©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
Primerica - Life Insurance Policies (AZ) Exam
Questions With Correct Answers 100%
Verified.
Which of the following best describes annually renewable term insurance?
A - It is level term insurance.
B - It requires proof of insurability at each renewal.
C - Neither the premium nor the death benefit is affected by the insured's age.
D - It provides an annually increasing death benefit. - Answer✔A - It is level term insurance.
Annually renewable term is a form of level term insurance that offers the most insurance at the
lowest cost.
Annually renewable term policies provide a level death benefit for a premium that
A - Fluctuates.
B - Increases annually.
C - Decreases annually.
D - Remains level. - Answer✔B - Increases annually.
Annually renewable term policies provide a level death benefit for a premium that increases
each year with the age of the insured.
A Straight Life policy has what type of premium?
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
A - An increasing annual premium for the life of the insured
B - A decreasing annual premium for the life of the insured
C - A variable annual premium for the life of the insured
D - A level annual premium for the life of the insured - Answer✔D - A level annual premium for
the life of the insured
Straight Life policies charge a level annual premium for the lifetime of the insured and provide a
level, guaranteed death benefit.
Which of the following types of insurance policies is most commonly used in credit life
insurance?
A - Equity indexed life
B - Decreasing term
C - Increasing term
D - Whole life - Answer✔B - Decreasing term
Credit insurance is a special type of coverage written to insure the life of the debtor and pay off
the balance of a loan in the event of the death of the debtor. It is usually written as decreasing
term insurance.
Which of the following statements about group life is correct?
A - The cost of coverage is based on the ratio of men and women in the group.
B - The premiums are higher than in an individual policy because there is no medical exam.
C - The group sponsor receives a Certificate of Insurance.
D - The policy can be converted to an individual term insurance policy. - Answer✔A - The cost of
coverage is based on the ratio of men and women in the group.
2
Primerica - Life Insurance Policies (AZ) Exam
Questions With Correct Answers 100%
Verified.
Which of the following best describes annually renewable term insurance?
A - It is level term insurance.
B - It requires proof of insurability at each renewal.
C - Neither the premium nor the death benefit is affected by the insured's age.
D - It provides an annually increasing death benefit. - Answer✔A - It is level term insurance.
Annually renewable term is a form of level term insurance that offers the most insurance at the
lowest cost.
Annually renewable term policies provide a level death benefit for a premium that
A - Fluctuates.
B - Increases annually.
C - Decreases annually.
D - Remains level. - Answer✔B - Increases annually.
Annually renewable term policies provide a level death benefit for a premium that increases
each year with the age of the insured.
A Straight Life policy has what type of premium?
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
A - An increasing annual premium for the life of the insured
B - A decreasing annual premium for the life of the insured
C - A variable annual premium for the life of the insured
D - A level annual premium for the life of the insured - Answer✔D - A level annual premium for
the life of the insured
Straight Life policies charge a level annual premium for the lifetime of the insured and provide a
level, guaranteed death benefit.
Which of the following types of insurance policies is most commonly used in credit life
insurance?
A - Equity indexed life
B - Decreasing term
C - Increasing term
D - Whole life - Answer✔B - Decreasing term
Credit insurance is a special type of coverage written to insure the life of the debtor and pay off
the balance of a loan in the event of the death of the debtor. It is usually written as decreasing
term insurance.
Which of the following statements about group life is correct?
A - The cost of coverage is based on the ratio of men and women in the group.
B - The premiums are higher than in an individual policy because there is no medical exam.
C - The group sponsor receives a Certificate of Insurance.
D - The policy can be converted to an individual term insurance policy. - Answer✔A - The cost of
coverage is based on the ratio of men and women in the group.
2
