Primerica Life Insurance License Questions & Answers. 100% verified. 2022/2023. Rated A

Document Content and Description Below

Primerica Life Insurance License Questions & Answers. 100% verified. 2022/2023. Rated A Which law is the foundation of statistical prediction of loss upon which rates for insurance are calculated... ? A) Law of Group Evaluation B) Law of Large Numbers C) Law of Masses D) Law of Averages - ✔✔B) Law of Large Numbers A producer who fails to segregate premium monies from his own personal funds is guilty of: A) Theft B) Commingling C) Larceny D) Embezzlement - ✔✔B) Commingling In insurance, an offer is usually made when: A) The completed application is submitted. B) The insurer approves the application and receives the initial premium C) The agent hands the policy to the policyholder. D) An agent explains a policy to a potential applicant. - ✔✔A) The completed application is submitted. An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? A) Mutual B) Reciprocal C) Nonprofit service organization D) Stock - ✔✔A) Mutual Which of the following insurance options would be considered a risk-sharing arrangement? A) Stock B) Mutual C) Surplus Lines D) Reciprocal - ✔✔D) Reciprocal On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are: A) Guaranteed B) Not taxable since the IRS treats them as a return of a portion of the premium paid. C) Paid at a fixed rate every year. D) Taxable as ordinary income. - ✔✔B) Not taxable since the IRS treats them as a return of a portion of the premium paid. If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept? A) Nonforfeiture B) Indemnity C) Reasonable expectations D) Cease and desist - ✔✔C) Reasonable expectations Who might receive dividends from a mutual insurer? A) Stockholders B) Agents C) Policyholders D) Subscribers - ✔✔C) Policyholders An individuals tendency to be dishonest would be indicative of a: A) Morale hazard B) Pure hazard C) Physical hazard D) Moral Hazard - ✔✔D) Moral Hazard Which of the following best describes the aleatory nature of an insurance contract? A) Only one of the parties being legally bound by the contract B) Ambiguities are interpreted in favor of the insured C) Policies are submitted to the insurer on a take-it-or-leave-it basis D) Exchange of unequal values. - ✔✔D) Exchange of unequal values Which of the following is true regarding a risk retention group? A) It is a liability insurance company owned by its members. B) It provides support for underwriters and is not an insurance company. C) It is a benefit society formed to provide insurance for members of an affiliated lodge. D) It is a company owned by the stockholders that provides nonparticipating policies. - ✔✔A) It is a liability insurance company owned by its members. An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? A) Waiver B) Utmost Good Faith C) Estoppel D) Material misrepresentation - ✔✔D) Material misrepresentation [Show More]

Last updated: 2 years ago

Preview 1 out of 12 pages