Primerica Pre-licensing Course Practice Exam

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• Says that coverage will be effective either on the date of the application or the date of the medical exam, whichever occurs last, as long as the applicant is found to be insurable as a standard risk, and policy is issued exactly as applied for
• What term designates the legal representative of an insurance company?
• Which designation can be changed at any time without the consent or knowledge of the beneficiary?
• Which rider provides a waiver of surrender charges if the annuitant is confined to a long-term care facility for at least 30 days?
• Which term describes transferring all rights of ownership to another person or entity?
• Which term refers to the intentional misrepresentation or concealment of a material fact used to induce a contract?
• Before issuing a certificate of authority, the state requires meeting financial requirements such as capital and surplus. Which term describes this requirement?
• Which term describes the process of evaluating and classifying risk for life or health insurance applications?
• Which term describes the entity that bears the financial exposure and is party to the contract with the insured for payment of losses?
• What term describes the life insurance policy's cash value that can be borrowed against for immediate needs?
• Which term is used for a master policy covering multiple lives under a single contract?
• Which term describes the entity that enters into or effectuates a viatical settlement contract and is not the viator?
• Also known as perceived authority; the appearance or assumption of authority based on the actions, words, or deeds of the principal or circumstances the principal created.
• Which term describes the individual who owns the policy and holds rights in it?
• Which form of term life has a death benefit that does not change throughout the life of the policy?
• An insurer incorporated outside the United States is called what?
• Which option pays until the first death among two or more annuitants and then stops?
• Allows children of the insured to be added to coverage for a limited period of time for a specified amount.
• Which risk category is described as not insurable by underwriters?
• What is the uncertainty or chance of a loss occurring?
• In life policies, the time when the face value is paid out is called what?
• Which license is intended to allow the continuation of a producer's business for a surviving spouse or next of kin after the producer's death?
• What describes situations that can only result in a loss or no change; no opportunity for financial gain?
• Policy termination due to nonpayment of premium is referred to as what term?
• Who is the person putting money into an annuity and who has all the rights?
• Which concept ensures survivors can maintain lifestyle after insured's death?
• Which term describes the amount available if the policy is surrendered for cash?
• Which term denotes the frequency with which the policyowner pays the premium?
• Which concept means the loss is borne by another party; will not eliminate the risk of death or illness, but relieves the insured of the financial losses these risks bring?
• What is the term for the transfer of rights of policy ownership?
• What term refers to the nonprofit trade organization that receives adverse medical information from insurers and helps to compare data on potential insureds?
• The pool of insureds used to predict losses must have which two characteristics?
• Which policy type is a form of permanent life insurance that may include cash value tied to a market index?
• Which feature ensures the insurer can guarantee a minimum rate of interest on the contract?
• The premium for which policy type is based on the issue age and remains the same throughout the life of the policy?
• What is defined as the face value of the policy—the original amount invested before any earnings?
• A person under legal age is referred to as what?
• Which risk classification is described as underwriters assess as not insurable?
• Which designation provides that if a beneficiary dies before the insured, the beneficiary's share is redistributed only among the remaining living beneficiaries (and not to the deceased's descendants)?
• Which term describes a person who cannot perform two or more activities of daily living (ADLs)?
• Which payout describes a policy where the beneficiary receives the face amount plus the cash value?
• Which term describes the policyowner's ability to name or change the beneficiary and monitor living benefits and payment options?
• A statement that, if discovered, would change the underwriting decision; if misrepresentation is intentional, it is considered fraud.
• Which term refers to the list of risks that are not covered by the policy?
• Which term refers to the amount of life insurance coverage stated in the policy, excluding any cash value?
• Which aspect assesses whether a group will be able to renew coverage?
• Which term refers to an insurance agent not appointed by an insurer who represents the client?
• Death resulting from an act of war is addressed by which clause in some policies?
• What term means the state of being solvent or able to meet obligations?
• A person licensed as a resident producer in one state who attempts to practice in another state would be classified as what?
• Which term describes the reduction, decrease, or disappearance of value of the person or property insured in a policy, caused by a named peril?
• Converting a person's net worth into a cash flow is known as which estate settlement concept?
• What is the term for a method of dealing with risk for a group of individuals or businesses with the same exposure to loss, where losses are shared within the group?
