Primerica: Texas Life Agent

The insured's estate.

A 40-year-old man buys a whole life policy and names his wife is his only beneficiary. His wife dies 10 years later. He never remarried and as at age 61, leaving to grown-up children. Assuming he never change the beneficiary, the policy proceeds will go to...

Separate accounts.

A domestic insurer issuing variable contracts must establish one or more...

increasing

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

The payable premium amount steadily declined throughout the duration of the contract.

All of the following are true regarding a decreasing term policy except...

Policy loans can be made on policies that do not accumulate cash value.

All of the following are true regarding insurance policy loans except...

The transfer of all ownership rights in a life insurance policy can be accomplished through a...

An absolute assignment is a...

Guaranteed Insurability Option

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Refund the premiums paid.

An insured committed suicide one year after his life insurance policy was issued. The insurer will...

Paid-Up Additions

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called?

$50,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$200,000

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

Guaranteed Insurability

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called...

term

Children's riders attached to whole life policies are usually issued as what type of insurance?

The death benefit will be smaller.

Definite shoot withdraws a portion of the face amount in the form of a seller rated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

Interest

During partial withdrawal from a universal life policy, which portion will be taxed?

Seek higher returns

Equity Indexed Annuities...

hedge against inflation

Fixed annuity provide all of the following except...

The balance of the loan will be taken out of the death benefit.

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

With the policy.

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant...

The contingent beneficiary.

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to...

Pay the death benefit

In shirt purchased a life policy in 2010 and died in 2017. Insurance company discovered at the time that the insured had considered information during the application process. What can they do?

Adhesion

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristics does describe

Income for 2 or more recipients until they die.

Life income joint and survivor settlement option guarantees...

Must allow the policyowner to return the policy for a full refund.

Regarding the free-look provision, the insurance company...

Annually Renewable Term

The death protection component of Universal Life Insurance is always...

If the father is disabled for more than six months.

The father purchased as a life insurance policy on his teenage daughter and asked to pay your benefit rider. In which of the following scenarios with a writer waive the payment of premium?

The insured's age at death.

The insured had his wife named as the beneficiary of his life insurance policy. Chain sure that his wife had income for life after it insured's death, he chose the life insurance settlement option. The amount of payments will be determined by taking into account all of the following except...

Taxable

The interest earned on policy dividends is...

Incontestability Clause

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the...

An index like Standard & Poor's 500.

The minimum interest rate on an equity indexEd annuity is often based on...

Joint and Survivor

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called...

Waiver of premium.

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

SEC Registration

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

The same face amount as in the whole life policy.

Under an extended term nonforfeiture option, the policy cash value is converted to...

Cash Surrender

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Signed waiver of premium.

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

The beneficiary will only receive payments of the interest earned on the death benefit.

Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

Level fixed

Variable life insurance is based on what kind of premium?

The insured's contingent beneficiary.

Want a life insurance policy was issued, the policy on a designated a primary and contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.

What happens when a children's rider is added to an insured's permanent life insurance policy?

lump sum

What is the other term for the cash payment settlement option?

To provide a guaranteed income for a certain amount of time.

What is the purpose of a fixed period settlement option?

It allows the insured to reject the policy with a full refund.

What is the purpose of a free-look period in insurance policies?

Mode

What is the term for how frequently a policyowner is required to pay the policy premium?

It determines who receives policy benefits if the primary beneficiary is deceased.

What would be an advantage of naming a contingent (or secondary beneficiary) to a life insurance policy?

It is reduced to the amount of what the cash value would buy as a single premium.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

Return of Premium

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy?

fixed amount

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

The beneficiary must have insurance interest in the insured.

Which is not true about the beneficiary designations?

Extended term.

Which nonforfeiture option has the highest amount of insurance protection?

Payor Benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

The period of time during which a cumulated money is converted into income payments.

Which of the following best describes what the annuity is?

Policyowner

Which of the following has the right to convert the existing term coverage to permanent insurance?

The amount of premium payment.

Which of the following information will be stated in the consideration clause of a life insurance policy?

The death benefit is fixed.

Which of the following is not true regarding variable universal life policy?

It commences when the policy is delivered.

Which of the following is true about the mandatory free look in a Life Insurance policy?

It remains the same no matter how many children are added to the policy.

Which of the following is true about the premium on the children's rider in a life insurance policy?

