PRIMERICA LIFE INSURANCE EXAM
2026/2027 UPDATED.
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary - Correct answer The contingent beneficiary
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
A. mutual - Correct answer funds not paid out after paying claims and other operating
costs are returned to the policy owners in the form of a dividend. if all funds are paid
out, no dividends are paid
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
B. reduction - Correct answer Reduction: the insured's change in lifestyle and habits
would likely reduce the chances of health problems
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
A. an applicant submits an application to the insurer - Correct answer in insurance, the
offer is usually made by the applicant in the form of an application. acceptance takes
place when an insurer's underwriter approves the application and issues a policy
the causes of loss insured against in an insurance policy are known as
,a. perils
b. losses
c. risks
d. hazards - Correct answer Perils: perils are the causes of loss insured against in an
insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents' insurance license
c. fiduciary contract
d. state provisions - Correct answer agents contract with the principal; the principal
grants authority to an agent through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement plan? - Correct
answer It needs IRS approval
Which of the following may NOT be included in an insurance company's advertisement?
- Correct answer That its policies are covered by a state Guaranty Association
Which of the following is the most common way to transfer risk? - Correct answer
Purchase Insurance
Which of the following would provide an underwriter with information concerning an
applicant's health history? - Correct answer The medical information bureau
A temporary producer license could be issued without examination to all of the following
EXCEPT. - Correct answer The spouse of a retiring insurance producer
All of the following are duties and responsibilities of producers at the time of application
EXCEPT
A) Change any incorrect statement on the application by personally initialing next to the
corrected statement.
B) Explain the nature and type of any receipt the producer is giving to the applicant
C) Probe beyond the stated questions if the producer feels the applicant is
misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the application -
Correct answer Change any incorrect statement on the application by personally
initialing next to the corrected statement.
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity
prior to annuitization, the owner is entitled to which of the following>
A) Guaranteed Surrender Value
B) No Payments
, C) Annuity Dividends
D) Full premium refund without any changes - Correct answer Guaranteed Surrender
Value
Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated?
A) Law of Masses
B) Law of Averages
C) Law of Group Evaluation
D) Law of Large Numbers - Correct answer Law of Large Numbers
When the insured selects the extended term nonforfeiture option, the cash value will be
used to purchase term insurance with what face amount?
a) The same as the original policy minus the cash value
b) Equal to the original policy for as long as the cash values will purchase.
c)In lesser amounts for the remaining policy term of age 100.
d)Equal to the cash value surrendered from the policy - Correct answer Equal to the
original policy for as long as the cash values will purchase:
With this option, the cash value is used as a single premium to purchase the same face
amount as the original policy for as long a period of time as the cash will buy at the
insured's current age.
Your client wants both protection and savings from the insurance and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client?
a) Interest-sensitive whole life
b)Life annuity with period certain
c)Increasing term
d)Limited pay whole life - Correct answer Limited pay whole life:
Premium payments will cease at her age 65, but coverage will continue to her death or
age 100.
An applicant wants to buy a policy that has a cash value element. Which type should
she buy?
a) Term
b) Permanent
c)Stock
d)Investment - Correct answer Permanent:
Unlike term insurance, permanent insurance provides lifetime death protection and a
savings or cash value option.
Because an agent is using stationery with the logo of an insurance company, applicants
for insurance assume that the agent is authorized to transact on behalf of that insurer.
What type of agent authority does this describe?
A) Assumed
b) Apparent
c)Express
2026/2027 UPDATED.
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary - Correct answer The contingent beneficiary
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
A. mutual - Correct answer funds not paid out after paying claims and other operating
costs are returned to the policy owners in the form of a dividend. if all funds are paid
out, no dividends are paid
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
B. reduction - Correct answer Reduction: the insured's change in lifestyle and habits
would likely reduce the chances of health problems
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
A. an applicant submits an application to the insurer - Correct answer in insurance, the
offer is usually made by the applicant in the form of an application. acceptance takes
place when an insurer's underwriter approves the application and issues a policy
the causes of loss insured against in an insurance policy are known as
,a. perils
b. losses
c. risks
d. hazards - Correct answer Perils: perils are the causes of loss insured against in an
insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents' insurance license
c. fiduciary contract
d. state provisions - Correct answer agents contract with the principal; the principal
grants authority to an agent through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement plan? - Correct
answer It needs IRS approval
Which of the following may NOT be included in an insurance company's advertisement?
- Correct answer That its policies are covered by a state Guaranty Association
Which of the following is the most common way to transfer risk? - Correct answer
Purchase Insurance
Which of the following would provide an underwriter with information concerning an
applicant's health history? - Correct answer The medical information bureau
A temporary producer license could be issued without examination to all of the following
EXCEPT. - Correct answer The spouse of a retiring insurance producer
All of the following are duties and responsibilities of producers at the time of application
EXCEPT
A) Change any incorrect statement on the application by personally initialing next to the
corrected statement.
B) Explain the nature and type of any receipt the producer is giving to the applicant
C) Probe beyond the stated questions if the producer feels the applicant is
misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the application -
Correct answer Change any incorrect statement on the application by personally
initialing next to the corrected statement.
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity
prior to annuitization, the owner is entitled to which of the following>
A) Guaranteed Surrender Value
B) No Payments
, C) Annuity Dividends
D) Full premium refund without any changes - Correct answer Guaranteed Surrender
Value
Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated?
A) Law of Masses
B) Law of Averages
C) Law of Group Evaluation
D) Law of Large Numbers - Correct answer Law of Large Numbers
When the insured selects the extended term nonforfeiture option, the cash value will be
used to purchase term insurance with what face amount?
a) The same as the original policy minus the cash value
b) Equal to the original policy for as long as the cash values will purchase.
c)In lesser amounts for the remaining policy term of age 100.
d)Equal to the cash value surrendered from the policy - Correct answer Equal to the
original policy for as long as the cash values will purchase:
With this option, the cash value is used as a single premium to purchase the same face
amount as the original policy for as long a period of time as the cash will buy at the
insured's current age.
Your client wants both protection and savings from the insurance and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client?
a) Interest-sensitive whole life
b)Life annuity with period certain
c)Increasing term
d)Limited pay whole life - Correct answer Limited pay whole life:
Premium payments will cease at her age 65, but coverage will continue to her death or
age 100.
An applicant wants to buy a policy that has a cash value element. Which type should
she buy?
a) Term
b) Permanent
c)Stock
d)Investment - Correct answer Permanent:
Unlike term insurance, permanent insurance provides lifetime death protection and a
savings or cash value option.
Because an agent is using stationery with the logo of an insurance company, applicants
for insurance assume that the agent is authorized to transact on behalf of that insurer.
What type of agent authority does this describe?
A) Assumed
b) Apparent
c)Express