• ART; the purest form of term insurance; death benefit remains level and policy may be guaranteed to be renewable each year without proof of insurability; premium increases annually according to the attained age, as the probability of death increases
• Which type of annuity begins payments immediately after purchase?
• Which term describes the person who may be the policyowner and holds the policy's rights?
• Pay one time into an annuity and it's finished; this money will grow interest from that point on.
• Which settlement option provides the recipient with an income that he or she cannot outlive?
• Which term describes a practice of terminating an existing policy or letting it lapse, and obtaining a new one?
• What is the contract between a policyowner and an insurer that pays the insured or beneficiary for loss caused by specific events?
• A loss that is outside the insured's control is described as what?
• Which term describes the person who receives the proceeds of a life insurance policy?
• An insurer incorporated outside the United States is called what?
• What is the automatic option called that uses dividends to purchase a single premium policy in addition to the face amount of the permanent policy?
• Which term refers to an inducement not specified in the policy; offering something in exchange for the purchase of insurance?
• Which type of insurance covers the loss of physical property or the loss of its income-producing abilities?
• In a viatical settlement, who receives the proceeds from selling the policy?
• Which type of life insurance provides lifetime protection and includes a savings element known as cash value?
• Which option would be considered if you want a lifetime payout that stops upon death of the annuitant and does not provide for a survivor?
• Who would receive the annuity assets if the owner dies before claiming the money?
• Which term insurance features a level premium with an increasing death benefit over time to reflect inflation or living costs?
• Which policy is designed to cover a minor and generally has a fixed premium?
• What describes a condition that can reasonably be expected to result in death within 24 months?
• The viatical settlement broker represents which party in the transaction?
• Which retirement plan is available to nonprofit organizations and public school employees and allows salary deductions?
• Which term describes a formal agreement in which the accused pays a fine but does not admit guilt?
• Which annuity type is described as fixed annuities that invest on an aggressive basis to aim for higher returns and has a guaranteed minimum interest rate?
• Which policy provision gives the policyowner a limited period after receipt to review the policy and return it for a full premium refund?
• Which policy is a combination of universal life and variable life, offering flexible premiums and an adjustable death benefit with non-guaranteed cash values?
• Which term refers to the document that states the date the contract was received and requires the insured to sign?
• The types of risks the policy will not cover are called what?
• Which qualified plans allocate a portion of a company's profits to employee retirement accounts?
• Which term compares the death benefits that are paid at death in 10 or 20 years, if the insured died at that time, and accounts for the time value of money?
• Which rider would cover a child for a limited term?
• A loss that is specific as to cause, time, place, and amount; insurer must be able to determine how much the benefit will be and when it becomes payable
• Which provision allows renewal at the expiration date without evidence of insurability; based on insured's attained age?
• An insurer incorporated in this state is known as what?
• Which term life policy features a level premium and a death benefit that increases each year over the duration of the policy term; used by the insurer to fund riders (return of premiums) and used for cost of living?
• What is the purpose of the date of annuitization in relation to penalties?
• Which term best describes the reason for forming a group for insurance?
• Which report is based on the applicant's finances, character, work, hobbies, and habits and is typically used in underwriting?
• Which term describes the condition when the cash value of a whole life policy reaches the contractual face amount?
• Which statement best describes an indexed annuity?
• In a partnership, which arrangement is used when the partnership buys the policies on the partners?
• Which rider pays an additional amount if death is due to an accident?
• Which term means money is withheld or postponed until a future time or event?
• Which term refers to the insured's age at renewal or replacement?
• Not your family doctor; your specialist's report
• Which term describes the rights and obligations of an insurance contract that are universal from one policy to the next?
• The way companies and producers should conduct their business.
• Which term refers to the account that holds the policy's cash value?
• The policyowner must face the possibility of losing money or something of value in the event of loss—the concept is known as which of the following?
• Takes place when an insurer's underwriter approves the application and issues a policy.
• What is the amount paid upon the death of the insured in a life policy called?
• Which retirement account is funded with pretax contributions based on earned income and has an age limit of 70 1/2 with contribution limits?
• What term describes the requirement to determine whether an insurance product or investment is appropriate for a specific customer?
• Which annuity option pays the highest monthly benefit because no beneficiaries are paid after death?
• Which arrangement is commonly used to hold assets for minor beneficiaries or for estate purposes?
• Which term refers to the person who is the insured?
