Primerica Life License. Exam Questions with accurate answers. 100% Proven pass rate. 2022/2023.

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Primerica Life License. Exam Questions with accurate answers. 100% Proven pass rate. 2022/2023. What limits the amount that a policyowner may borrow from a whole life insurance policy? - ✔✔Ca... sh value What is NOT true about a joint and survivor annuity benefit option? - ✔✔Payments stop after the first death among the annuitants. If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? - ✔✔Fixed period The Waiver of Cost of Insurance rider is found in what type of insurance? - ✔✔Universal Life This is not a duty or responsibility of producers at the time of application - ✔✔Change any incorrect statement on the application by personally initialing next to the corrected statement. For how long is the certificate of prelicensing course completion valid? - ✔✔180 calendar days An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true? - ✔✔He will have to pay a penalty if he is younger than 59½. When must an IRA be completely distributed when a beneficiary is not named? - ✔✔December 31 of the year that contains the fifth anniversary of the owner's death. All other factors being equal, the least expensive first-year premium payment is found in - ✔✔Annually Renewable Term. If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be - ✔✔Authorized. Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? - ✔✔Twisting An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? - ✔✔Guaranteed insurability option Under what circumstances may a life insurance agent deliver a policy that is dated up to 3 months before the application was taken? - ✔✔To avoid an increase in premium rate for the insured Which of the following best describes gross annual premium - ✔✔Net premium plus expenses A couple own's a life policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to perm insurance in the future. Which of the following will she need to provide for proof of insurability? - ✔✔Proof of insurability is not required. What is not a term for a period of time during which the annuitant or beneficiary receives income? - ✔✔Depreciation period What is the purpose of establishing the target premium for a universal life policy? - ✔✔To keep the policy in force What produces evaluations of insurers' financial status often used by state departments of insurance? - ✔✔AM Best An applicant buys a nonqualified annuity but dies before the starting date. For which of the following beneficiaries would the contract's interest NOT be taxable? - ✔✔Spouse What allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? - ✔✔Payor Benefit 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. Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid - ✔✔For 20 years or until death, whichever occurs first. A policyowner cancels his life policy but instructs the company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called - ✔✔1035 exchange. What is the waiting period for rate filing before each rate may become effective? - ✔✔30 days An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer? - ✔✔$10,000, no tax consequence In an Adjustable Life policy what can't be changed by the policy owner - ✔✔The type of investment. In Ohio, a temporary license may be issued for reasons EXCEPT - ✔✔Agent's retirement. If an insured surrenders his life policy, which statement is true regarding the cash value of the policy? - ✔✔It is only taxable if the cash value exceeds the amount paid for premiums. IS true about a participating life insurance policy? - ✔✔Pays dividends to policyowners. NOT an appropriate use of a deferred annuity? - ✔✔Creating an estate Upon policy owner's death, policy will pay portion of proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose? - ✔✔Interest only option When an annuity is written, whose life expectancy is taken into account? - ✔✔Annuitant What is true concerning irrevocable beneficiaries? - ✔✔They can be changed only with the written consent of that beneficiary. Life insurance death proceeds are - ✔✔Generally not taxed as income. What documentation grants express authority to an agent? - ✔✔Agent's contract with the principal Why is an equity indexed annuity considered to be a fixed annuity? - ✔✔It has a guaranteed minimum interest rate. NOT a characteristic of group life insurance - ✔✔Premiums are determined by the age, sex and occupation of each individual certificate holder. Adverse selection is a concept best described as - ✔✔Risks with higher probability of loss seeking insurance more often than other risks. In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to - ✔✔Insurer's guaranteed minimum rate of interest Clause that describes the method pf paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? - ✔✔Common Disaster Clause IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. What kind of penalty would the owner pay? - ✔✔50% tax on the amount not distributed as required Who can make a fully deductible contribution to a traditional IRA? - ✔✔An individual not covered by an employer-sponsored plan who has earned income Who is a person, other than the viator, that enters into a viatical settlement contract? - ✔✔Provider What type of insurance would be used to a Return of Premium rider? - ✔✔Increasing Term An insured states her age as 40 on the application. When she dies, the insurer discovers that she was actually only 37 at the time of application. What will the insurance company do? - ✔✔Pay the death benefit in the amount that the premium at the correct age would have purchased Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive? - ✔✔Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit When a policy is cancelled the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount - ✔✔Equal to the original policy for as long a period of time that the cash values will purchase. J transferred his life policy to his son two years before his death. Which of the following is true? - ✔✔The entire face value of the policy will be included in J's taxable estate. Which of the following would be sufficient violation to warrant rejection, revocation, or suspension of an insurance agent's license? - ✔✔A denied license in another state Each person licensed as an agent or solicitor is required to complete how many hours of approved continuing education instruction every 2 years? - ✔✔24 Dividends from a participating policy are considered a return of excess premiums and are - ✔✔not taxable A field underwriter is NOT responsible for - ✔✔Determining the risk classification of the proposed insured A type of insurance company that pays dividends to stockholders is a - ✔✔Stock Company A person buying life insurance is demonstrating what method of handling risk? - ✔✔Transferring the risk In determining life insurance risks, an underwriter may classify risks as any of the following except - ✔✔Prorated Which doesn't allow contributions after age 70 1/2? - ✔✔Traditional IRA Before an insurer can request medical information about an applicant, what must they have in writing? - ✔✔Applicant's consent The person who negotiates a viatical settlement contract is a - ✔✔Viatical settlement broker If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to potential insureds, this may be considered - ✔✔Misrepresentation The life insurance portion of a Universal policy is ALWAYS what type of insurance? - ✔✔Annual renewable term Not correct about annuities - ✔✔Interest earned on money paid into an annuity is not taxable when withdrawn What are the three nonforfeiture values - ✔✔Extended term, reduced paid-up, cash The federal law that permits an applicant for insurance to question the validity and source of any credit information is called the - ✔✔Fair Credit Reporting Act In Ohio, the Superintendent of the Department of Insurance is - ✔✔Appointed by the Governor The annuity period is best described as the time during which the annuitant - ✔✔Receives payment A producer represents the - ✔✔Company In a policy insuring the life of a child, what allows the premiums to be waived in the event of the death or disability of the person responsible for premium payments? - ✔✔Payor provision Which annuity payout systems guarantees the return of at least all of the principal invested in the policy? - ✔✔Refund life annuity [Show More]

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