PRIMERICA - LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS//LATEST
VERSION 2024/2025
What is insurance? - CORRECT ANSWER ; Transfer of the
possibility of loss (risk) to an insurance company.
What is a risk? - CORRECT ANSWER ; The uncertainty of
financial loss
There are two types of loss - CORRECT ANSWER ; Pure and
Speculative
Which type of loss is insurable? - CORRECT ANSWER ; Pure
Why is Pure loss insurable? - CORRECT ANSWER ; Loss must be
financial and uncertain. No financial gain can occur.
What causes loss? - CORRECT ANSWER ; Peril; such as fire,
accident or flood
What causes a peril? - CORRECT ANSWER ; A hazard
,What is a hazard? - CORRECT ANSWER ; Increases the likelihood
of a loss; such as smoking
What is the concept called, that predicts the appropriate number
of deaths that should occur within a similar group
of people (exposure) within a given period of time? - CORRECT
ANSWER ; Law of Large Numbers
What is adverse selection? - CORRECT ANSWER ; People in bad
health keep their policy in force longer than people in good
health
As an agent, you are a legal representative of the
______________. - CORRECT ANSWER ; company
The person who pays for the policy of insurance is the -
CORRECT ANSWER ; policy owner
The _____________ is the person who receives the benefits
from the insurance policy - CORRECT ANSWER ; beneficiary
The person covered by the insurance policy is the
____________. - CORRECT ANSWER ; insured
, The insurance company is the ___________. - CORRECT
ANSWER ; insurer
To buy insurance, the policyowner must have ______________
in the insured at the
_________________________________________________. -
CORRECT ANSWER ; insurable interest; time of purchase but not
at
time of insured's death.
The 5 recognizable areas of insurable interest are ___________.
- CORRECT ANSWER ; 1. your own life
2. family members
3. business partners
4. key employee
5.financial obligation.
What is person called who holds a position of special trust and
confidence? - CORRECT ANSWER ; Fiduciary
Waiver vs. Estoppel - CORRECT ANSWER ; Waiver is when you
voluntarily give up your legal right. Estoppel is when you are
QUESTIONS AND ANSWERS//LATEST
VERSION 2024/2025
What is insurance? - CORRECT ANSWER ; Transfer of the
possibility of loss (risk) to an insurance company.
What is a risk? - CORRECT ANSWER ; The uncertainty of
financial loss
There are two types of loss - CORRECT ANSWER ; Pure and
Speculative
Which type of loss is insurable? - CORRECT ANSWER ; Pure
Why is Pure loss insurable? - CORRECT ANSWER ; Loss must be
financial and uncertain. No financial gain can occur.
What causes loss? - CORRECT ANSWER ; Peril; such as fire,
accident or flood
What causes a peril? - CORRECT ANSWER ; A hazard
,What is a hazard? - CORRECT ANSWER ; Increases the likelihood
of a loss; such as smoking
What is the concept called, that predicts the appropriate number
of deaths that should occur within a similar group
of people (exposure) within a given period of time? - CORRECT
ANSWER ; Law of Large Numbers
What is adverse selection? - CORRECT ANSWER ; People in bad
health keep their policy in force longer than people in good
health
As an agent, you are a legal representative of the
______________. - CORRECT ANSWER ; company
The person who pays for the policy of insurance is the -
CORRECT ANSWER ; policy owner
The _____________ is the person who receives the benefits
from the insurance policy - CORRECT ANSWER ; beneficiary
The person covered by the insurance policy is the
____________. - CORRECT ANSWER ; insured
, The insurance company is the ___________. - CORRECT
ANSWER ; insurer
To buy insurance, the policyowner must have ______________
in the insured at the
_________________________________________________. -
CORRECT ANSWER ; insurable interest; time of purchase but not
at
time of insured's death.
The 5 recognizable areas of insurable interest are ___________.
- CORRECT ANSWER ; 1. your own life
2. family members
3. business partners
4. key employee
5.financial obligation.
What is person called who holds a position of special trust and
confidence? - CORRECT ANSWER ; Fiduciary
Waiver vs. Estoppel - CORRECT ANSWER ; Waiver is when you
voluntarily give up your legal right. Estoppel is when you are
