Primerica Life Insurance Exam 2026–2027 | Complete Practice
Questions & 100% Verified Correct Answers | Latest Primerica Life
Insurance Licensing Exam Study Guide | Comprehensive Insurance
Concepts, Policy Rules, State Regulations & Exam Prep for
Guaranteed Success
THIS EXAM CONTAINS:
✔ Complete Practice Questions
✔ Verified Correct Answers
✔ Easy-to-Understand Explanations
✔ Exam-Focused Study Material
✔ Latest 2026–2027 Updates
✔ Beginner-Friendly Review Format
✔ Accurate Insurance Terminology
✔ Comprehensive Exam Preparation
,Life Insurance & Producer Licensing
1. An insured purchased an insurance policy 5 years ago. Last year, she
received a dividend check from the insurance company that was not
taxable. This year, she did not receive a check from the insurer. From what
type of insurer did the insured purchase the policy?
• a. mutual
• b. reciprocal
• c. nonprofit service organization
• d. stock
Answer: a. mutual
2. Following a career change, an insured is no longer required to perform
many physical activities, so he has implemented a program where he walks
and jogs for 45 minutes each morning. The insured has also eliminated
most fatty foods from his diet. Which method of dealing with risk does this
scenario describe?
• a. retention
• b. reduction
• c. transfer
• d. avoidance
Answer: b. reduction
3. In insurance, an offer is usually made when:
• a. an applicant submits an application to the insurer
• b. the insurer approves the application and receives the initial
premium
• c. the agent hands the policy to the policyholder
• d. an agent explains a policy to a potential applicant
Answer: a. an applicant submits an application to the insurer
,4. The causes of loss insured against in an insurance policy are known as:
• a. perils
• b. losses
• c. risks
• d. hazards
Answer: a. perils
5. What documentation grants express authority to an agent?
• a. agent's contract with the principal
• b. agent's insurance license
• c. fiduciary contract
• d. state provisions
Answer: a. agent's contract with the principal
6. Which of the following best describes an insurance company that has
been formed under the laws of this state?
• a. domestic
• b. sovereign
• c. alien
• d. foreign
Answer: a. domestic
7. Which of the following factors is NOT considered by an underwriter
when determining the premium rates for an individual seeking insurance?
• a. medical history
• b. sex
• c. age
• d. race
Answer: d. race
, 8. In insurance transactions, fiduciary responsibility means:
•a. handling insurer funds in a trust capacity
• b. maintaining good credit record
• c. being liable with respect to payment of claims
• d. commingling premiums with agent's personal funds
Answer: a. handling insurer funds in a trust capacity
9. The authority granted to an agent through the agent's contract is
referred to as:
•a. absolute authority
• b. express authority
• c. apparent authority
• d. implied authority
Answer: b. express authority
10. Insurance policies are not drawn up through negotiations, and an
insured has little to say about its provisions. What contract characteristic
does this describe?
•a. unilateral
• b. conditional
• c. personal
• d. adhesion
Answer: d. adhesion
11. Which of the following insurers are owned by stockholders who have
the usual rights of ownership, including the right of voting?
• a. reciprocal
• b. fraternal
• c. stock
Questions & 100% Verified Correct Answers | Latest Primerica Life
Insurance Licensing Exam Study Guide | Comprehensive Insurance
Concepts, Policy Rules, State Regulations & Exam Prep for
Guaranteed Success
THIS EXAM CONTAINS:
✔ Complete Practice Questions
✔ Verified Correct Answers
✔ Easy-to-Understand Explanations
✔ Exam-Focused Study Material
✔ Latest 2026–2027 Updates
✔ Beginner-Friendly Review Format
✔ Accurate Insurance Terminology
✔ Comprehensive Exam Preparation
,Life Insurance & Producer Licensing
1. An insured purchased an insurance policy 5 years ago. Last year, she
received a dividend check from the insurance company that was not
taxable. This year, she did not receive a check from the insurer. From what
type of insurer did the insured purchase the policy?
• a. mutual
• b. reciprocal
• c. nonprofit service organization
• d. stock
Answer: a. mutual
2. Following a career change, an insured is no longer required to perform
many physical activities, so he has implemented a program where he walks
and jogs for 45 minutes each morning. The insured has also eliminated
most fatty foods from his diet. Which method of dealing with risk does this
scenario describe?
• a. retention
• b. reduction
• c. transfer
• d. avoidance
Answer: b. reduction
3. In insurance, an offer is usually made when:
• a. an applicant submits an application to the insurer
• b. the insurer approves the application and receives the initial
premium
• c. the agent hands the policy to the policyholder
• d. an agent explains a policy to a potential applicant
Answer: a. an applicant submits an application to the insurer
,4. The causes of loss insured against in an insurance policy are known as:
• a. perils
• b. losses
• c. risks
• d. hazards
Answer: a. perils
5. What documentation grants express authority to an agent?
• a. agent's contract with the principal
• b. agent's insurance license
• c. fiduciary contract
• d. state provisions
Answer: a. agent's contract with the principal
6. Which of the following best describes an insurance company that has
been formed under the laws of this state?
• a. domestic
• b. sovereign
• c. alien
• d. foreign
Answer: a. domestic
7. Which of the following factors is NOT considered by an underwriter
when determining the premium rates for an individual seeking insurance?
• a. medical history
• b. sex
• c. age
• d. race
Answer: d. race
, 8. In insurance transactions, fiduciary responsibility means:
•a. handling insurer funds in a trust capacity
• b. maintaining good credit record
• c. being liable with respect to payment of claims
• d. commingling premiums with agent's personal funds
Answer: a. handling insurer funds in a trust capacity
9. The authority granted to an agent through the agent's contract is
referred to as:
•a. absolute authority
• b. express authority
• c. apparent authority
• d. implied authority
Answer: b. express authority
10. Insurance policies are not drawn up through negotiations, and an
insured has little to say about its provisions. What contract characteristic
does this describe?
•a. unilateral
• b. conditional
• c. personal
• d. adhesion
Answer: d. adhesion
11. Which of the following insurers are owned by stockholders who have
the usual rights of ownership, including the right of voting?
• a. reciprocal
• b. fraternal
• c. stock