• Which policy is also known as flexible premium adjustable life and allows increasing or decreasing premium payments and even skipping a premium if cash value is sufficient?
• Who represents the life insurance policy providers in a viatical settlement?
• In term life policies, which provision allows renewal at expiration without evidence of insurability and is based on the insured's current age?
• Which arrangement involves a transfer of partial rights to another person, usually to secure a loan, and once the debt is repaid, the assigned rights are returned to the policyowner?
• What is the name of the charge that compensates the company for loss of investment value due to early surrender of a deferred annuity?
• Which provision allows a lapsed policy to be reinstated, usually within three years of lapse?
• What term describes a condition in which a person cannot perform at least two activities of daily living or requires substantial supervision due to severe cognitive impairment?
• Which term is defined as a condition or situation that increases the probability of an insured loss occurring?
• Coverage on human lives is known as what type of insurance?
• Which term life policy features a level premium and a death benefit that decreases each year over the duration of the policy term, often used to pay mortgage or other debts?
• Which term describes the fundamental requirement that a contract must have a lawful purpose to be enforceable?
• If the cash value exceeds the premiums paid, the excess is taxable as ordinary income; which feature does this describe?
• Which statement about permanent life insurance is true?
• Which provision determines what happens to a business if an owner dies or becomes disabled?
• Which term is used to describe the amount paid to beneficiaries upon the insured's death?
• Which term describes persuading a client to do something that's not in their best interest?
• Who is the person covered by the policy and may or may not be the policyowner?
• Which policy is a form of permanent life insurance with a cash value that can be tied to a market index?
• The death of a nonearning spouse who cares for minor children can cause great financial hardship and may provide funds for survivors to maintain their lifestyle. This concept is known as?
• Which option is designed to pay until the first death among two or more annuitants and not continue to a survivor?
• Which retirement plan is designed to provide benefits to employees with tax-deferred growth and vesting requirements, often managed by employers?
• Which policy has premiums that are fully paid up well before age 100, with shorter pay periods resulting in higher premiums?
• Which term refers to modifications to existing provisions used to adjust policy benefits and premiums?
• Which term describes a person who provides funds to acquire a life insurance policy or interest in the death benefits of a policy?
• Which designation would a policyowner choose if they want the freedom to remove or replace beneficiaries at will?
• Which term applies when it appears that a person has violated an insurance law of Pennsylvania, or any rule or regulation made by the commissioner?
• Which approach estimates the economic value of the insured to the family by calculating the potential earnings lost due to premature death?
• In group insurance, which factor, all else equal, improves the accuracy of loss projections due to sample size?
• The risk selection and classification process is known as?
• Which rider combines the spouse and child coverage into one arrangement?
• Which term represents the legal obligation for an agent to act in the best interests of applicants and insureds?
• Dividends paid to policyowners in a mutual company are best described as:
• Which annuity can be funded with a lump-sum or periodic payments and is typically used when the beneficiary is under 59½?
• Within the uniform simultaneous death law; if the insured and the primary die at approximately the same time with no clear evidence of the cause of death, you will protect the policyowner's original intent
• According to underwriting standards, which risk class represents the majority of people at a given age and with similar lifestyles?
• The payment of the entire benefit in one sum is called what?
• Which clause provides installment payments to the beneficiary and protects proceeds from creditors?
• Which term describes a document that provides basic, generic information about life insurance policies and is language approved by the Department of Insurance?
• Which term refers to the company that issues the new policy?
• Which policy type does not share in profits or losses?
• Which designation ensures a deceased beneficiary's share passes to that beneficiary's descendants?
• Which plan is designed for nonprofit organizations and public school employees and allows salary deductions?
• An insurer incorporated in another state or territorial possession is called what?
• Leaving funds to the insured's church, school, or a charity is described by which term?
• Dividends paid to policyowners in a mutual company are described as:
• Which designation cannot be changed without the written consent of the beneficiary?
• Which clause states that death is excluded while the insured is on active duty?
• Who is the person designated to receive the policy benefits?
• The ability to meet financial obligations is known as what?
• Which provision allows an insurer to adjust the policy benefits if there is a misstatement of age or sex?
• Which rider allows an early payout of the policy due to terminal illness or other conditions specified for payout?
