PRIMERICA LIFE INSURANCE
EXAM 2026 WITH CORRECT
ANSWERS ALREADY GRADED
A+
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
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 - ANSWER --A. perils
,perils are the causes of loss insured against in an insurance policy
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
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 - ANSWER --B. reduction
the insured's change in lifestyle and habits would likely reduce the chances of health problems
,what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions - ANSWER --A. agents contract with the principal
the principal grants authority to an agent through the agent's contract
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
a company is domestic when doing business within the state in which it is incorporated
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
, age, medical history, and sex provide sound statistical date for determining the probability of
loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is
not sound statistical data to show that they effect the probability of loss; therefore, they are
considered to be discriminatory
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
d. mutual - ANSWER --C. stock
only stock insurance companies are owned and controlled by stockholders
which of the following best describes the concept that the insured pays a small amount of
premium for a large amount of risk on the part of the insurance company?
a. subrogation
b. warranty
c. aleatory
d. adhesion - ANSWER --C. aleatory
an insurance contract is an aleatory contract in that it requires a relatively small amount of
premium for a large risk
EXAM 2026 WITH CORRECT
ANSWERS ALREADY GRADED
A+
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
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 - ANSWER --A. perils
,perils are the causes of loss insured against in an insurance policy
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
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 - ANSWER --B. reduction
the insured's change in lifestyle and habits would likely reduce the chances of health problems
,what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions - ANSWER --A. agents contract with the principal
the principal grants authority to an agent through the agent's contract
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
a company is domestic when doing business within the state in which it is incorporated
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
, age, medical history, and sex provide sound statistical date for determining the probability of
loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is
not sound statistical data to show that they effect the probability of loss; therefore, they are
considered to be discriminatory
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
d. mutual - ANSWER --C. stock
only stock insurance companies are owned and controlled by stockholders
which of the following best describes the concept that the insured pays a small amount of
premium for a large amount of risk on the part of the insurance company?
a. subrogation
b. warranty
c. aleatory
d. adhesion - ANSWER --C. aleatory
an insurance contract is an aleatory contract in that it requires a relatively small amount of
premium for a large risk
