Primerica Life Insurance Exam 2025 i,- i,- i,- i,- i,-
Review | 100 Questions with Verified i,- i,- i,- i,- i,- i,-
Answers | 100% Correct| Graded A. i,- i,- i,- i,- i,-
An insured owns a $50,000 whole life policy. At age 47, the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
insured decides to cancel his policy and exercise the extended
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term option for the policy's cash value, which is currently $20,000.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
What would be the face amount of the new term policy?
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a) $20,000
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b) $25,000
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c) $50,000
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d) The face amount will be determined by the insurer.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-i,- i,- $50,000
Which of the following is NOT a term for the period of time
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during which the annuitant or the beneficiary receives income?
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a) Annuitization period
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b) Pay-out period
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c) Liquidation period
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d) Depreciation period
i,- i,- i,-i,- i,- Depreciation Period i,-
What is the purpose of a conditional receipt?
i,- i,- i,- i,- i,- i,- i,-
,a) It is intended to provide coverage on a date earlier than the
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date of the issuance of the policy.
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b) It guarantees the applicant that a policy will be issued in the
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amount applied for in the application. i,- i,- i,- i,- i,-
c) It serves as proof that the agent has determined the applicant
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to be fully insurable for coverage by the insurance company.
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d) It is given by the agent only to applicants who fully prepay all
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
scheduled premiums in advance of policy issue. It is intended
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to provide coverage on a date earlier than the date of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
issuance of the policy i,- i,- i,-
In a life settlement contract, whom does the life settlement
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broker represent? i,-
a) The owner
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b) The insurer
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c) The beneficiary
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d) The life settlement intermediary
i,- i,- i,- i,- i,-i,- i,- The owner i,-
Which of the following statements is TRUE concerning irrevocable
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beneficiaries?
a) They can be changed only with the written consent of that
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beneficiary.
b) They may be changed at any time.
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,c) They can never be changed.
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d) They may be changed only on the anniversary date of the
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policy. They can be changed only with the written consent of
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that beneficiaryi,-
An employee quits her job where she has a balance of $10,000 in
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
her qualified plan. The balance was paid out directly to the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
employee in order for her to move the funds to a new account. If
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she decides to rollover her plan to a Traditional IRA, how much
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will she receive from the plan administrator and how long does
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she have to complete the tax-free rollover?
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a) $8,000, 30 days
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b) $10,000, 60 days
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c) $10,000, 30 days
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d) $8,000, 60 days
i,- i,- i,- i,-i,- i,- $8,000, 60 days i,- i,-
The policyowner pays for her life insurance annually. Until now,
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she has collected a nontaxable dividend check each year. She has
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
decided that she would rather use the dividends to help pay for
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
her next premium. What option would allow her to do this?
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Paid-up addition
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b) Accumulation at interest
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c) Cash option
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, d) Reduction of premium
i,- i,- i,- i,-i,- i,- Reduction of premium i,- i,-
Variable Life insurance is based on what kind of premium?
i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Decreasing
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b) Graded
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c) Level fixed
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d) Increasing
i,- i,-i,- i,- Level fixed i,-
An insurer has made all of the decisions regarding the provisions
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
included in the insured's policy. The insured finds an
i,- i,- i,- i,- i,- i,- i,- i,- i,-
objectionable provision and wants to negotiate it with the insurer i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
but is not allowed to do so. Her only options are to reject the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
policy or accept it as is. Which contract feature does this describe?
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Unilateral
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b) Conditional
i,-
c) Personal
i,-
d) Adhesion
i,- i,-i,- i,- Adhesion
An insurance policy that only requires a payment of premium at
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
its inception, provides insurance protection for the life of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
insured, and matures at the insured's age 100 is called
i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Modified Endowment Contract (MEC).
i,- i,- i,- i,-
Review | 100 Questions with Verified i,- i,- i,- i,- i,- i,-
Answers | 100% Correct| Graded A. i,- i,- i,- i,- i,-
An insured owns a $50,000 whole life policy. At age 47, the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
insured decides to cancel his policy and exercise the extended
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
term option for the policy's cash value, which is currently $20,000.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
What would be the face amount of the new term policy?