• General report of the applicant's finances, character, work, hobbies, and habits
• Which term allows for the continuation of the producer's business after the death or disability of the producer?
• Which type of insurance insures against the financial loss caused by the premature death of the insured?
• If the annuitant dies before the invested amount is recovered, the remainder goes to the beneficiary with no interest.
• Which term refers to a presentation that includes nonguaranteed elements of a policy over a period of years?
• Which rider reduces your premium?
• What term describes the beneficiary who has the first claim to policy proceeds after the insured's death?
• Who receives the money from the annuity during the payout phase?
• Which term describes the rights of the policy owner, including naming and changing the beneficiary, receiving the policy's living benefits, selecting a benefit payment option, and assigning the policy?
• In a partnership, which agreement is used when each partner buys a policy on the other?
• Which item accounts for final medical expenses, funeral expenses, and day-to-day expenses after death?
• Which term describes an individual or business entity currently licensed as a resident producer in another state, who may apply for a nonresident producer license?
• Tax-deferred growth; money grows with cash and interest, but you do not pay taxes until later.
• Which provision prevents an insurer from denying a claim due to misstatements after the policy has been in force for two years?
• Which rider is designed to help pay for expenses in a nursing home?
• Which rider provides a disability benefit in the form of a monthly income rather than just waiving the premium?
• Which term describes authority not written in the contract but assumed by the agent to transact insurance for the principal?
• Which rider provides funds to cover living expenses in case of terminal illness?
• Retained Asset Accounts function as which type of account?
• Producers must adhere to certain established procedures, and failure to comply will result in penalties.
• Which product credits interest based on a stock index and includes a guaranteed minimum rate?
• Which term is the cause of the loss insured against in an insurance policy?
• Insurers need to be reasonably certain their losses will not exceed specific limits; this is why policies exclude coverage for loss caused by war or nuclear events.
• Which category best describes life insurance that remains in force for the insured's life or until age 100 and may include a cash value?
• Which payout is not taxable?
• Which investment vehicle holds the assets for a variable life policy's cash value in many jurisdictions?
• Which fund covers unexpected expenses after the insured's death, such as travel and lodging for family members?
• Which policy is designed to provide the policyowner with the best of both worlds—term and permanent coverage?
• Which term corresponds to 'saying or writing something that's not true or omits material facts' according to the material?
• What is the term for the transfer of rights of policy ownership?
• Which arrangement is typically used to secure a loan by transferring partial rights, with the rights returned after the debt is repaid?
• A loss that is specific as to the cause, time, place, and amount; insurer must be able to determine amount and when payable.
• In group underwriting, which factor is targeted to provide more accurate projections of future loss experience?
• A modification that guarantees an income for two recipients that neither can outlive.
• Which term refers to a fraudulent act within the life settlement arena?
• Which term describes tax treatment that defers taxes on investment growth until withdrawal?
• The policy feature that allows borrowing against the cash value with tax-deferred growth is called what?
• Which term is used to denote a regulatory action to stop violations, such as an order to cease certain activities?
• Which term denotes a formal set of standards and expectations that insurers and producers must follow to avoid penalties?
• Which policy is commonly used for employee groups and typically features group underwriting with minimal insurability requirements?
• Which term refers to actions to lower the probability or impact of a loss, such as preventive measures?
• Which term means information on the consumer's character, reputation, and habits?
• Which term describes the feature that guarantees the ability to purchase additional coverage without proof of insurability?
• Which term describes the automatic plan in dividends that increases the policy's cash value by purchasing additional insurance?
• Which policy type is described as the one where the amount needed to keep the policy in force for the current year is determined?
• Who is the person entitled to exercise the rights and privileges in the policy?
• Which policy pays the death benefit only after the last surviving insured dies?
• Which concept applies when there is a gray area or ambiguity in policy language that courts may interpret in favor of the insured?
• Which term describes a state of mind that leads to indifference to loss and careless actions that may cause injuries?
• Which settlement option involves the insurer retaining the policy proceeds and paying interest on the proceeds to the recipient at regular intervals?
• In some annuity contracts, the issuer does not guarantee a minimum rate of interest. What is the term for the rate that can vary?
• Which arrangement is described as the employer offering to give the employee a wage increase in the amount of the premium on a new life insurance policy on the employee?
• Which term means moving from one employer to another?
• Under receipt of a written proof of loss, which provision requires the insurer to pay death claims promptly?
