PRIMERICA LIFE INSURANCE EXAM 2025 - ALL QUESTIONS ARE c. c. c. c. c. c. c. c.
c. ANSWERED CORRECTLY
Aninsured purchased an insurancepolicy 5years ago. Last year, shereceived adividend check from
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
the insurance company that was not taxable. This year, she did not receive a check from the
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
insurer. From what type of insurer did the insured purchase the policy?
c. c. c. c. c. c. c. c. c. c. c. c.
a. mutual
b. reciprocal
c. nonprofitservice organization c. c.
d. stock - ANSWER c. c. A.mutual c.
funds not paid out after paying claims and other operatingcosts are returned to the policy owners in
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
the form of a dividend. if all funds are paid out, no dividends are paid
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
Following a career change, an insured is no longer required to perform many physical activities,
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
so he has implemented a program where he walks and jogs for 45 minutes each morning.The
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
insured has also eliminatedmost fattyfoods fromhis diet.Which method of dealing with risk does
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
this scenario describe?
c. c. c.
a. retention
b. reduction
c. transfer
d. avoidance - ANSWER c. c. B. reduction c.
the insured'schange inlifestyle andhabits would likely reduce thechances ofhealth problems
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
In insurance, an offer isusually made when
c. c. c. c. c. c. c.
a. an applicant submitsan application to the insurer
c. c. c. c. c. c. c.
b. theinsurer approves the application and receives the initial premium
c. c. c. c. c. c. c. c. c.
c. theagent hands thepolicy to the policyholder
c. c. c. c. c. c. c.
,d. an agent explains a policy to a potential applicant - ANSWER
c. c. c. c. c. c. c. c. c. c. A.anapplicantsubmitsan
c. c. c. c.
application to the insurer
c. c. c. c.
in insurance, the offer is usually made by the applicant in the form of an application. acceptance
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
takes placewhen aninsurer'sunderwriter approves theapplication andissues a policy
c. c. c. c. c. c. c. c. c. c. c. c. c.
thecauses of loss insured against in aninsurance policy are known as
c. c. c. c. c. c. c. c. c. c. c. c.
a. perils
b. losses
c. risks
d. hazards - ANSWER c. c. A. perils c.
perilsare the causes of loss insuredagainstin aninsurance policy what
c. c. c. c. c. c. c. c. c. c. c. c.
c. documentation grants express authority to an agent? c. c. c. c. c. c.
a. agents contract with the principal c. c. c. c.
b. agentsinsurance license c. c.
c. fiduciarycontract c.
d. state provisions - ANSWER c. c. c. A. agents contract with the principal
c. c. c. c. c.
c. theprincipal grantsauthorityto anagent through theagent's contract
c. c. c. c. c. c. c. c. c. c.
which of thefollowing best describes aninsurance companythathas been formedunder the laws of
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
this state?
c. c.
a. domestic
b. sovereign
c. alien
d. foreign - ANSWER c. c. A. domestic
c.
acompany is domesticwhen doing business within the state in which it is incorporated
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
which of thefollowingfactorsis NOTconsidered byanunderwriter when determiningthe premium
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
rates for an individual seeking insurance?
c. c. c. c. c. c.
a. medical history c.
,b. sex
c. age
d. race - ANSWER c. c. D. race c.
age, medical history, and sex providesound statistical datefor determiningtheprobabilityof loss.
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
Race, religion, sexual orientation, etc. arethe factors that cannot be used because there is not
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
sound statistical data to show that they effect the probability of loss; therefore, they are
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
considered to be discriminatory
c. c. c. c.
ininsurancetransactions, fiduciary responsibilitymeans
c. c. c. c. c.
a. handlinginsurer funds in a trust capacity c. c. c. c. c. c.
b. maintaininggood credit record c. c. c.
c. beingliable with respect topayment of claims c. c. c. c. c. c. c.
d. commingling premiums with agents personal funds - ANSWER c. c. c. c. c. c. c. A.handlinginsurerfundsin a
c. c. c. c. c.
trust capacity
c. c.
an agents fiduciary responsibilityincludes handlinginsurer funds in a trust capacity the
c. c. c. c. c. c. c. c. c. c. c. c.
c. authority granted to an agent through the agent's contract is referred to as
c. c. c. c. c. c. c. c. c. c. c. c.
