PRIMERICA LIFE INSURANCE NEWEST
2026/2027 ACTUAL EXAM STUDY GUIDE
COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED
A+||NEWEST VERSION
Any insurer who engages in the insurance business and violates the Code with
respect to insurance replacement shall, on the first violation - ANSWER Be
fined a sum of $10,000.
An insurance company is domiciled in Montana and transacts insurance in
Wyoming. Which term best describes the insurer's classification in Wyoming? -
ANSWER Foreign
To sell variable life insurance policies, an agent must receive all of the following
EXCEPT - ANSWER SEC registration.
An agent is acting ethically in all of the following situations EXCEPT -
ANSWER Always representing the insured.
A contract which one party undertakes to indemnify another against loss is called -
ANSWER Insurance.
,According to the Law of Agency, a principal is represented by a/an -
ANSWER Agent.
An insured purchased a Life Insurance policy. The agent told him that depending
upon the company's investments and expense factors, the cash values could change
from those shown in the policy at issue time. The policy is a/an -
ANSWER Interest-sensitive Whole Life.
According to the Code, how many separate requirements should an insurance
policy have? - ANSWER 6
The type of policy that can be changed from one that does not accumulate cash
value to the one that does is a - ANSWER Convertible Term Policy.
Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value? - ANSWER Predicted needs of the family
after the insured's death.
What kind of policy issues certificates of insurance to insureds? -
ANSWER Group insurance
Which of the following is NOT true regarding the needs approach method of
determining the value of an individual's life? - ANSWER Need is predicted
using the number of years until the insured's retirement.
,Nonforfeiture Values - ANSWER Those guaranteed values in a life insurance
policy that cannot be taken from the insured, even if he or she ceases to pay
premiums.
Nonmedical - ANSWER A life or health insurance policy that is underwritten
based on the insured's statement of health rather than a medical examination.
An insurer receives a report regarding a potential insured that includes the
insured's financial status, hobbies, and habits. What type of report is that? -
ANSWER Inspection Report
Which of the following is an example of liquidity in a life insurance contract? -
ANSWER The cash value available to the policy owner
The risk of loss may be classified as - ANSWER Pure risk and speculative risk.
All of the following entities regulate variable life policies EXCEPT -
ANSWER The Guaranty Association
If an insurance company makes a statement that its policies are guaranteed by the
existence of the Insurance Guaranty Association, that would be considered -
ANSWER An unfair trade practice
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
- ANSWER Either the amount paid into the plan or the cash value of the plan,
whichever is the greater amount
, The Waiver of Cost of Insurance rider is found in what type of insurance? -
ANSWER Universal Life
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? -
ANSWER Consideration
A corporation is the owner and beneficiary of the key person life policy. If the
corporation collects the policy benefit, then - ANSWER the benefit is received
tax-free
Which is TRUE about the cash surrender nonforfeiture option? -
ANSWER Funds exceeding the premium paid are taxable as ordinary income.
Which of the following statements is TRUE concerning the Accidental Death
Rider? - ANSWER It will pay double or triple the face amount.
Which of the following Life Insurance policies would be considered interest-
sensitive? - ANSWER Universal Life
An employee quits her job where she has a balance of $10,000 in her qualified
plan. The balance was paid out directly to the employee in order for her to move
the funds to a new account. If she decides to rollover her plan to a Traditional IRA,
how much will she receive from the plan administrator, and how long does she
have to complete the tax-free rollover? - ANSWER $8000, 60 days
2026/2027 ACTUAL EXAM STUDY GUIDE
COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED
A+||NEWEST VERSION
Any insurer who engages in the insurance business and violates the Code with
respect to insurance replacement shall, on the first violation - ANSWER Be
fined a sum of $10,000.
An insurance company is domiciled in Montana and transacts insurance in
Wyoming. Which term best describes the insurer's classification in Wyoming? -
ANSWER Foreign
To sell variable life insurance policies, an agent must receive all of the following
EXCEPT - ANSWER SEC registration.
An agent is acting ethically in all of the following situations EXCEPT -
ANSWER Always representing the insured.
A contract which one party undertakes to indemnify another against loss is called -
ANSWER Insurance.
,According to the Law of Agency, a principal is represented by a/an -
ANSWER Agent.
An insured purchased a Life Insurance policy. The agent told him that depending
upon the company's investments and expense factors, the cash values could change
from those shown in the policy at issue time. The policy is a/an -
ANSWER Interest-sensitive Whole Life.
According to the Code, how many separate requirements should an insurance
policy have? - ANSWER 6
The type of policy that can be changed from one that does not accumulate cash
value to the one that does is a - ANSWER Convertible Term Policy.
Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value? - ANSWER Predicted needs of the family
after the insured's death.
What kind of policy issues certificates of insurance to insureds? -
ANSWER Group insurance
Which of the following is NOT true regarding the needs approach method of
determining the value of an individual's life? - ANSWER Need is predicted
using the number of years until the insured's retirement.
,Nonforfeiture Values - ANSWER Those guaranteed values in a life insurance
policy that cannot be taken from the insured, even if he or she ceases to pay
premiums.
Nonmedical - ANSWER A life or health insurance policy that is underwritten
based on the insured's statement of health rather than a medical examination.
An insurer receives a report regarding a potential insured that includes the
insured's financial status, hobbies, and habits. What type of report is that? -
ANSWER Inspection Report
Which of the following is an example of liquidity in a life insurance contract? -
ANSWER The cash value available to the policy owner
The risk of loss may be classified as - ANSWER Pure risk and speculative risk.
All of the following entities regulate variable life policies EXCEPT -
ANSWER The Guaranty Association
If an insurance company makes a statement that its policies are guaranteed by the
existence of the Insurance Guaranty Association, that would be considered -
ANSWER An unfair trade practice
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
- ANSWER Either the amount paid into the plan or the cash value of the plan,
whichever is the greater amount
, The Waiver of Cost of Insurance rider is found in what type of insurance? -
ANSWER Universal Life
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? -
ANSWER Consideration
A corporation is the owner and beneficiary of the key person life policy. If the
corporation collects the policy benefit, then - ANSWER the benefit is received
tax-free
Which is TRUE about the cash surrender nonforfeiture option? -
ANSWER Funds exceeding the premium paid are taxable as ordinary income.
Which of the following statements is TRUE concerning the Accidental Death
Rider? - ANSWER It will pay double or triple the face amount.
Which of the following Life Insurance policies would be considered interest-
sensitive? - ANSWER Universal Life
An employee quits her job where she has a balance of $10,000 in her qualified
plan. The balance was paid out directly to the employee in order for her to move
the funds to a new account. If she decides to rollover her plan to a Traditional IRA,
how much will she receive from the plan administrator, and how long does she
have to complete the tax-free rollover? - ANSWER $8000, 60 days
