PRIMERICA LIFE
INSURANCE EXAM
2026-2027
Master Exam Prep Bundle
(Verified Questions & Answers)
A+ Grade Guaranteed
,Following a career change, an insured is no longer required to B. reduction
perform many physical activities, so he has implemented a
program where he walks and jogs for 45 minutes each the insured's change in lifestyle and habits would likely reduce the chances of health
morning. The insured has also eliminated most fatty foods problems
from his diet. Which method of dealing with risk does this
scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
In insurance, an offer is usually made when A. an applicant submits an application to the insurer
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.
b. the insurer approves the application and receives the initial acceptance takes place when an insurer's underwriter approves the application and
premium issues a policy
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant
the causes of loss insured against in an insurance policy are A. perils
known as
perils are the causes of loss insured against in an insurance policy
a. perils
b. losses
c. risks
d. hazards
what documentation grants express authority to an agent? A. agents contract with the principal
a. agents contract with the principal the principal grants authority to an agent through the agent's contract
b. agents insurance license
c. fiduciary contract
d. state provisions
,which of the following best describes an insurance company A. domestic
that has been formed under the laws of this state?
a company is domestic when doing business within the state in which it is incorporated
a. domestic
b. sovereign
c. alien
d. foreign
which of the following factors is NOT considered by an D. race
underwriter when determining the premium rates for an
individual seeking insurance? 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
a. medical history used because there is not sound statistical data to show that they effect the probability of
b. sex loss; therefore, they are considered to be discriminatory
c. age
d. race
in insurance transactions, fiduciary responsibility means A. handling insurer funds in a trust capacity
a. handling insurer funds in a trust capacity an agents fiduciary responsibility includes 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 agents personal funds
the authority granted to an agent through the agent's contract B. express authority
is referred to as
express powers are written into the contract between the insurer and the agent
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
insurance policies are not drawn up though negotiations, and D. adhesion
an insured has little to say about its provisions. what contract
characteristic does this describe? a contract of adhesion is prepared by only the insurer; the insured's only option is to
accept or reject the policy as its written
a. unilateral
b. conditional
c. personal
d. adhesion
, which of the following insurers are owned by stockholders C. stock
who have the usual rights of ownership, including the right of
voting? only stock insurance companies are owned and controlled by stockholders
a. reciprocal
b. fraternal
c. stock
d. mutual
which of the following best describes the concept that the C. aleatory
insured pays a small amount of premium for a large amount of
risk on the part of the insurance company? an insurance contract is an aleatory contract in that it requires a relatively small amount of
premium for a large risk
a. subrogation
b. warranty
c. aleatory
d. adhesion
When an insured makes truthful statements on the application D. consideration
for insurance and pays the required premium, it is known as
which of the following? consideration is something of value that each party gives to the other. The consideration
on the part of the insured is the payment of premium and the representations made in the
a. legal purpose application
b. contract of adhesion
c. acceptance
d. consideration
which of the following would qualify as a competent party in D. the applicant has a prior felony conviction
an insurance contract?
when an insurer and insured enter into a contract, both parties must be legal of age and
a. the applicant is intoxicated at the time of application mentally competent. It is legal for a person convicted of a felony to buy an insurance
b. the applicant is 12 year old student contract. An intoxicated person, however, may not be mentally competent, a 12 year old
c. the applicant is under the influence of a mind-impairing student is considered to be underage in most states and a person under mind-impairing
medication at the time of application medication most likely would not be mentally competent
d. the applicant has a prior felony conviction
INSURANCE EXAM
2026-2027
Master Exam Prep Bundle
(Verified Questions & Answers)
A+ Grade Guaranteed
,Following a career change, an insured is no longer required to B. reduction
perform many physical activities, so he has implemented a
program where he walks and jogs for 45 minutes each the insured's change in lifestyle and habits would likely reduce the chances of health
morning. The insured has also eliminated most fatty foods problems
from his diet. Which method of dealing with risk does this
scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
In insurance, an offer is usually made when A. an applicant submits an application to the insurer
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.
b. the insurer approves the application and receives the initial acceptance takes place when an insurer's underwriter approves the application and
premium issues a policy
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant
the causes of loss insured against in an insurance policy are A. perils
known as
perils are the causes of loss insured against in an insurance policy
a. perils
b. losses
c. risks
d. hazards
what documentation grants express authority to an agent? A. agents contract with the principal
a. agents contract with the principal the principal grants authority to an agent through the agent's contract
b. agents insurance license
c. fiduciary contract
d. state provisions
,which of the following best describes an insurance company A. domestic
that has been formed under the laws of this state?
a company is domestic when doing business within the state in which it is incorporated
a. domestic
b. sovereign
c. alien
d. foreign
which of the following factors is NOT considered by an D. race
underwriter when determining the premium rates for an
individual seeking insurance? 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
a. medical history used because there is not sound statistical data to show that they effect the probability of
b. sex loss; therefore, they are considered to be discriminatory
c. age
d. race
in insurance transactions, fiduciary responsibility means A. handling insurer funds in a trust capacity
a. handling insurer funds in a trust capacity an agents fiduciary responsibility includes 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 agents personal funds
the authority granted to an agent through the agent's contract B. express authority
is referred to as
express powers are written into the contract between the insurer and the agent
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
insurance policies are not drawn up though negotiations, and D. adhesion
an insured has little to say about its provisions. what contract
characteristic does this describe? a contract of adhesion is prepared by only the insurer; the insured's only option is to
accept or reject the policy as its written
a. unilateral
b. conditional
c. personal
d. adhesion
, which of the following insurers are owned by stockholders C. stock
who have the usual rights of ownership, including the right of
voting? only stock insurance companies are owned and controlled by stockholders
a. reciprocal
b. fraternal
c. stock
d. mutual
which of the following best describes the concept that the C. aleatory
insured pays a small amount of premium for a large amount of
risk on the part of the insurance company? an insurance contract is an aleatory contract in that it requires a relatively small amount of
premium for a large risk
a. subrogation
b. warranty
c. aleatory
d. adhesion
When an insured makes truthful statements on the application D. consideration
for insurance and pays the required premium, it is known as
which of the following? consideration is something of value that each party gives to the other. The consideration
on the part of the insured is the payment of premium and the representations made in the
a. legal purpose application
b. contract of adhesion
c. acceptance
d. consideration
which of the following would qualify as a competent party in D. the applicant has a prior felony conviction
an insurance contract?
when an insurer and insured enter into a contract, both parties must be legal of age and
a. the applicant is intoxicated at the time of application mentally competent. It is legal for a person convicted of a felony to buy an insurance
b. the applicant is 12 year old student contract. An intoxicated person, however, may not be mentally competent, a 12 year old
c. the applicant is under the influence of a mind-impairing student is considered to be underage in most states and a person under mind-impairing
medication at the time of application medication most likely would not be mentally competent
d. the applicant has a prior felony conviction
