Primerica Life Exam
What is the minimum civil fine per violation of the insurance code of this state?
$1,000
If a life insurance agent wants to affect a savings of premium rates by backdating an application for life insurance, what is the maximum time period that an application may be backdated?
6 months
Which of the following is another term for an authorized insurer?
Admitted
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?
Aleatory
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
Which of the following products will protect an individual from outliving their money?
Annuity
The accelerated benefits provision will provide for an early payment of the death benefit when the insured
Becomes terminally ill
What is the time period during which the surviving spouse of the insured does not receive Social Security income benefits?
Blackout Period
Which of the following would require an individual to stop participating in a specific activity in the Commissioner believes to be violating the insurance code?
Cease and desist order
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
Illegal
The commissioner may waive relicensing requirements or examinations for someone who has been a licensed insurance producer
In the preceding 12 months
Which of the following is usually true of a participating life insurance policy?
It may pay dividends to policyowners
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
Joint and Survivor
Which of the following is NOT a type of whole life insurance?
Level Term
When an applicant purchased a life insurance policy, the agent dated the application 4 moths prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would
Lower the insured's premium
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?
Medical background
What describes the specific information about a policy?
Policy Summary
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by age, sex, and occupation of each individual certificate holder
Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?
Promptly forwarding premiums to the insurance company
Which services are associated with Standard & Poor's and AM Best?
Rating the financial strength of financial companies
The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
All of the following would be different between qualified and nonqualified retirement plans EXCEPT:
Taxation on accumulation
Which of the following statements about Group Life is correct?
The cost of coverage is based on the ratio of men and women in the group
An adjustable life policyowner can change which of the following policy features?
The coverage period
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
Which is generally true regarding insureds who have been classified as preferred risks?
Their premiums are lower
What is the purpose in establishing the target premium for a universal life policy?
To keep the policy in force
Which of the following life insurance policies would be considered interest sensitive?
Universal Life
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
The requirement that agents not commingle insurance monies with their own funds is known as
Fiduciary responsibility
Person A has an insurable interest in Person B and wants to insure B's life. A will be the policy beneficiary. Which of the following is true?
Person B must consent to be insured in writing
Who can request changes in premium payments, face value, loans, and policy plans?
Policyowner
Which of the following is NOT a characteristic of an insurable risk?
The loss must be catastrophic