a. absoluteauthority c.
b. express authority c.
c. apparentauthority c.
d. impliedauthority - ANSWER c. c. c. B. express authority c. c.
express powers arewritten into the contract between theinsurer and the agent
c. c. c. c. c. c. c. c. c. c. c. c.
insurance policies are not drawnup though negotiations, and aninsured haslittleto say about
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
its provisions. what contract characteristic does this describe?
c. c. c. c. c. c. c. c.
a. unilateral
b. conditional
c. personal
d. adhesion - ANSWER c. c. D. adhesion
c.
acontract of adhesion is prepared by only the insurer; theinsured's onlyoption is to accept or
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
, reject the policy as its written
c. c. c. c. c.
which of the followinginsurers are ownedby stockholderswho have the usualrights of
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
ownership, including the right of voting?
c. c. c. c. c. c.
a. reciprocal
b. fraternal
c. stock
d. mutual - ANSWER c. c. C.stock c.
onlystock insurance companies are owned andcontrolled by stockholders
c. c. c. c. c. c. c. c. c.
which of the followingbest describes the concept thattheinsured pays a small amount of premium
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
for a large amount of risk on the part of the insurance company?
c. c. c. c. c. c. c. c. c. c. c. c. c.
a. subrogation
b. warranty
c. aleatory
d. adhesion - ANSWER c. c. C. aleatory c.
an insurance contractisan aleatory contractin that itrequires a relatively small amountof premium
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
for a large risk
c. c. c. c.
When aninsured makestruthful statements ontheapplication for insuranceandpays the required
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
premium, it is known as which of the following?
c. c. c. c. c. c. c. c. c.
a. legal purpose c.
b. contract of adhesion c. c.
c. acceptance
d. consideration - ANSWER c. c. D. considerationc.
consideration is somethingof value that eachparty gives totheother. The consideration on the part c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
of the insured is the payment of premium and the representations made in the application
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
which of the followingwould qualify as a competent party in an insurance contract?
c. c. c. c. c. c. c. c. c. c. c. c. c.
a. the applicant is intoxicated at the time of application
c. c. c. c. c. c. c. c.
c. ANSWERED CORRECTLY
Aninsured purchased an insurancepolicy 5years ago. Last year, shereceived adividend check from
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
the insurance company that was not taxable. This year, she did not receive a check from the
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
insurer. From what type of insurer did the insured purchase the policy?
c. c. c. c. c. c. c. c. c. c. c. c.
a. mutual
b. reciprocal
c. nonprofitservice organization c. c.
d. stock - ANSWER c. c. A.mutual c.
funds not paid out after paying claims and other operatingcosts are returned to the policy owners in
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
the form of a dividend. if all funds are paid out, no dividends are paid
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
Following a career change, an insured is no longer required to perform many physical activities,
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
so he has implemented a program where he walks and jogs for 45 minutes each morning.The
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
insured has also eliminatedmost fattyfoods fromhis diet.Which method of dealing with risk does
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
this scenario describe?
c. c. c.
a. retention
b. reduction
c. transfer
d. avoidance - ANSWER c. c. B. reduction c.
the insured'schange inlifestyle andhabits would likely reduce thechances ofhealth problems
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
In insurance, an offer isusually made when
c. c. c. c. c. c. c.
a. an applicant submitsan application to the insurer
c. c. c. c. c. c. c.
b. theinsurer approves the application and receives the initial premium
c. c. c. c. c. c. c. c. c.
c. theagent hands thepolicy to the policyholder
c. c. c. c. c. c. c.
,d. an agent explains a policy to a potential applicant - ANSWER
c. c. c. c. c. c. c. c. c. c. A.anapplicantsubmitsan
c. c. c. c.
application to the insurer
c. c. c. c.
in insurance, the offer is usually made by the applicant in the form of an application. acceptance
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
takes placewhen aninsurer'sunderwriter approves theapplication andissues a policy
c. c. c. c. c. c. c. c. c. c. c. c. c.
thecauses of loss insured against in aninsurance policy are known as
c. c. c. c. c. c. c. c. c. c. c. c.
a. perils
b. losses
c. risks
d. hazards - ANSWER c. c. A. perils c.
perilsare the causes of loss insuredagainstin aninsurance policy what
c. c. c. c. c. c. c. c. c. c. c. c.