• Which risk describes individuals who meet certain requirements and qualify for lower premiums than standard risk, with superior physical condition, lifestyle, and habits?
• Which term refers to the company whose policy is being replaced?
• What term refers to a medical examination conducted by physicians or paramedics at the insurer's expense?
• Who has a second claim to policy proceeds after the death of the insured, only after the primary beneficiary dies?
• Which policy insures two or more lives and pays the death benefit on the first death?
• Which provision guarantees the policyowner can buy additional insurance in the future without underwriting?
• Which concept involves the insurer keeping money in an account to accumulate interest with gains taxed?
• Which provision defines the period after the premium due date during which the policy remains in force if the premium is not paid by the due date?
• Which term describes a legally binding agreement between two or more parties?
• What is the primary purpose of insurance?
• Which term is used for the intentional withholding of information that can affect underwriting?
• What term describes the rights and obligations of an insurance contract that are generally universal across policies?
• What type of arrangement is established to provide for minors or to create a scholarship fund?
• Which document is prepared by an agent and may not be required for every client, containing personal observations?
• In privately owned corporations, when each stockholder buys a policy on each of the others, which purchase arrangement is this called?
• Anyone who gives a sum of money as a consideration for life insurance policy or interest in the death benefits; also means a person who owns, acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract or is the beneficiary of a life insurance policy which is or will be the subject of a viatical settlement contract
• Which term is involved when an applicant's truthfulness on an application is questionable?
• Which rider waives premiums if the insured is disabled for six months?
• The policy type typically designed to guarantee mortgage payoff with a level premium and decreasing death benefit?
• Which term covers essential activities such as bathing, dressing, eating, transferring, toileting, and continence?
• Which life insurance product features cash values not guaranteed and fluctuates with portfolio performance, typically requiring a securities license to sell?
• Which type of life insurance contracts has cash values that accumulate based on a portfolio of stocks without guarantees of performance?
• What term refers to a financial transaction in which the owner of a life insurance policy sells the policy to a third party for compensation, usually cash?
• A licensed person that, for a fee, negotiates viatical settlement contracts between the viator and viatical settlement providers; represents the viator
• Which policy element represents the policy's savings component or living benefit?
• Which type of insurer is owned by stockholders who provide capital and share in profits or losses?
• Which term is the ethical framework that governs how producers conduct themselves in the insurance industry?
• The specific day that an annuity goes from the pay-in period to the pay-out period; should not be before the annuitant is 59½ to avoid a 10% tax penalty.
• Which classification includes coverage against loss and damage to property and related liabilities?
• Which document confirms premium payment to the insurer?
• Policy termination due to nonpayment of premium is called what?
• What term identifies the person who owns the life insurance policy or the death benefit being sold in a viatical settlement?
• Which term denotes a source of retirement income?
• Which term is defined as the money paid to the insurance company for the policy?
• Which type of insurance covers medical expenses and/or loss of income caused by sickness or accidental injury?
• The premium that does not change throughout the life of a policy is called what?
• Which feature is used to modify provisions that already exist and adjust policy benefits and premiums?
• Which term refers to a life insurance policy that is often associated with guaranteeing minimum benefits stated in the contract?
• If a policy has lapsed, which provision allows reinstatement upon evidence of insurability within a specified period?
• If no beneficiaries are alive or none were indicated, the proceeds go to which of the following?
• Which term relates to non-guaranteed policy elements presented in a policy illustration?
• Which annuity covers one life?
• Which term refers to a forceful act or threat aimed to influence a person to act against his or her will?
• Which concept is used to estimate the financial loss to a family due to the insured's death?
• What does cash on delivery indicate in premium collection?
• Which settlement option can provide a single beneficiary income for the rest of his/her life?
• Approved by the IRS, which then gives both the employer and employee benefits such as deductible contributions and tax deferred growth; benefits the employees only, must be formally written, must be inclusive of all employees, and have a vesting requirement.
• A buy-sell agreement in a partnership is designed to manage ownership transfer upon what event?
• The owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract
• Which term describes the person who puts money into an annuity and has all the rights?
• Insurers must estimate the average frequency and severity of future losses to set premium rates
• Which rider pays a portion of the policy due to terminal illness?
• A viatical settlement allows a person living with a life-threatening condition to do what?
