Primerica Chapter 2 Quiz

An individual purchase a $100,000 joint life policy on himself and his wife. Eight years later he died an automobile accident how much was receive from the policy?

$100,000

At 8:30 applicant wants to start an insurance program, but realizing that his insurance won't need to likely change, he wants policy that can be modified to accommodate those changes as they occur which of the following policies would most likely fit his needs?

Adjustable life

Which of the following products will protect an individual from without living their money?

Adjustable life policy

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

Annuitization period

Which of the following will not be an appropriate use of a deferred annuity?

Creating an estate

An individual has been making periodic premium payments on annuity. The annuity income payments are scheduled to begin after one year since the annuity was purchased. What type of annuity is it?

Deferred

Which of the following is not a term for the period of time during which issued or the beneficiary receives income?

Depreciation period

An agent selling variable annuities must be registered with

FINRA

What does level refer to in level term insurance?

Face amount

The death benefit under the universal life option b

Gradually increases each year by the amount that the cash value increases

Which of the following terms best describe the coverage, provided by term policies compared to any other form of protection?

Greatest

The type of term insurance that provides increasing death benefits as the insured age is called

Increasing term

An insured purchased a life insurance policy. The agent told him that, depending upon the companies investments and expense factors, the cash values could change from the show in the policy at time this policy is an.

Interest-sensitive whole life

Which of the following best describes annually, renewable terms insurance?

It is level term insurance

An insured buys a five-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options when the insured renews the policy of five years what will happen to the premium?

It will increase because the insured will be five years older than when the policy was originally purchased

Twin brothers are starting a new business they know it will take several years to build a business to The Point that they can pay off the debt and cured and starting the business. What type of insurance would be the most affordable, and still provide a death benefit should one of them die?

Joint life

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

Option B

Amanda decided to purchase a $100,000 and you leave renewable term Life policy to provide additional protection until his children finish college. He discover that his policy...

Required a premium increase each renewal

Which of the following types of insurance policies will provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?

Term

All of the following entities, regulate variable life policies, except

The Guaranty Association

If the owner of a whole life policy, who is also the insured dies at age 80 and there are no outstanding loans on the policy what portion of the death benefit will be paid of the beneficiary?

The full death benefit

All the photos are true of an annuity owner, except

The owner must be the party to receive benefits

All of the following are true, but variable products, except

The premiums are invested in the insurer general account

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

To keep the policy in force

In an adjustable life policy, all of the following can be changed by the policy owner except

Type of investment

All the following are true regarding the convertibility option under a term life insurance policy, except

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

Which of the following products requires a securities license?

Variable annuity

If the annuitant dies during the accumulation period who will receive the annuity benefits

beneficiary

All the following are types of term policies based on what happens to the face amount during the policy term except

renewable

A domestic insurer issuing variable contracts, must establish one or more

separate accounts