides the highest monthly benefit.

Which of the following statements is true regarding SIMPLE plans?

Contributions and earnings are tax-deferred until funds are withdrawn.

Premiums collected on behalf of the insurance company by an agent will be held in what capacity?

Fiduciary

Cash Value guarantees in a whole life policy are called

Nonforfeiture values.

A stock insurer is defined as an insurer

Owned by its stockholders.

When an agent delivered an insurance policy to the insured, he collected the initial premium. as well as a document verify that the insured had not had any injuries or illness since the application date. What is this document called?

Statement of Good Health

Which of the following bears the investment risk in a variable life insurance policy?

The policy owner

What guarantees that the information explained in the insurance contract is true?

a warranty

In whole life insurance. When is the policy cash value scheduled to equal the face amount?

at the insured's age 100

An IRA contribution can be made from which of the following?

cash

Which of the following is guaranteed under a variable whole life insurance policy?

minimum death benefit

In order to reinstate a life insurance policy the insured must do all of the folding except

pay the next year's premium in advance

If an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will

Adjust the death benefit to what the premium would have purchased at the actual age or gender.

Which of the following would be likely to establish a SEP?

Small employers

An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

currently insured

If the Insurance Commissioner believes that an insurer has engaged in an unfair method of competition, what may the Commissioner issue?

Cease and desist order

Which of the following actions does NOT constitute false advertising.

Stating that dividends are not guaranteed

Guarantee future dividends is considered to be an unfair or deceptive act known as

misrepresentation

If an applicant submits the initial premium with an application which action constitutes acceptance?

The underwriters approve the application.

To purchase insurance, the policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

incurable interest

An insurance agent visits a potential client and explains various types of pol;icies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?

misrepresentation

What effect will the long term care (LCT) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured?

reduce the death benefit

Which of the following statements regarding hiv testing is not true?

test results must be sent to the department of insurance

What is the maximum period for a temporary license in this state?

6 months

The manner and/or frequency that the policyowner pays the policy premium is called

Premium mode.

Which of the following are characteristics of term life insurance?

Temporary protection, renewability, no cash value

When an individual obtains an insurance license for the primary purpose of writing insurance on themselves or for members of their immediate family or business, this is called

controlled business

Which of the following would NOT be eligible for coverage under a key person?

the owner of a shop

Which of the following individuals would be a likely candidate to purchase a deferred annuity?

Someone who wants to grow retirement funds tax deferred

If an individual willfully violates provisions of the fair credit reporting act, what is the maximum, civilly penalty?

$2,500

An insurer mails an insurance policy to a new policy owner. When the insurer relinquishes control of the policy, the policy is considered

delivered

Agent McButch used his size and implication of his " connections" to intimate applicants into purchasing life insurance from him. Which unfair trade practice is this an example of?

coercion

For how many years must a life insurance policy be in effect until the policyowner may be able to take out a policy loan?

3 years

A life insurance policy qualifies as a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?

7 years

The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the

Insuring clause.

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

Twisting

Which of the following is NOT an example of the company's location of incorporation?

authorized

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors and makes it sound worse than it is. This is an example of

defamation

Which of the following must be included in all life insurance advertisements

identity of the actual insurer

Which of the following is not true regarding a deferred annuity?

income payments begin within 1 year from the date of purchase

With Adjustable Life, the owner can change all of the following EXCEPT

the length of time the coverage will last

An annuity owner receives the same guaranteed payment every month. What type of annuity is it?

fixed

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did j choose?

fixed amount

Which of the filling is the correct statement about annuities?

fixed annuities do not provide protection against inflation

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed for life. Which settlement should his policy owner select?

joint and survivor

An annuitant pays the annuity premium on the 14th of each month Which of the following best describes this arrangement?

level

Which of the following best describes a rebate?

a producer returning part of her commission to her client, as an inducement to buy

An agent's license has been suspended, but he continues to transact insurance for his existing clients. This will be considered a(n)

misdemeanor

Which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value?

Variable whole life

With adjustable life, the owner can change all of the following except

the insured

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called

Term rider.

Which of the following is true regarding premium in a 10 year level premium policy?

the premium will remain level for 10 years

An applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. Their answer is considered to be

Representation.

Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?

the application contains material misstatements

While completing a life insurance application the applicant realizes that she should have answered an earlier question differently. What should the agent do to make the necessary change?

cross out the incorrect information, write in the correct answer and have the applicant initial the change

Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?

Both guarantee that the principal and interest will be fully paid out.

Who is the chief officer of the Georgia Department of Insurance?

The Commissioner of Insurance

Which of the following statements concerning the medical information bureau is correct ?

The Medical Information Bureau assists underwriters in evaluating and classifying risks.

Which of the flowering best defines the unfair trade practice of rebating?

offering an inducement of something of value not specified in the policy and

To which of the following do replacement regulations apply in this state?

Whole Life

An agreement that is enforceable by law is known as what kind of contract?

legal

An example of an alien insurer doing business in this state is one formed under the laws of

Mexico

In order to reinstate a life insurance policy the insured must do all of the following EXCEPT

Pay any interest due on back premiums.

In the event an annuitant dies during the accumulation period and there is a beneficiary names in the annuity, annuity benefits would be paid to the named

named beneficiary

If an insurance company issues a policy even though some questions on the application were unanswered. When can the insurer get the answers to those questions?

never; the insurer has waived its right to those answers by issuing the policy

Prior to solicitation in an insurance application,the insurer must provide which of the following to all prospective purchasers?

buyers guide