• Which rider combines spouse and child coverage into one arrangement?
• Selling assets to raise capital is called what?
• Which category is not primarily associated with funding the immediate expenses after death?
• Which arrangement is used when the corporation buys one policy on each shareholder?
• Which statement describes actions such as installing smoke detectors, annual physicals, or lifestyle changes?
• Which term describes charging higher premiums due to hazardous occupations or hobbies?
• Dividends can be used to purchase a one-year term policy for a year. Which term policy is this?
• Which term refers to the insured's age at renewal or replacement?
• Which annuity offers a guaranteed minimum rate of interest and payments that do not vary from year to year, regardless of inflation?
• The starting point and basic source of information
• Which term involves transferring all rights of ownership to another person or entity?
• Which type of insurance covers the loss and/or damage of property and resulting liabilities?
• Which provision states that after two years in force, a misstatement cannot be used to deny a claim?
• Which policy type is described as occurring with a yearly required amount to keep the policy in force and can vary?
• The term describing the choices on how money is paid out is called what?
• The savings element inside a whole life policy is also known as which term?
• To prevent denial of a claim due to misstatements after two years, which provision applies?
• What term describes a written modification attached to a policy that requires additional premium?
• Which term best describes insurance that provides protection against the illness or injury-caused financial losses?
• What insurance provision protects insurers from paying a claim if the insured commits suicide within a specified period after policy issue?
• A person's net worth is known as what?
• What contract provides income for a specified period of years, or for life?
• The MIB is a nonprofit trade organization that shares adverse medical information among insurers to compare data on potential insureds. Which term best describes this organization?
• An insurer incorporated in this state is called what?
• What provision allows settlement payments to be made in installments rather than a lump sum?
• Two or more annuitants receive payments until the first death among them, and then payments stop.
• Which provision allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability; based on insured's current age?
• Which annuity covers two or more lives?
• What term means a mutual interchange of rights and privileges?
• Which method is based on the predicted needs of a family after the insured's premature death?
• Which payout option guarantees income for two recipients and continues after the death of one?
• Which term refers to a document granted by the regulator indicating the insurer has been examined and found financially stable and organized in accordance with the Insurance Code?
• Which term refers to an individual characteristic that increases the chance of a loss due to physical condition or past medical history (e.g., blindness)?
• Pays a fixed, specified amount in installments until the proceeds are exhausted; recipient selects specified fixed dollar amount to be paid before proceeds are gone.
• Which term is used for a policy written as a master policy covering the lives of more than one individual under a single policy?
• Which method describes a cross-purchase arrangement in a partnership?
• What is the amount paid upon the death of the insured?
• What consists of the policy and a copy of the application?
• There has to be insurable interest in any life insurance policy and consent; a contract without a legal purpose is considered void, and cannot be enforced by any party.
• Which term describes a rate that may not drop below a policy's guaranteed minimum?
• Which term describes an act or omission knowingly or with intent to defraud, carried out by someone who uses or allows employees or agents to commit fraud?
• Which term describes the established procedures that consumer reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used?
• Which risk category describes applicants who are not acceptable at standard rates due to health, occupation, or dangerous habits; high exposure?
• Which payout describes a life insurance policy where the beneficiary receives only the face amount?
• Which type of life insurance is used to lessen a business's risk by protecting against the loss of a key employee?
• Which term describes the tendency toward increased risk because of an applicant's character or reputation, including potential lying or fraudulent claims?
• Which term describes the condition when the cash value reaches the contractual face amount?
• Term life insurance is best described as
• Which index accounts for time value of money when comparing death benefits payable in 10 or 20 years?
• What is the license that authorizes an insurer to operate in a state?
• The general account backing allows the insurer to guarantee a specified rate of interest and future income payments. What is the best description of this backing?
• Which term best describes the act of forcing someone to act against their will?
• Which statement best describes a risk-sharing arrangement such as a reciprocal insurance exchange?
• Eliminating exposure to a loss is an example of which risk-management technique?
• Which rider provides a monthly income based on a percentage of the face amount when disabled?
• Which term refers to an arrangement in which funds or property are held by a person or corporation for the benefit of another person?
• In insurance, which concept means the insured will be compensated to no more than the financial loss and cannot profit from a claim?
• Which hazard arises from a state of mind that reduces attention to loss?
