Primerica simulate exam

One must insurable interest exist in a life insurance policy?

At the time of the application

The document that indicates that insure has been approved and is authorized to transact insurance in a particular state is known as?

Certificate of authority

In the event the key employee quits or is terminated what provision provides for the owner of the policy to transfer coverage to the replacement employee provided the new employee provides evidence of insurability?

Change of insured

Which of the following are not fundable by annuities?

Estate liquidation

Variable whole life insurance is based on what type of premium?

Fixed

Which statement regarding insurable risk is not correct?

Insureds cannot be randomly selected

Which of the following statements about the reinstatement provision is true?

It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.

On its, advertisement a company claims that it has funds in his possession that are in fact not available for payment of losses or claims the company is guilty of?

Misrepresentation

The risk of loss may be classified as

Pure risk and speculative risk

A policy owner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policy owner should have her husband named as the?

Revocable beneficiary

An insurance policy that only requires a payment of premium at its inception provides insurance protection for the life of the insured and matures at the insurers age 100 is called

Single premium whole life

Which of the following is incorrect regarding a 100,000 20 year level term policy?

The cash value will equal 100,000

Which of the following is the best reason to purchase life insurance rather than annuities?

to create an estate

What type of account will most likely be established for minor?

Trust

Which of the following types of policies allows the policy owner to skip premium payments provided that there is enough cash value in the policy to cover the premium amounts

Universal life

If an insured issued a policy based on the application that had unanswered questions which of the following will be true?

The policy will be interpreted as if the insurer waived its rights to have an answer

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Which of the following best describes a bail out provision?

Allows the owner to surrender the annuity without charge

Which of the following provisions in annuity contracts allow the owner to surrender January if interest rates dropped to a specified level?

Bail out

According to the entire contract provision what document must be made part of the insurance policy?

Copy of the original application

Offers to refund this client first premium payment in exchange for purchasing a life insurance policy S is guilty of

Debating

Which of the following is not an example of insurable interest?

Debtor or creditor

If a change needs to be made to the application for insurance the agent may do all of the following except

Destroy the application and start a new one

A producer agent must do all of the following when delivering a new policy to the insured except

Disclose commission owned by the policy

Two individuals are in the same risk and age class yet they are charge different rates for their insurance policies due to an insignificant factor what is this called?

Discrimination

Any person who translates insurance without a license is punishable with a class B felony if the commissioner has reason to believe that any person has violated this rule the commissioner may do any of the following except?

Impose a prison sentence of no More than 6 months

What type of insurance would be use for a return of premium rider?

Increasing term

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

Target premium

The premiums paid by the employer in a business life insurance policy are?

Tax deductible by the employer

Which of the following is not the consideration in a policy

The application given to a prospective insured