Primerica (life Insurance basics)

Which is the primary source of information used for insurance underwriting?

Application

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

Benefits are usually limited to six months.

Joe, Larry, and Curly own a small business. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two will be able to buy the partner's shares. Which term best describes this arrangement?

Business Continuation

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?

the producer (agent)

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?

It will likely be higher because the applicant is a substandard risk.

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages.

Regarding the taxation of Business Overhead policies,

Premiums are deductible, and benefits are taxed.

2 Signing and dating a delivery receipt for a life insurance policy helps to establish all of the following timeframes EXCEPT

The Grace Period.

Which of the following would NOT fall into the category of costs associated with death?

The expense of a vacation for surviving family members

Which is generally true regarding insureds who have been classified as preferred risks?

Their premiums are lower.

What is the purpose of the buyer's guide?

To allow the consumer to compare the costs of different policies

Which of the following would be least likely to be considered a legitimate need that would be paid by insurance proceeds?

Vacation travel expenses