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) $20,000
i,-
b) $25,000
i,-
c) $50,000
i,-
d) The face amount will be determined by the insurer.
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-i,- i,- $50,000
Which of the following is NOT a term for the period of time
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
during which the annuitant or the beneficiary receives income?
i,- i,- i,- i,- i,- i,- i,- i,-
a) Annuitization period
i,- i,-
b) Pay-out period
i,- i,-
c) Liquidation period
i,- i,-
d) Depreciation period
i,- i,- i,-i,- i,- Depreciation Period i,-
What is the purpose of a conditional receipt?
i,- i,- i,- i,- i,- i,- i,-
,a) It is intended to provide coverage on a date earlier than the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
date of the issuance of the policy.
i,- i,- i,- i,- i,- i,-
b) It guarantees the applicant that a policy will be issued in the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
amount applied for in the application. i,- i,- i,- i,- i,-
c) It serves as proof that the agent has determined the applicant
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
to be fully insurable for coverage by the insurance company.
i,- i,- i,- i,- i,- i,- i,- i,- i,-
d) It is given by the agent only to applicants who fully prepay all
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
scheduled premiums in advance of policy issue. It is intended
i,- i,- i,- i,- i,- i,- i,-i,- i,- i,- i,- i,-
to provide coverage on a date earlier than the date of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
issuance of the policy i,- i,- i,-
In a life settlement contract, whom does the life settlement
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
broker represent? i,-
a) The owner
i,- i,-
b) The insurer
i,- i,-
c) The beneficiary
i,- i,-
d) The life settlement intermediary
i,- i,- i,- i,- i,-i,- i,- The owner i,-
Which of the following statements is TRUE concerning irrevocable
i,- i,- i,- i,- i,- i,- i,- i,- i,-
beneficiaries?
a) They can be changed only with the written consent of that
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
beneficiary.
b) They may be changed at any time.
i,- i,- i,- i,- i,- i,- i,-
,c) They can never be changed.
i,- i,- i,- i,- i,-
d) They may be changed only on the anniversary date of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
policy. They can be changed only with the written consent of
i,-i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
that beneficiaryi,-
An employee quits her job where she has a balance of $10,000 in
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
her qualified plan. The balance was paid out directly to the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
employee in order for her to move the funds to a new account. If
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
she decides to rollover her plan to a Traditional IRA, how much
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
will she receive from the plan administrator and how long does
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
she have to complete the tax-free rollover?
i,- i,- i,- i,- i,- i,-
a) $8,000, 30 days
i,- i,- i,-
b) $10,000, 60 days
i,- i,- i,-
c) $10,000, 30 days
i,- i,- i,-
d) $8,000, 60 days
i,- i,- i,- i,-i,- i,- $8,000, 60 days i,- i,-
The policyowner pays for her life insurance annually. Until now,
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
she has collected a nontaxable dividend check each year. She has
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
decided that she would rather use the dividends to help pay for
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
her next premium. What option would allow her to do this?
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Paid-up addition
i,- i,-
b) Accumulation at interest
i,- i,- i,-
c) Cash option
i,- i,-
, d) Reduction of premium
i,- i,- i,- i,-i,- i,- Reduction of premium i,- i,-
Variable Life insurance is based on what kind of premium?
i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Decreasing
i,-
b) Graded
i,-
c) Level fixed
i,- i,-
d) Increasing
i,- i,-i,- i,- Level fixed i,-
An insurer has made all of the decisions regarding the provisions
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
included in the insured's policy. The insured finds an
i,- i,- i,- i,- i,- i,- i,- i,- i,-
objectionable provision and wants to negotiate it with the insurer i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
but is not allowed to do so. Her only options are to reject the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
policy or accept it as is. Which contract feature does this describe?
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Unilateral
i,-
b) Conditional
i,-
c) Personal
i,-
d) Adhesion
i,- i,-i,- i,- Adhesion
An insurance policy that only requires a payment of premium at
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
its inception, provides insurance protection for the life of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
insured, and matures at the insured's age 100 is called
i,- i,- i,- i,- i,- i,- i,- i,- i,-
a) Modified Endowment Contract (MEC).
i,- i,- i,- i,-
