Primerica Practice Test 2023 Possible Questions and
Answers
The receipt given to a life insurance applicant when the application is completed
and the initial premium is received is called a(n)
conditional receipt
Statements in the application for insurance that are believed to be true to the best
of the applicant's knowledge are called
representations
An annuity is considered fixed when it does all of the following EXCEPT
provides the annuitant with an interest rate that is the lesser of the guaranteed or
current rate
The most common type of whole life insurance where premiums are payable over
the whole life of the insured to age 100 is called
continuous premium (straight) life
The policy and a copy of the application, along with any riders and amendments,
is called the
entire contract
Money borrowed from the policy's cash value is
not taxable
Which of the following annuity products requires an agent to hold a securities
license?
variable annuities
Which type of annuity settlement stops when the annuitant dies?
life income annuity
At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty?
59.5
Which settlement option guarantees an income for 2 or more recipients for as
long as they live
joint and survivor
Two business partners own life insurance on each other. If one partner dies,
which of the following contracts will allow the surviving partner to use the death
benefit to purchase the deceased's business interests?
buy-sell agreement
Which of the following would be considered a flexible premium policy?
universal life
If an annuitant dies during the accumulation period, what will the beneficiary
receive?
either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered
nonadmitted
To prevent people from profiting from a loss, insurers must be certain
insurable interest exists
Answers
The receipt given to a life insurance applicant when the application is completed
and the initial premium is received is called a(n)
conditional receipt
Statements in the application for insurance that are believed to be true to the best
of the applicant's knowledge are called
representations
An annuity is considered fixed when it does all of the following EXCEPT
provides the annuitant with an interest rate that is the lesser of the guaranteed or
current rate
The most common type of whole life insurance where premiums are payable over
the whole life of the insured to age 100 is called
continuous premium (straight) life
The policy and a copy of the application, along with any riders and amendments,
is called the
entire contract
Money borrowed from the policy's cash value is
not taxable
Which of the following annuity products requires an agent to hold a securities
license?
variable annuities
Which type of annuity settlement stops when the annuitant dies?
life income annuity
At what age can a participant receive distributions from a qualified plan without
incurring a 10% penalty?
59.5
Which settlement option guarantees an income for 2 or more recipients for as
long as they live
joint and survivor
Two business partners own life insurance on each other. If one partner dies,
which of the following contracts will allow the surviving partner to use the death
benefit to purchase the deceased's business interests?
buy-sell agreement
Which of the following would be considered a flexible premium policy?
universal life
If an annuitant dies during the accumulation period, what will the beneficiary
receive?
either the cash value or the premiums paid, whichever is greater
Any insurer who is NOT approved to do business in this state is considered
nonadmitted
To prevent people from profiting from a loss, insurers must be certain
insurable interest exists
