PRIMERICA rLIFErINSURANC ErEXAM/194rQUESTIONS rAND r ANSWERSr(A+) Anrinsuredrpurchasedranrinsurancerpolicyr5ryearsrago .rLastryear,rsherreceivedrardividendrcheckrfromrtherins urancercompany rthatrwasrnotrtaxable.rThisryear,rsherd idrnotrreceiverarcheckrfromrtherinsurer.rFromrwhatrtyper ofrinsurerrdidrtherinsuredrpurchasertherpolicy?
a.rmutual b.rreciprocal c.rnonprofitrservicerorganization d.rstockr-r√Answer>A.rmutual
fundsrnotrpaidroutrafterrpayingrclaimsrandrotherroperat ingrcostsrarerreturnedrtortherpolicyrownersrinrtherformro frardividend.rifrallrfundsrarerpaidrout,rnordividendsrarerp aid
Quizr:Followingrarcareerrchange,ranrinsuredrisrnorlong
errrequiredrtorperformrmanyrphysicalractivities,rsorherh asrimplementedrarprogramrwhererherwalksrandrjogsrfo rr45rminutesreachrmorning.rTherinsuredrhasralsorelimi natedrmostrfattyrfoodsrfromrhisrdiet.rWhichrmethodrofrd ealingrwithrriskrdoesrthisrscenariordescribe?
a.rretention 1 / 4
b.rreduction c.rtransfer d.ravoidancer-r√Answer>B.rreduction
therinsured'srchangerinrlifestylerandrhabitsrwouldrlikel yrreducertherchancesrofrhealthrproblems
Quizr:Inrinsurance,ranrofferrisrusuallyrmaderwhen
a.ranrapplicantrsubmitsranrapplicationrtortherinsurer b.rtherinsurerrapprovesrtherapplicationrandrreceivesrth erinitialrpremium c.rtheragentrhandsrtherpolicyrtortherpolicyholder d.ranragentrexplainsrarpolicyrtorarpotentialrapplicantr- r√Answer>A.ranrapplicantrsubmitsranrapplicationrtorth erinsurer
inrinsurance,rtherofferrisrusuallyrmaderbyrtherapplicantr inrtherformrofranrapplication.racceptancertakesrplacerw henranrinsurer'srunderwriterrapprovesrtherapplicationr andrissuesrarpolicy
Quizr:thercausesrofrlossrinsuredragainstrinranrinsuranc
erpolicyrarerknownras
a.rperils b.rlosses c.rrisks d.rhazardsr-r√Answer>A.rperils
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perilsrarerthercausesrofrlossrinsuredragainstrinranrinsur ancerpolicy
Quizr:whatrdocumentationrgrantsrexpressrauthorityrtor
anragent?
a.ragentsrcontractrwithrtherprincipal b.ragentsrinsurancerlicense c.rfiduciaryrcontract d.rstaterprovisionsr- r√Answer>A.ragentsrcontractrwithrtherprincipal
therprincipalrgrantsrauthorityrtoranragentrthroughrthera gent'srcontract
Quizr:whichrofrtherfollowingrbestrdescribesranrinsuran
cercompany rthatrhasrbeenrformedrunderrtherlawsrofrthi srstate?
a.rdomestic b.rsovereign c.ralien d.rforeignr-r√Answer>A.rdomestic
arcompany risrdomesticrwhenrdoingrbusinessrwithinrth erstaterinrwhichritrisrincorporated
Quizr:whichrofrtherfollowingrfactorsrisrNOT rconsideredr
byranrunderwriterrwhenrdeterminingrtherpremiumrrate srforranrindividualrseekingrinsurance? 3 / 4
a.rmedicalrhistory b.rsex c.rage d.rracer-r√Answer>D.rrace
age,rmedicalrhistory,randrsexrprovidersoundrstatistical rdaterforrdeterminingrtherprobabilityrofrloss.rRace,rrelig ion,rsexualrorientation,retc.rarertherfactorsrthatrcannotr berusedrbecauserthererisrnotrsoundrstatisticalrdatartors howrthatrtheyreffectrtherprobabilityrofrloss;rtherefore,rth eyrarerconsideredrtorberdiscriminatory
Quizr:inrinsurancertransactions,rfiduciaryrresponsibilit
yrmeans
a.rhandlingrinsurerrfundsrinrartrustrcapacity b.rmaintainingrgoodrcreditrrecord c.rbeingrliablerwithrrespectrtorpaymentrofrclaims d.rcomminglingrpremiumsrwithragentsrpersonalrfundsr - r√Answer>A.rhandlingrinsurerrfundsrinrartrustrcapacity
anragentsrfiduciaryrresponsibilityrincludesrhandlingrin surerrfundsrinrartrustrcapacity
Quizr:therauthorityrgrantedrtoranragentrthroughrtherag
ent'srcontractrisrreferredrtoras
a.rabsoluterauthority
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