• The general account backing most annuities is comprised mostly of which type of investments?
• What is the period during which the owner makes payments into an annuity and these payments earn interest on a tax-deferred basis?
• Which policy is written on the life of a minor and has a level premium with a death benefit that increases when the minor takes ownership?
• Which rider pays a multiple of the face amount if death is the result of an accident as defined in the policy?
• Which term describes an attempt to persuade a person to buy an insurance policy?
• Earned income.
• Which term describes the opportunity for either loss or gain and is not insurable?
• The relationship between the principal and the agent within the scope of authority is considered the acts of the insurer. This is known as which law?
• Which term describes the basic form of whole life, also called ordinary life or continuous premium?
• Which term describes the ways insurers and insureds can invest or distribute money available in a life policy?
• Which term compares the cash values available to buyers if they surrender the policy in 10 or 20 years; does not consider time value of money?
• Abbreviation ART stands for which type of term life policy?
• Presentation or depiction of nonguaranteed elements of a life policy is called?
• Which provision allows the insurer to convert a permanent policy to term insurance for the same face amount for a shorter period?
• Which term describes giving over your rights to the policy; does not change the insured or amount of coverage?
• Which plan defers employee salary into a retirement plan, may be matched by the employer, and allows catch-up contributions for those over age 50?
• From the underwriter's view, which aspect reflects the group's ability to renew coverage?
• Benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses are known as what?
• Under misstatement of age or sex, the insurer may adjust benefits to reflect what the premium at the correct age would have purchased.
• Which term is used for a master policy covering multiple lives under a single contract?
• Executive bonus is described as which of the following?
• A person (other than a viator) who enters into or effectuates a viatical settlement contract; does not include a bank, financing entity, or the issuer of a life insurance policy providing accelerated benefits
• Which term is the starting point and basic source of information used in underwriting?
• What term refers to the equity amount accumulated in permanent life insurance?
• Which term denotes the legal obligation that an agent must treat applicants and insureds ethically?
• Also known as level premium; the amount and frequency of each installment varies.
• A specified period of years is selected, and equal installments are paid to the recipient; payments will continue for the specified period even if the recipient dies before the end of that period; the longer the period selected, the smaller the payments.
• Which rider allows adding a spouse onto your policy and paying as part of your premium?
• Which designation splits the policy proceeds among living beneficiaries, with a deceased beneficiary receiving nothing?
• Which term is the legal term for the intentional withholding of information that will result in an imprecise underwriting decision?
• Which term means 'build up'?
• Primarily used with juvenile policies; if the payor becomes disabled or dies, the insurer will waive the premiums until the minor reaches a certain age.
• Which term describes a statement that, if discovered, would alter the underwriting decision?
• Which product has cash value that can be invested in separate accounts and may fluctuate with market performance?
• Not subject to the requirements regarding participation, discrimination, and vesting as qualified plans.
• Which term describes coverage for passengers or pilots on a regular airline, but not for noncommercial pilots?
• Which term describes a situation where the accused does not admit or deny the charges, but agrees to pay a fine; will still be held liable in the court of law?
• Which principle requires that all statements in an application be true to the best of the applicant's knowledge and free of concealment?
• Which term describes a life insurance policy where the cash value accumulates based upon a specific portfolio of stocks and does not guarantee performance?
• Which company is owned by policyowners and issues participating policies with dividends that are a return of excess premiums and are nontaxable?
• What is the money paid to the insurance company for the policy?
• Which term means a statement that is believed true but is not guaranteed to be true?
• An agreement between two or more parties enforceable by law.
• Provides the personal observations concerning the proposed insured; do not have to fill one out for every client
• Which term is used when a regulator issues an order to cease certain activities due to violations?
• What term refers to the permanent life insurance accumulation of cash value?
• Which term describes the rider that provides funds for early payout for specified conditions?
• The basic whole life policy, also referred to as ordinary life or continuous premium, requires the premium to be paid from issue until death or age 100. Which term describes this?
• Which designation cannot be changed without the written consent of the beneficiary?
• Which retirement account is funded with after-tax contributions and offers tax-free growth on earnings?
• Which policy is typically used to cover a group of employees through an employer, usually issued as annual renewable term with minimal insurability requirements?
• Must be issued any time an agent collects a premium
• The agent is usually the one whose solicited the insured.