It may last for the lifetime of the annuity.

Which of the following is true regarding the annuity period?

Insuring Clause

Which of the following policy components the company's promise to pay?

annual

Which of the following premium payment modes will incur the lowest overall payment?

Payor Benefit Rider

Which of the following riders would NOT cause the Death Benefit to increase?

It transfers rights of ownership from the owner to another person.

Which of the following statements is true about a policy assignment?

Target Premium

Which of the following would help prevent a universal life policy from lapsing?

Substitute Insured Rider

Which of the following writers is used in business life insurance policies when the policy owner needs to change insured under the policy?

Paid-Up Option

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

It's premium steadily decreases over time, in response to its growing cash value.

Which statement is not true regarding a short life policy?

Policyowner

Who can request changes in premium payments, face value, loans, and policy plans?

Immediate Annuity

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Required a premium increase each renewal.

A man decided to purchase a $100,000 Annually Renewable Term Life Policy to provide additional protection until his children finished college. He discovered that his policy..

Immediate

A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?

Joint Life Policy

A married couple owns a permeant policy which covers both of their lives an pays the face amount of the policy only upon the death of the first. Which policy is that?

A level annual premium for the life of the insured.

A straight life policy has what type of premium?

Annually Renewable Term policy with a cast value account.

A universal life insurance policy is best described as a/an...

Disputes regarding consumer report information.

According to the fair Credit reporting act, all of the following would be considered negative information about a consumer except...

Upon conversion, the death benefit of the permanent policy will be reduced by 50%.

All of the following are TRUE regarding the convertibility option under a term life insurance policy except...

The premiums are invested in the insurers general account.

All of the following are true about variable products EXCEPT...

The owner must be the party to receive benefits.

All of the following are true of an annuity owner EXCEPT...

The payable premium amount steadily declines throughout the duration of the contract.

All of the following are true regarding a decreasing term policy EXCEPT...

The Guaranty Association

All of the following entities regulate variable life policies EXCEPT...

Annually Renewable Term

All other factors being equal, the least expensive first year premium payment is found in...

When the agent delivers the policy, collect the initial premium, and the applicant completes an acceptable statement of good health.

An agent in an application for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

Fair Credit Reporting Act

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer report and company?

The beneficiary receive the full death benefit if it is determined that the applicant qualified for the policy.

An applicant signs an application for $25,000 life insurance policy, pays initial premium, and received a conditional receipt. If the applicant dies the following day which of the following is true?

The date of the medical exam.

An individual apply for an insurance policy and pay 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 policies effective date?

Decreasing Term

An individual has just borrowed $10,000 from his bank on a 5-year note. The note is due in installments. What type of life insurance policy would be best suited to this situation?

$100,000

An individual purchased $100,000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife will see from the policy?

Beneficiary's consent.

An insurance contract must contain all of the following to be considered legally binding except...

Single Premium Whole Life

An insurance policy that only requires a payment of premium at its inception and no further premiums contributions, and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100, is called...

limited-pay life

An insured has a life Insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid it. What kind of policy is it?

Universal life

An insured has a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policies cash value. There's a limit for withdrawal and then the insurer charges a fee. What type of policy does the shirt most likely have?

Interest Sensitive Whole Life

An insured purchased a life insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an...

Consideration

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?

Application

An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of it's underwriting information

Aleatory

And insured pays $100 premium every month for his coverage, yet then she promises to pay $10,000 for a covered loss. What characteristics of an insurance contract does this describe?

The insured may renew the policy for another 10 years, but at a higher premium rate.

And insured purchased a 10 year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10 your term?

Increases annually

Annually renewable term policies provide a level death benefit for a premium that...

Return the application to the applicant for signature.

If an agent fails to obtain an applicant's signature on the application, the agent must...

Securities

If an agent wishes to sell variable life policies, what must the agent obtain?

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

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

The insurer

If an insurance requires a medical examination of an advocate in connection with the application for life insurance, who is responsible for paying the cost of the examination?

The beneficiary.

If the annuitant dies during the accumulation., Who will receive the annuity benefits?

Upon the last death.

In a survivorship life policy, when does the insurer pay the death benefit?

Annuitization period

In an annuity, the accumulated money is converted into a stream of income during which time period?

When an insurer's underwriter approves coverage,

In forming an insurance contract, when does except it's usually occur?

An applicant submits an application to the insurer.

