©EVERLY 2025 ALL RIGHTS RESERVED
Primerica-Life Insurance Exam Questions
And Answers Latest Updated 2025 |100%
Verified.
Stranger-oriented life insurance policies are in direct opposition to the principle of
a. law of large numbers
b. good faith
c. indemnity
d. insurable interest - Answer✔d. insurable interest-STOLI purchaser doesn't know the insured,
or have any interest in the insured's longevity, so it violates the principle of insurable interest
Which is generally true regarding insureds who have earned preferred status?
a. they keep a higher percentage of any interest earned on their policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums - Answer✔b. their premiums are
lower- the insured is in excellent physical condition and employs healthy lifestyles and habits
All of the following statements concerning the use of life insurance as an Executive Bonus are
correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
1
, ©EVERLY 2025 ALL RIGHTS RESERVED
d. any type of insurance policy may be used. - Answer✔c. the policy is owned by the company.
An insured receives a monthly summary for his life insurance policy. He notices that the cash
value of the policy is significantly lower this month than it was last month. What type of policy
does the insured have?
a. variable
b. term
c. securities
d. stock - Answer✔a. variable- life policies vary in value, as the name suggests, because the
value is based on the stocks that support the policy. If a policyholder wants a more stable,
reliable value, he/she should invest in a fixed policy.
When an employer offers to give an employee a wage increase in the amount of the premium
on a new life insurance policy, this is called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association - Answer✔b. executive bonus
In terms of Social Security, what is the interval spanning between the day when the youngest
child of a family turns 16 and before the surviving spouse may receive retirement benefits? -
Answer✔Blackout period- begins when the youngest child reaches the age of 16, and ends
when the surviving spouse qualifies for retirement benefits, as early as age 60. No benefits are
paid during this time.
Life insurance may be used to pay state inheritance taxes and federal estate taxes so that it is
not necessary to sell off assets from the estate to pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
2
, ©EVERLY 2025 ALL RIGHTS RESERVED
d. survivorship insurnce - Answer✔a. estate conservation- life insurance may be used to pay
state inheritance taxes and federal estate taxes so that it is not necessary to sell off assets from
the estate to pay these costs. This is called estate conservation.
Which of the following applicants could the insurer charge a higher rate and not be charge with
unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that does not - Answer✔d. an
applicant that smokes cigarettes as opposed to one that does not
Partner A in a business buys a life insurance policy on Partner B to protect herself against a
financial loss if he should die. Two years after the partnership is dissolved Partner B dies. Who
will receive the death benefit? - Answer✔Partner A
Which of the following is NOT a type of information that needs to be gathered in order to
determine the value of someone's life when using the needs approach?
a. mortgages
b. expenses
c. estimated longevity
d. outstanding debt - Answer✔c. estimated longevity
An employee will be taxed on the cost of group life insurance paid by the employer if the
amount of coverage exceeds
a. $10,000
b. $15,000
c. $25,000
d. $50,000 - Answer✔d. $50,000
Which of the following would NOT fall into the category of costs associated with death?
3
Primerica-Life Insurance Exam Questions
And Answers Latest Updated 2025 |100%
Verified.
Stranger-oriented life insurance policies are in direct opposition to the principle of
a. law of large numbers
b. good faith
c. indemnity
d. insurable interest - Answer✔d. insurable interest-STOLI purchaser doesn't know the insured,
or have any interest in the insured's longevity, so it violates the principle of insurable interest
Which is generally true regarding insureds who have earned preferred status?
a. they keep a higher percentage of any interest earned on their policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums - Answer✔b. their premiums are
lower- the insured is in excellent physical condition and employs healthy lifestyles and habits
All of the following statements concerning the use of life insurance as an Executive Bonus are
correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
1
, ©EVERLY 2025 ALL RIGHTS RESERVED
d. any type of insurance policy may be used. - Answer✔c. the policy is owned by the company.
An insured receives a monthly summary for his life insurance policy. He notices that the cash
value of the policy is significantly lower this month than it was last month. What type of policy
does the insured have?
a. variable
b. term
c. securities
d. stock - Answer✔a. variable- life policies vary in value, as the name suggests, because the
value is based on the stocks that support the policy. If a policyholder wants a more stable,
reliable value, he/she should invest in a fixed policy.
When an employer offers to give an employee a wage increase in the amount of the premium
on a new life insurance policy, this is called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association - Answer✔b. executive bonus
In terms of Social Security, what is the interval spanning between the day when the youngest
child of a family turns 16 and before the surviving spouse may receive retirement benefits? -
Answer✔Blackout period- begins when the youngest child reaches the age of 16, and ends
when the surviving spouse qualifies for retirement benefits, as early as age 60. No benefits are
paid during this time.
Life insurance may be used to pay state inheritance taxes and federal estate taxes so that it is
not necessary to sell off assets from the estate to pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
2
, ©EVERLY 2025 ALL RIGHTS RESERVED
d. survivorship insurnce - Answer✔a. estate conservation- life insurance may be used to pay
state inheritance taxes and federal estate taxes so that it is not necessary to sell off assets from
the estate to pay these costs. This is called estate conservation.
Which of the following applicants could the insurer charge a higher rate and not be charge with
unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that does not - Answer✔d. an
applicant that smokes cigarettes as opposed to one that does not
Partner A in a business buys a life insurance policy on Partner B to protect herself against a
financial loss if he should die. Two years after the partnership is dissolved Partner B dies. Who
will receive the death benefit? - Answer✔Partner A
Which of the following is NOT a type of information that needs to be gathered in order to
determine the value of someone's life when using the needs approach?
a. mortgages
b. expenses
c. estimated longevity
d. outstanding debt - Answer✔c. estimated longevity
An employee will be taxed on the cost of group life insurance paid by the employer if the
amount of coverage exceeds
a. $10,000
b. $15,000
c. $25,000
d. $50,000 - Answer✔d. $50,000
Which of the following would NOT fall into the category of costs associated with death?
3
