Primerica exam3
Which of the following is NOT a "person" for legal purposes?
A family
An insurer may discriminate against a person through underwriting if that person has
A physical handicap that could result in an actuarially predictable loss.
All of the following are true regarding a qualified annuity EXCEPT
At distribution, all amounts received by the employee are tax free.
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
The violation of a material warranty or other material provision of a policy allows
Both the insurer and the insured to rescind
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
Company.
Every expressed warranty made at or before the execution of a policy must be
Contained in and referred to in the policy or other document and signed by the insured.
Selection of coverage in employee benefits plans refers to
Employee choosing benefits.
The Commissioner performs all of the duties dictated by the CIC and
Enforces the execution of all provisions and laws.
Which is TRUE about the cash surrender non-forfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity?
Guaranteed Lifetime Withdrawal
Life income joint and survivor settlement option guarantees
Income for 2 or more recipients until they die.
A Return of Premium term life policy is written as what type of term coverage?
Increasing
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
Which of the following statements is TRUE about a policy assignment?
It transfers rights of ownership from the owner to another person.
If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following EXCEPT
Loss of the owner's income.
One of the advantages of a family life insurance policy that provides coverage for children is that it
May be converted to permanent insurance for the children without requiring evidence of insurability.
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
Which non-forfeiture option provides coverage for the longest period of time?
Reduced paid-up
An intentional or unintentional concealment entitles the affected party to which of the following?
Rescission of a contract.
Written binders provide insurance before the policy is actually issued. The time period between the issuance of the binder and the policy's effective date is called
Temporary term.
What method is used to determine the taxable portion of each annuity payment?
The exclusion ratio
Which of the following are generally NOT considered when underwriting group insurance?
The insureds' medical history
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
The type of investment.
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution.
Which of the following statements regarding deferred compensation funds is INCORRECT?
They are usually qualified plans.
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
What is the purpose of annuity riders?
To allow investors to obtain additional benefit
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
An agent and an applicant 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?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
In the event of a loss, business overhead insurance will pay for
rent
Regarding the taxation of Business Overhead policies,
Premiums are deductible, and benefits are taxed.
Representations in insurance contracts qualify as
Implied warranties.
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?
It does not guarantee that the entire principal amount will be paid out.
