primerica exam 6
A new insurance must be treated as a replacement if a new insurer sells a policy to a group which discontinued its group medical insurance within how many days?
60
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
A tornado that destroys property would be an example of which of the following?
A peril
All of the following are true regarding a qualified annuity EXCEPT
At distribution, all amounts received by the employee are tax free.
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called
Consideration.
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
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 type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
Arnie worked for Evermore Life Insurance for many years and became their top-selling agent. However, while Arnie was out of the country enjoying his earnings, he forgot to send in his renewal for his life license and his license expired. In addition to Arnie's license expiring, what else will happen to Arnie?
His appointment will expire.
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
It is only taxable if the cash value exceeds the amount paid for premiums.
Which of the following is NOT true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
Variable Whole Life insurance is based on what type of premium?
Level fixed
According to California Insurance Code, the term "shall" describes what kind of actions?
Mandatory
According to California Insurance Code, all licensees must prominently display their individual license numbers on all of the following EXCEPT
Motor club advertisements.
What describes the specific information about a policy?
Policy summary
The following are features of the Indexed Universal Life EXCEPT
Sale of this product requires a securities license.
All of the following are beneficiary designations EXCEPT
Specified.
An insurer's liability shall be limited to
The face amount of an individual insurance policy, subject to any exclusions and riders as applicable, minus any outstanding policy loans and interest payments due the insurer.
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
What is a wrongful act or the violation of someone's rights that leads to legal liability called
Tort
An absolute assignment is a
Transfer of all ownership rights in a policy.
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
Adhesion
Which of the following is NOT a type of Temporary Insuring Agreement?
Bridge Coverage Receipt
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
An association could buy group insurance for its members if it meets all of the following requirements EXCEPT
Has at least 50 members.
During the grace period, the policyowner can
Pay a late premium without penalty.
Adverse selection is a concept best described as
Risks with higher probability of loss seeking insurance more often than other risks.
Which of the following policies would be classified as a traditional level premium contract?
Straight Life
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT
age 65.
During a pre-selection interview, an agent is allowed to do all of the following EXCEPT
Ask questions that are not on the application but that are important for underwriting.
A person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard?
Morale
The initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract.