Life Insurance Primerica Exam Questions
100% Correct Answers Current Update
401 .k .plan .- .CORRECT .ANSWER-A .qualified .retirement .plan .in .which .the .
employee .can .set .aside .a .portion .of .their .income .
with .pre-tax .dollars.
Absolute .Assignment .v. .Collateral .
Assignment .- .CORRECT .ANSWER-Absolute: .A .permanent .and .irrevocable
.transfer .
of .rights .and/or .benefits .by .the .policyowner. .
Collateral: .A .temporary .and/or .revocable .transfer .
of .benefits .by .the .policyowner.
Accelerated .Death .Benefit .- .CORRECT .ANSWER-Policy .provision .that .allows
.full .or .partial .
payment .of .the .policy's .death .benefit .before .the .
insured's .death .if .he/she .is .terminally .ill.
Accidental .Death .Benefit .- .CORRECT .ANSWER-An .extra .cost .rider .that .requires
.the .insurance .
company .to .pay .an .additional .benefit .in .the .event .
that .the .insured .dies .within .90 .days .of .an .
accident .as .a .direct .result .of .the .accident.
Accumulate .at .Interest .- .CORRECT .ANSWER-The .Dividend .Option .where .the
.policyowner .
leaves .the .dividends .with .the .insurer .to .invest .
and .earn .interest.
Adhesion .- .CORRECT .ANSWER-Since .the .insurer .created .all .the .documents .of .
the .contract, .any .ambiguities .in .the .contract .will .
be .settled .in .favor .of .the .insured. .Since .the .
insurer .wrote .the .contract .they .are .stuck .with .it.
Adverse .Selection .- .CORRECT .ANSWER-The .tendency .for .less .favorable .risks
.to .seek .or .
continue .insurance .to .a .greater .extent .than .more .
favorable .risks.
, Agency .Agreement .or .Agency .Contract .- .CORRECT .ANSWER-A .legal .document
.containing .the .terms .of .the .
agreement .between .the .agent .and .the .insurance .
company. .It .clearly .defines .what .an .agent .can .
and .cannot .do, .and .how .he/she .will .be .
compensated.
Agent .Authorities .- .CORRECT .ANSWER-Expressed: .Power .or .authority
.specifically .
granted .in .writing .to .an .agent .by .the .insurance .
company .in .their .Agency .Agreement. .Apparent: .
Power .or .authority .that .the .public .reasonably .
assumes .an .agent .has .based .upon .his/her .
actions. .Implied: .Power .or .authority .that .is .not .
expressly .granted .by .the .company .but .that .an .
agent .can .assume .or .that .are .implied .he/she .has .
in .order .to .transact .insurance .business.
Agent/Producer .- .CORRECT .ANSWER-Anyone .who .sells .or .aids .in .the .selling
.of .
insurance. .Legally .represents .the .company.
Cash .Settlement .Option .- .CORRECT .ANSWER-Upon .maturity .of .an .insurance
.policy .the .
beneficiary .receives .a .lump-sum .payment .of .the .
entire .policy .proceeds .due.
Agent's .Report .- .CORRECT .ANSWER-A .written .report .from .the .agent .submitted
.to .the .
insurer .along .with .the .application .disclosing .what .
the .agent .knows, .observed, .or .learned .about .the .
proposed .insured's .risks.
Aleatory .- .CORRECT .ANSWER-Unequal .exchange .of .value. .One .party .may .
obtain .a .far .greater .value .than .the .other .under .
the .contract.
Annual .Renewable .Term .- .CORRECT .ANSWER-A .Term .Life .Insurance .contract
.which .gives .the .
policyowner .the .option .to .renew .the .policy .each .
year .without .showing .proof .of .insurability. .
Premiums .increase .at .each .renewal.
Annuitant .- .CORRECT .ANSWER-The .person .that .buys .an .annuity; .may .or .may
.not .
be .an .annuity's .policyowner.
Annuity .- .CORRECT .ANSWER-A .contract/policy .that .guarantees .to .pay .income .
for .a .specified .period .of .time .or .for .the .life .of .the .
