Primerica Life Insurance Study guides, Class notes & Summaries

Primerica Life Insurance Exam: 2023/ 2024 New Update (Questions and 100% Verified Answers) 1. A married couple owns a permanent policy which covers both of their lives and pays the benefit only upon the death of the first insured. Which policy is that? A. Survivorship Life Policy B. Second-to-Die C. Family income policy D. Joint life policy Answer: D. Joint life policy 2. An annuity owner is funding an annuity that will supplement her retirement. Because she does not...

401 k plan - Answer A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars. Absolute Assignment v. Collateral Assignment - Answer Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit - Answer Policy provision that allows full or partial payment of the policy's death be...

Which of the following is not ordinary life insurance? a. A life paid up to 65 policy b. A 30 year decreasing term policy c. A group life insurance policy d. A 20-year endowment policy - Answer c. A group life insurance policy A failure to communicate information which a party to an insurance contract knows and should communicate, is called an act of: a. Concealment b. Intimidation c. Warranty d. Coercion - Answer a. Concealment When a family policy covers children all of th...

Signing and dating a delivery receipt for a life insurance policy helps to establish all of the following timeframes EXCEPT - Answer The Grace Period. Joe, Larry, and Curly own a small business. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two will be able to buy the partner's shares. Which term best describes this arrangement? - Answer Business Continuation The responsibility of making certain that an application for insuranc...

Risk - Answer uncertainty of a financial loss; 2 types Two typed of risks - Answer Pure (Insurable) and speculative (uninsurable) Benefits of purchasing insurance? - Answer You get to transfer financial risk left after passing to insurance company Law of large numbers - Answer the larger the size of the group the more accurately the experience aka predicted losses of that group can be predicted Policyowner - Answer person who owns policy, pays premiums, and chooses the...

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a) Estate liquidation b) Nonpayment of premium c) Change of beneficiary d) Viatical settlement - Answer d Which of the following best describes fixed-period settlement option? a) Only the principal amount will be paid out within a specified...

agent - Answer legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer insured - Answer the person covered by the insurance policy; this person may or may not be the policyowner broker - Answer an insurance agent not appointed by an insurer and is deemed to represent the client insurance policy - Answer a contract between a policyowner (and/or insured) and an insurance company which ag...

Primerica-Life Insurance, All Core Exams |Question and Answer| 100% Correct Stranger-oriented life insurance policies are in direct opposition to the principle of a. law of large numbers b. good faith c. indemnity d. insurable interest *Ans* d. insurable interest-STOLI purchaser doesn't know the insured, or have any interest in the insured's longevity, so it violates the principle of insurable interest Which is generally true regarding insureds who have earned preferred status? a....