PRIMERICA LIFE INSURANCE EXAM
UPDATED ACTUAL EXAM PAPER
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS GRADED A+
◉ 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
◉ 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
◉ 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
◉ 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 agents personal funds.
Answer: A. handling insurer funds in a trust capacity
an agents fiduciary responsibility includes handling insurer funds in a
trust capacity
◉ 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.
UPDATED ACTUAL EXAM PAPER
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS GRADED A+
◉ 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
◉ 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
◉ 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
◉ 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 agents personal funds.
Answer: A. handling insurer funds in a trust capacity
an agents fiduciary responsibility includes handling insurer funds in a
trust capacity
◉ 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.