100% Correct Answers Current Update
401 .k .plan .- .CORRECT .ANSWER-A .qualified .retirement .plan .in .which .the .
employee .can .set .aside .a .portion .of .their .income .
with .pre-tax .dollars.
Absolute .Assignment .v. .Collateral .
Assignment .- .CORRECT .ANSWER-Absolute: .A .permanent .and .irrevocable
.transfer .
of .rights .and/or .benefits .by .the .policyowner. .
Collateral: .A .temporary .and/or .revocable .transfer .
of .benefits .by .the .policyowner.
Accelerated .Death .Benefit .- .CORRECT .ANSWER-Policy .provision .that .allows
.full .or .partial .
payment .of .the .policy's .death .benefit .before .the .
insured's .death .if .he/she .is .terminally .ill.
Accidental .Death .Benefit .- .CORRECT .ANSWER-An .extra .cost .rider .that .requires
.the .insurance .
company .to .pay .an .additional .benefit .in .the .event .
that .the .insured .dies .within .90 .days .of .an .
accident .as .a .direct .result .of .the .accident.
Accumulate .at .Interest .- .CORRECT .ANSWER-The .Dividend .Option .where .the
.policyowner .
leaves .the .dividends .with .the .insurer .to .invest .
and .earn .interest.
Adhesion .- .CORRECT .ANSWER-Since .the .insurer .created .all .the .documents .of .
the .contract, .any .ambiguities .in .the .contract .will .
be .settled .in .favor .of .the .insured. .Since .the .
insurer .wrote .the .contract .they .are .stuck .with .it.
Adverse .Selection .- .CORRECT .ANSWER-The .tendency .for .less .favorable .risks
.to .seek .or .
continue .insurance .to .a .greater .extent .than .more .
favorable .risks.
, Agency .Agreement .or .Agency .Contract .- .CORRECT .ANSWER-A .legal .document
.containing .the .terms .of .the .
agreement .between .the .agent .and .the .insurance .
company. .It .clearly .defines .what .an .agent .can .
and .cannot .do, .and .how .he/she .will .be .
compensated.
Agent .Authorities .- .CORRECT .ANSWER-Expressed: .Power .or .authority
.specifically .
granted .in .writing .to .an .agent .by .the .insurance .
company .in .their .Agency .Agreement. .Apparent: .
Power .or .authority .that .the .public .reasonably .
assumes .an .agent .has .based .upon .his/her .
actions. .Implied: .Power .or .authority .that .is .not .
expressly .granted .by .the .company .but .that .an .
agent .can .assume .or .that .are .implied .he/she .has .
in .order .to .transact .insurance .business.
Agent/Producer .- .CORRECT .ANSWER-Anyone .who .sells .or .aids .in .the .selling
.of .
insurance. .Legally .represents .the .company.
Cash .Settlement .Option .- .CORRECT .ANSWER-Upon .maturity .of .an .insurance
.policy .the .
beneficiary .receives .a .lump-sum .payment .of .the .
entire .policy .proceeds .due.
Agent's .Report .- .CORRECT .ANSWER-A .written .report .from .the .agent .submitted
.to .the .
insurer .along .with .the .application .disclosing .what .
the .agent .knows, .observed, .or .learned .about .the .
proposed .insured's .risks.
Aleatory .- .CORRECT .ANSWER-Unequal .exchange .of .value. .One .party .may .
obtain .a .far .greater .value .than .the .other .under .
the .contract.
Annual .Renewable .Term .- .CORRECT .ANSWER-A .Term .Life .Insurance .contract
.which .gives .the .
policyowner .the .option .to .renew .the .policy .each .
year .without .showing .proof .of .insurability. .
Premiums .increase .at .each .renewal.
Annuitant .- .CORRECT .ANSWER-The .person .that .buys .an .annuity; .may .or .may
.not .
be .an .annuity's .policyowner.
Annuity .- .CORRECT .ANSWER-A .contract/policy .that .guarantees .to .pay .income .
for .a .specified .period .of .time .or .for .the .life .of .the .