In insurance, an offer is usually made when...

The person must have at least completed secondary education.

In terms of parties to the contract, which of the following does not describe a competent party?

unilateral

Insurance policies, the insured is not legally bound to any particular action is insurance contract, but the insured is legally obligated to pay losses covered by the policy. What contract element does this describe?

Address it to the insured's age at the time of renewal.

Level term insurance provides a level death benefit and a level premium during the policy time. If the policy renews at the end of a specified period of time, the policy premium will be...

Premium receipt

Most agents try to collect the initial premium for submission with the application. When an agent Coleccionista premium for the applicant, the agent should issue the applicant a...

What is the definition of a unilateral contract?

One-sided: only one party makes an enforceable promise

Considered true to the best of the applicant's knowledge.

Representations are written or oral statements made by the applicant that are...

The beneficiary will receive the greater of the money paid until anybody or the cash value.

The annuity owner dies while there anybody is still in the accumulation stage. Which of the following is true?

Depends on the performance of a separate account.

The death benefit in a variable universal life policy...

As of the application date.

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy to cover it's become affective?

Return to the applicant for completion

The insurer discovered that one of the applicants for life insurance miss a couple of questions on the application. What should the insured do with the application?

When the payments begin.

The main difference between immediate and deferred annuities is...

The death benefit can be increased by providing evidence of insurability.

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this?

lower

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

The annuitant must be a natural person.

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

Convertible policy

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

Joint Life

Twin brothers are starting a new business. They know it will take several years to build business to the point that they can pay off the debt incurred in starting the business. What type of insurance will be the most affordable and still provide a death benefit should one of them die?

For 20 years or until death, whichever occurs first.

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid...4

Respond to the consumers complaint.

Under the fair credit reporting act, if the consumer to challenges the accuracy of the information contained in his or her report the reporting an agency must?

Insurance and cash account

What are the two components of a universal policy?

insurance

What do individuals use to transfer their risk of loss to a larger group?

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

What is the purpose of a conditional receipt?

Issue the policy anyway and pay the face value to the beneficiary.

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than a standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case the insurance company will...

Annuitant

When an annuity is written, whose life expectancy is taken into account?

When the application is signed and a check is given to the agent.

When is the earliest it a policy may go into effect?

When the insured reaches age 100.

When would a 20-pay whole life policy endow?

If it is intentional and material.

When would a misrepresentation on the insurance application be considered fraud?

Return the application to the applicant for completion.

Which is an appropriate action bother in sure if the perspective insured submitted an incorrect application?

It is a level term insurance.

Which of the following best describes annually renewable term insurance?

It is level term insurance.

Which of the following best describes annually renewable term insurance?

Consumer Report

Which of the following includes information regarding the a person's credit, character, reputation, and habits?

Policyowner

Which of the following individuals must have insurable interest in the insured?

Medical background

Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?

Depreciation Period

Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income?

The annuitant cannot be the same person as the annuity owner?

Which of the following is NOT true regarding the annuitant?

They have a guaranteed minimum interest rate.

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

It is a period during which the payments into the annuity grow tax deferred.

Which of the following is TRUE regarding the accumulation period of an annuity?

The annuitant assumes the risks on investment.

Which of the following is TRUE regarding variable annuities?

Benefit payment amounts are not guaranteed.

Which of the following is a feature of a variable annuity?

Buyer's Guide

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?

Life Paid-up at Age 65

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

Pay-in period

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

Survivorship Policy

Which of the following is called a "second to die" policy?

It would not occur in a deferred annuity

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

Straight life

Which of the following policies would be classified as a traditional level premium contract?

Universal Life Option A

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Standard risk is representative of the majority of people.

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

Premium amounts and surrender values.

Which of the following will be included in a policy summary?

Option B

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Medical information

Which part of an insurance application will contain information regarding the cause of death of the applicants deceased relatives?

Face Amount

Which policy component decreases in decreasing term insurance?

It's premium steadily decreases over time, in response to its growing cash value.

Which statement is not true regarding a straight life policy?

Single payment or periodic payments

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

Single Premium

Which type of life insurance policy generates immediate cash value?

Universal Life

Which type of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

The insurance company.

Who bears all of the investment risk in a fixed annuity?

To help the insured understand all aspects of the contract.

Why should the producer personally deliver the policy when the first premium has already been paid?

Limited Pay Whole Life

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?