c. documentation grants express authority to an agent? c. c. c. c. c. c.
a. agents contract with the principal c. c. c. c.
b. agentsinsurance license c. c.
c. fiduciarycontract c.
d. state provisions - ANSWER c. c. c. A. agents contract with the principal
c. c. c. c. c.
c. theprincipal grantsauthorityto anagent through theagent's contract
c. c. c. c. c. c. c. c. c. c.
which of thefollowing best describes aninsurance companythathas been formedunder the laws of
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
this state?
c. c.
a. domestic
b. sovereign
c. alien
d. foreign - ANSWER c. c. A. domestic
c.
acompany is domesticwhen doing business within the state in which it is incorporated
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
which of thefollowingfactorsis NOTconsidered byanunderwriter when determiningthe premium
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
rates for an individual seeking insurance?
c. c. c. c. c. c.
a. medical history c.
,b. sex
c. age
d. race - ANSWER c. c. D. race c.
age, medical history, and sex providesound statistical datefor determiningtheprobabilityof loss.
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
Race, religion, sexual orientation, etc. arethe factors that cannot be used because there is not
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
sound statistical data to show that they effect the probability of loss; therefore, they are
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
considered to be discriminatory
c. c. c. c.
ininsurancetransactions, fiduciary responsibilitymeans
c. c. c. c. c.
a. handlinginsurer funds in a trust capacity c. c. c. c. c. c.
b. maintaininggood credit record c. c. c.
c. beingliable with respect topayment of claims c. c. c. c. c. c. c.
d. commingling premiums with agents personal funds - ANSWER c. c. c. c. c. c. c. A.handlinginsurerfundsin a
c. c. c. c. c.
trust capacity
c. c.
an agents fiduciary responsibilityincludes handlinginsurer funds in a trust capacity the
c. c. c. c. c. c. c. c. c. c. c. c.
c. authority granted to an agent through the agent's contract is referred to as
c. c. c. c. c. c. c. c. c. c. c. c.
a. absoluteauthority c.
b. express authority c.
c. apparentauthority c.
d. impliedauthority - ANSWER c. c. c. B. express authority c. c.
express powers arewritten into the contract between theinsurer and the agent
c. c. c. c. c. c. c. c. c. c. c. c.
insurance policies are not drawnup though negotiations, and aninsured haslittleto say about
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
its provisions. what contract characteristic does this describe?
c. c. c. c. c. c. c. c.
a. unilateral
b. conditional
c. personal
d. adhesion - ANSWER c. c. D. adhesion
c.
acontract of adhesion is prepared by only the insurer; theinsured's onlyoption is to accept or
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
, reject the policy as its written
c. c. c. c. c.
which of the followinginsurers are ownedby stockholderswho have the usualrights of
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
ownership, including the right of voting?
c. c. c. c. c. c.
a. reciprocal
b. fraternal
c. stock
d. mutual - ANSWER c. c. C.stock c.
onlystock insurance companies are owned andcontrolled by stockholders
c. c. c. c. c. c. c. c. c.
which of the followingbest describes the concept thattheinsured pays a small amount of premium
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
for a large amount of risk on the part of the insurance company?
c. c. c. c. c. c. c. c. c. c. c. c. c.
a. subrogation
b. warranty
c. aleatory
d. adhesion - ANSWER c. c. C. aleatory c.
an insurance contractisan aleatory contractin that itrequires a relatively small amountof premium
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
for a large risk
c. c. c. c.
When aninsured makestruthful statements ontheapplication for insuranceandpays the required
c. c. c. c. c. c. c. c. c. c. c. c. c. c.
premium, it is known as which of the following?
c. c. c. c. c. c. c. c. c.
a. legal purpose c.
b. contract of adhesion c. c.
c. acceptance
d. consideration - ANSWER c. c. D. considerationc.
consideration is somethingof value that eachparty gives totheother. The consideration on the part c. c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
of the insured is the payment of premium and the representations made in the application
c. c. c. c. c. c. c. c. c. c. c. c. c. c. c.
which of the followingwould qualify as a competent party in an insurance contract?
c. c. c. c. c. c. c. c. c. c. c. c. c.
a. the applicant is intoxicated at the time of application
c. c. c. c. c. c. c. c.