• Which organization is composed of insurance commissioners from all 50 states, the District of Columbia, and the four U.S. territories, formed to resolve insurance regulatory issues?
• Retained Asset Accounts (RAA) are best described as which type of account?
• Which term describes information on a consumer's character, reputation, and habits that may be reported to third parties?
• Which term is the direct cause of a loss that an insurance policy aims to cover?
• Which policy type offers the flexibility to increase or decrease premium payments or skip a premium if there are sufficient funds in the cash value?
• Which clause addresses coverage for deaths caused by war-related events and is often distinct from other exclusions?
• Which type of life insurance provides temporary protection for a specific period and offers the greatest amount of coverage for the greatest premium?
• Which type of life insurance has an investment component that can be linked to a market index such as the S&P 500?
• Which term is a written statement describing the features and elements of the policy being issued?
• Which policy type does not pay dividends to policyowners?
• Which entity issues an insurance policy?
• Which term states the date the contract was received and requires the insured's signature?
• Which feature is provided if the annuitant is confined to a long-term care facility for at least 30 days?
• Which term describes a transaction where the policy owner sells a life policy to a third party for cash?
• Which term refers to COD; occurs if you haven't collected premiums?
• Which term describes insurers needing to estimate average frequency and severity of future losses to set premium rates?
• Which clause is used to preserve the policyowner's intent in the event of simultaneous death where the order of death cannot be determined?
• Which term means 'build up'?
• Contracts that offer guaranteed minimum or fixed benefits are known as which type?
• Something of value that each party gives to the other.
• Paid-up additions use dividends to purchase what type of policy?
• Which refers to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured (or until age 100)?
• The authority a principal intends to grant to an agent by means of the agent's contract is called what?
• Which term describes determining whether the continued operation of any insurer might be financially hazardous to policyholders, creditors, or to the public in general?
• Which term refers to an inducement not specified in a policy offered to influence the purchase of insurance?
• Which term cannot talk badly about another specific insurance company (i.e. State Farm)?
• What term describes a contract that provides income for a specified period of years, or for life?
• Who receives the annuity assets, or the money paid into the annuity or cash value (whichever is greater) if the owner dies before claiming the money?
• Which term describes the financial stake in the life or property that allows a policy to be issued?
• Which term describes policies where cash values accumulate based on a stock portfolio without guarantees of performance and are determined by the value of securities backing it?
• Which provision allows surrender without charge if interest rates fall by a specified amount within a specified time frame?
• Which term is also known as self-insurance when the insured accepts the responsibility for the loss before the insurance company pays, often through deductibles or self-insurance?
• Which provision prevents the policy from lapsing due to nonpayment of the premium?
• Which term describes paying off debts of the insured, such as a home mortgage or auto loans, with life insurance, often requiring collateral assignment?
• From the underwriting perspective, what type of turnover should a group have?
• Which policy pays the death benefit on the second death when two or more lives are insured?
• Which category provides for a child's education expenses or a surviving spouse's retraining to re-enter the job market?
• Which documents comprise the entire contract of a life insurance policy?
• Permanent life insurance refers to various forms of whole life policies that remain in effect to age 100 and include a savings element; nonparticipating policy does not pay dividends.
• Which term describes a tax-free distribution of funds from one retirement plan to another, if done within 60 days?
• What term refers to the period of payments into an annuity during which those payments earn interest on a tax-deferred basis?
• Must be of legal age, mentally competent to understand the contract, and not under the influence of drugs or alcohol.
• Which concept refers to using life insurance to guard wealth against creditor claims without illegal concealment or fraudulent transfers?
• In a privately owned corporation, which arrangement involves the corporation purchasing a policy on each shareholder?
• Which term describes the settlement option that provides a lifetime income to the recipient?
• Which term refers to a plan where you can take out money with a fee, and the insurer may close the policy without informing you that cash value is decreasing?
• Which term describes statements believed true to the best knowledge but not guaranteed to be true?
• Which term describes the act of deceiving to obtain life insurance benefits?
• Also known as pay-out period, annuitization period, or liquidation period; the time during which the sum accumulated during the accumulation period is converted into a stream of income payments to the annuitant.
• Which contracts offer guaranteed minimum or fixed benefits?
• What is the amount of benefit stated in the life policy?
• Which retirement plan is most commonly associated with employer matching of employee deferrals?