Primerica UCanPass Practice Exam:
Questions & Answers 401k plan Correct Ans - A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars.Absolute Assignment Correct Ans - A permanent and irrevocable transfer of rights and/or benefits by the policy owner.Collateral Assignment Correct Ans - A temporary and/or revocable transfer of benefits by the policy owner.Accelerated Death Benefit Correct Ans - Policy provision that allows full or partial payment of the policy's death benefit before the insured's death if he/she is terminally ill.Accidental Death Benefit Correct Ans - An extra cost rider that requires the insurance company to pay an additional benefit in the event that the insured dies within 90 days of an accident as a direct result of the accident.Accumulate at Interest Correct Ans - The Dividend Option where the policy owner leaves the dividends with the insurer to invest and earn interest.Adhesion Correct Ans - Since the insurer created all the documents of the contract, any ambiguities in the contract will be settled in favor of the insured. Since the insurer wrote the contract they are stuck with it. 1 / 2
Adverse Selection Correct Ans - The tendency for less favorable risks to seek or continue insurance to a greater extent than more favorable risks.Agency Agreement or Agency Contract Correct Ans - A legal document containing the terms of the agreement between the agent and the insurance company. It clearly defines what an agent can and cannot do, and how he/she will be compensated.
Agent Authorities Correct Ans - Expressed: Power or authority
specifically granted in writing to an agent by the insurance
company in their Agency Agreement. Apparent:
Power or authority that the public reasonably assumes an agent has based upon his/her
actions. Implied: Power or authority that is not
expressly granted by the company but that an agent can assume or that are implied he/she has in order to transact insurance business.Agent/Producer Correct Ans - Anyone who sells or aids in the selling of insurance. Legally represents the company.Agent's Report Correct Ans - A written report from the agent submitted to the insurer along with the application disclosing what the agent knows, observed, or learned about the proposed insured's risks.Aleatory Correct Ans - Unequal exchange of value. One party may obtain a far greater value than the other under the contract.Annual Renewable Term Correct Ans - A Term Life Insurance contract which gives the
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