PRIMERICA LIFE INSURANCE EXAM LATEST
VERSION 2023 2024 GUARANTEED A+ AT FIRST
ATTEMPT
a 10% penalty must be paid on withdrawals made from a qualified plan before age
- 40
- 70 1/2
- 59 1/2
- 65 - Correct answer C. 59 1/2
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
- the insured will have to pay premiums for 6 months. If at the end of this period the
- the insureds premiums will be waived until she is 21
- the premiums will become tax deductible until the insureds 18th birthday
- since it is the policyowner, and not the insured, who has become disabled, the life
father is still disabled, the insured will be refunded the premiums
insurance policy will not be affected - Correct answer B. the insureds premiums will be waived until she is 21
a long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has be raised 7% as a result. Which policy rider caused this change?
- inflation rider
- cost of living rider
- value of adjustment rider
- return of premium rider - Correct answer B. cost of living rider
the cost of living rider annually adjusts the policy's face vale in accordance with the national rate of inflation or deflation. This rider adjusts the face amount of the policy to correspond with the rate of inflation, in order to keep the initial value of the policy constant over time
a Louisiana insurance company ran and advertisement in June 2008. When could the company discard the file on this document?
- June 2013
- June 2012
- June 2011
- June 2009 - Correct answer B. June 2012
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in Louisiana, insurance companies are required to keep files of all advertisements used for 4 years, or until he next examination by the Department
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
- required a premium increase each renewal
- built cash value
- required proof of insurability ever year
- decreased death benefit each renewal - Correct answer A. required a premium
increase each renewal
annually renewable term policies premiums are adjusted each year to the insured's attained age, however, the policy may be guaranteed renewable. Death benefits remain level, and switch any term policy, there are no cash values
a participating insurance policy may do which of the following?
- require 80% participation
- pay dividends to the policyowner
- provide group coverage
- pay dividends to the stockholder - Correct answer B. pay dividends to the
policyowner
a policy that insures 2 or more lives and pays on the death of the last insured is
- joint life
- group life
- survivorship life
- family protection ife - Correct answer C. survivorship life
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
- disclose commissions earned from the sale of the policy
- explain the policy provisions, riders, and exclusions
- collect any premium due
- explain the rating procedures if the policy is rated differently than applied for - Correct
answer A. disclose commissions earned fro the sale of the policy
a producer must explain policy provisions, exclusions, and riders at the time of the delivery, as well as the rating procedures especially if the policy is rated differently than applied for. The producer must also collect any due premium and have the insured sign the statement go continued good health
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A producer has been notified by the Commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before facing a fine?
- 5 business days
- 10 days
- 30 days
- the name must be changed immediately - Correct answer B. 10 days
a producer who contributes to use a unapproved trade name for 10 or more days after being notified will face a fine of up to $5,000
a producer in another state wants to become a producer in Louisiana. The other state gives the same privileges to Louisiana producers wanting to be licensed in that state as it does to its own producers. Louisiana, therefore, extends the licensing privileges to the prospective producer of the other state. What is this called?
- fair exchange
- controlled business
- subrogation
- reciprocity - Correct answer D. reciprocity
reciprocity occurs when the state in which the person resides accords the same privilege to residents of Louisiana
a producer is helping a married couple determine the financial needs of their children in the event of one or both should die prematurely. This is a personal use of life insurance known as
- survivorship insurance
- juvenile protection provision
- survivorship protection
- life planning - Correct answer C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. This is known as survivor protection
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
- survivorship insurance
- juvenile protection provision
- survivor protection
- life plannning - Correct answer C. survivor protection 3 / 4
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
- survivorship insurance
- juvenile protection provision
- survivor protection
- life planning - Correct answer C. survivor protection
life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. this is known as survivor protection
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called
- accelerated benefit rider
- living need rider
- payor rider
- cost of living rider - Correct answer D. cost of living rider
a "cost of living rider" adjusts the face amount of a policy to maintain the relationship of the face amount and increase in the cost of living
a statement which is the absolute truth is
- warranty
- representation
- misrepresentation
- fraud - Correct answer a. warranty
a straight life policy has what type of premium?
- an increasing annual premium for the life of the insured
- a decreasing annual premium for the life of the insured
- a variable annual premium for the life of the insured
- a level annual premium for the life of the insured - Correct answer D. a level annual
premium for the life of the insured
a tax-sheltered annuity is a special tax-favored retirement plan available to
- anyone
- certain age groups only
- certain groups depending on factors such as race, gender, and age
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