PRIMERICA LIFE INSURANCE EXAM LATEST 2023-2024 ACTUAL EXAM 300 REAL EXAM QUESTIONS AND CORRECT ANSWERS WITH RATIONALES (100% VERIFIED ANSWERS) |AGRADE

PRIMERICA LIFE INSURANCE EXAM LATEST 2023-2024

ACTUAL EXAM 300 REAL EXAM QUESTIONS AND

CORRECT ANSWERS WITH RATIONALES (100% VERIFIED

ANSWERS) |AGRADE

which of the following is NOT required for a producer to tell a prospect?

a. how the insurer would use any outside information regarding the

applicant

b. an explanation of products that the insurer is selling

c. what requirements the producer needed to meet to obtain the

insurance license

d. from what outside sources the insurer would seek information,

regarding the insured - ANSWER- C. what requirements the producer

needed to meet to obtain the insurance license

Rationale: agents are required to inform prospects of the products they

are selling, as well as their information collecting practices

which of the following statements concerning buy-sell agreements is

true?

a. premium paid are deductible as a business expense

b. benefits received are considered income taxable

c. buy-sell agreements pay in the event of a medical emergency

d. buy-sell agreements are normally funded with a life insurance

expectancy - ANSWER- D. buy-sell agreements are normally funded

with life insurance expectancy

Rationale: a buy-sell agreements is simply a contract that establishes

what willl be done with a business in the event that an owner dies. Buysell agreements are normally funded with a life insurance policy

Who may complete a paramedical report?

a. an underwriter

b. a nursing assistant

c. a registered nurse

d. a spouse - ANSWER- C. a registered nurse

Rationale: paramedical reports are completed by paramedics or

registered nurses. Full medical expectations are reserved for those

wanting higher coverage or for those who have more complex medical

history

the term "illustrations" in a life insurance policy refers to

a. a presentation of non guaranteed elements of a policy

b. a depiction of policy benefits and guarantees

c. pictures accompanying a policy

d. charts and graphs - ANSWER- A. a presentation of non guaranteed

elements of a policy

Rationale: the term "illustrations" means presentation of depiction that

includes non guaranteed elements of a policy of individual of group life

insurance over a period of years

which is generally true regarding insureds who have been classified as

preferred risks?

a. they can borrow higher amounts off of their policies

b. they can decide when to pay their monthly premiums

c. they keep a higher percentage of any interest earned on their policies

d. their premiums are lower - ANSWER- D. their premiums are lower

Rationale: the preferred risk classification indicates that an insured is in

excellent physical condition and employs healthy lifestyles and habits.

These individuals qualify to lower premiums than those in other

categories

all of the following are requirements for life insurance illustrations

EXCEPT?

a. they may only be used as approved

b. they must identify non guaranteed values

c. they must differentiate between guaranteed and projected amounts

d. they must be part of the contract - ANSWER- D. they must be part of

the contract

Rationale: an illustration may not be altered by an agent and must

clearly state that it is not part of the contract. It is legal to list non

guaranteed values in the contract, but they must be specifically labeled

as projected, not guaranteed values

Partners in a business enter into a buy-sell agreement to purchase life

insurance, which states that should one of them die prematurely, the

other would be financially able to buy the interest of the deceased

partner. What type of insurance policy may be used to fund this

agreement?

a. term insurance only

b. permanent insurance only

c. universal life insurance only

d. any form of life insurance - ANSWER- D.any form of life insurance

Rationale: any form of life insurance may be used to fund a buy-sell

agreement

an insurance policy that only requires a payment of premium at its

inception, provides insurance protection for the life of the insured and

matures at the insured's age 100 is called?

a. Modified Endowment Contract (MEG)

b. level term life

c. graded premium whole life

d. single premium whole life - ANSWER- D. single premium whole life

Rationale: single premium whole life requires the entire premium to be

paid in one lump sum at the policy's inception

Twin brothers are starting a new business. They know it will take several

years to build the business to the point that they can pay off the debt

incurred in starting the business. What type of insurance would be the

most affordable and still provide a death benefit should one of them die?

a. ordinary life

b. joint life

c. decreasing term

d. whole life - ANSWER- B. joint life

Rationale: a joint life policy covering 2 lives would be the least

expensive because the premiums are based on an average age, and it

would pay a death benefit only at the first death

an individual has just borrowed $10,000 from his bank on a 5-year

installment loan requiring monthly payments. What type of the life

insurance policy would be best suited to this situation?

a. universal life

b. whole life

c. decreasing term

d. variable life - ANSWER- C. decreasing term

Rationale: a decreasing term policy's face amount decreases as the

amount of debt is reduced