PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS (VERIFIED
ANSWERS GRADED A+) LATEST UPDATE
2024/2025
In a case where the primary beneficiary predeceases the insured, in the
event of the insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary - CORRECT ANSWER ; The contingent
beneficiary
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
A. mutual - CORRECT ANSWER ; 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
B. reduction - CORRECT ANSWER ; 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
A. an applicant submits an application to the insurer - CORRECT
ANSWER ; 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 - CORRECT ANSWER ; 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 - CORRECT ANSWER ; agents contract with the
principal; the principal grants authority to an agent through the agent's
contract
Which of the following is NOT true regarding a nonqualified retirement
plan? - CORRECT ANSWER ; It needs IRS approval
Which of the following may NOT be included in an insurance
company's advertisement? - CORRECT ANSWER ; That its policies are
covered by a state Guaranty Association
Which of the following is the most common way to transfer risk? -
CORRECT ANSWER ; Purchase Insurance
, Which of the following would provide an underwriter with information
concerning an applicant's health history? - CORRECT ANSWER ; The
medical information bureau
A temporary producer license could be issued without examination to all
of the following EXCEPT. - CORRECT ANSWER ; The spouse of a
retiring insurance producer
All of the following are duties and responsibilities of producers at the
time of application EXCEPT
A) Change any incorrect statement on the application by personally
initialing next to the corrected statement.
B) Explain the nature and type of any receipt the producer is giving to
the applicant
C) Probe beyond the stated questions if the producer feels the applicant
is misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the
application - CORRECT ANSWER ; Change any incorrect statement on
the application by personally initialing next to the corrected statement.
According to the nonforfeiture law, if the owner decides to surrender a
deferred annuity prior to annuitization, the owner is entitled to which of
the following>
A) Guaranteed Surrender Value
B) No Payments
QUESTIONS AND ANSWERS (VERIFIED
ANSWERS GRADED A+) LATEST UPDATE
2024/2025
In a case where the primary beneficiary predeceases the insured, in the
event of the insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary - CORRECT ANSWER ; The contingent
beneficiary
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
A. mutual - CORRECT ANSWER ; 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
B. reduction - CORRECT ANSWER ; 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
A. an applicant submits an application to the insurer - CORRECT
ANSWER ; 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 - CORRECT ANSWER ; 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 - CORRECT ANSWER ; agents contract with the
principal; the principal grants authority to an agent through the agent's
contract
Which of the following is NOT true regarding a nonqualified retirement
plan? - CORRECT ANSWER ; It needs IRS approval
Which of the following may NOT be included in an insurance
company's advertisement? - CORRECT ANSWER ; That its policies are
covered by a state Guaranty Association
Which of the following is the most common way to transfer risk? -
CORRECT ANSWER ; Purchase Insurance
, Which of the following would provide an underwriter with information
concerning an applicant's health history? - CORRECT ANSWER ; The
medical information bureau
A temporary producer license could be issued without examination to all
of the following EXCEPT. - CORRECT ANSWER ; The spouse of a
retiring insurance producer
All of the following are duties and responsibilities of producers at the
time of application EXCEPT
A) Change any incorrect statement on the application by personally
initialing next to the corrected statement.
B) Explain the nature and type of any receipt the producer is giving to
the applicant
C) Probe beyond the stated questions if the producer feels the applicant
is misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the
application - CORRECT ANSWER ; Change any incorrect statement on
the application by personally initialing next to the corrected statement.
According to the nonforfeiture law, if the owner decides to surrender a
deferred annuity prior to annuitization, the owner is entitled to which of
the following>
A) Guaranteed Surrender Value
B) No Payments
