LIFE Primerica General

What premium payment mode will incur the lowest overall payment?

Annual

A Universal Life Insurance policy is best described as

Flexible premium variable life policy

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term

If a life insurance policy has an irrevocable beneficiary designation, _________

The beneficiary can only be changed with written permission of the beneficiary

Annually renewable term policies provide a level death benefit for a premium that ___________

Increases

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies, and habits. What type of report is that?

Inspection report

Which of the following policy components contains the company's promise to pay?

Insuring Clause

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

Which of the following is NOT true regarding a nonqualified retirement plan?

Needs IRS approval

Which option for Univeral life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

Which nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

The paid-up addition option uses the dividend to ________

Reduces the next year's premium

The policyowner 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

Because of financial obligations, John felt that he needed more insurance than the insurer was willing to issue. John's insurance producer told him that he could maximize the death benefit without increasing the face amount by the use of a(n)

Return of premium rider

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

What does "Liquidity" refer to in a life insurance policy?

Cash values can be borrowed at any time

An individual borrowed money at the bank to send his daughter to college. Instead of purchasing Credit Life insurance, he used an existing life insurance policy to secure the debt. This would be called a/an

Collateral assignment

What factors determine the amount of each installment paid in a Life Income Option Arrangement?

Life expectancy and financial staus of the insured

Methods used to pay the death benefits to a beneficiary upon the insured's death are called

Settlement option

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Survivor protection

What would help prevent a universal life policy from lapsing?

Target premium

hat is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

The term "illustration" in a life insurance policy refers to_____

A presentation of nonguaranteed elements in a policy

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

Deductible to the emplyer

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the ________?

Third party rider

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

$200,000

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is

A modified endowment contract

Contracts that are prepared by one party and submitted to the other party on a "take it or leave it" basis are classified as

Contracts of adhesion

If an agent wishes to sell variable life policies, what license must an agent obtain?

Securities

What is the name of the insured who enters a viatical statement?

Viator

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

In a life settlement contract, whom does the life settlement broker represent?

The owner

If the policy owner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

The policy ownder

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

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

When is the earliest a policy may go into effect?

When the policy is signed, and a check is given to the agent

What type of insurance would be used for a Return of Premium rider?

Whole life

If a consumer request additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

The two types of assignments are

Absolute and collateral

Universal Life Insurance policies are best described as __________

An annually renewable term policy with a cash value account

Which of the following is TRUE about nonforfeiture values?

They are required by state law to be included in the policy

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate

What is the purpose of establishing the target premium for a universal life policy?

To prevent the policy from lapsing

If only one party to an insurance has made a legally enforceable promise, what kind of contract is it?

Unilateral

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

Universal Life

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

0%

The equity in an equity index annuity is linked to _____________

An index like Standard & Poor's 500.

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization period

An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?

Application

Which policy component decreases in decreasing term insurance?

Face amount

Both Universal Life and Variable Universal Life have a

Flexible Premium

In a direct rollover, how is the money transferred from one plan to the new one?

From trustee to trustee

When would the insured be able to receive the full face amount from a whole life policy?

If the insured lives to age 100

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life Income with period certain

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option