PRIMERICA LIFE INSURANCE EVALUATION EXAMS
2025/2026 QUESTIONS WITH ANSWERS RATED A+
✔✔Basic Illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
✔✔Beneficiary - ✔✔The person who receives the proceeds from the policy when the
insured dies.
✔✔Birthday Rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
✔✔Broker - ✔✔An individual who represents an insured in the process of purchasing
and negotiating a contract of insurance.
✔✔Buy/Sell Agreement - ✔✔A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔Cash Value - ✔✔The amount to which a policyowner is entitled if the policy is
surrendered before maturity.
✔✔Certificate - ✔✔A statement or booklet that confirms that a policy has been written
and that describes the coverage in general.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔A request for payment of the benefits provided by an insurance contract.
✔✔Coercion - ✔✔An unfair trade practice in which an agent uses physical or mental
force with the intent of inducing an applicant to purchase insurance.
✔✔Coinsurance Clause - ✔✔A provision that states that the insurer and the insured will
share the losses covered by the policy in a proportion agreed upon in advance.
, ✔✔Commingling - ✔✔A practice in which a person in a fiduciary capacity illegally mixes
his/her personal funds with funds he/she is holding in trust.
✔✔Commission - ✔✔The payment made by insurers to agents or brokers for the sale
and service of policies.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department (in some states, known as Director or Superintendent).
✔✔Concealment - ✔✔The withholding of known facts that, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of an agreement in which both parties must
perform certain duties and follow rules of conduct to make the contract enforceable.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The consideration on the part of the insured is
the representations made in the application and the payment of premium; the
consideration on the part of the insurer is the promise to pay in the event of loss.
✔✔Consumer Report - ✔✔A written and /or oral statement regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties enforceable by law.
✔✔Contributory - ✔✔A group insurance plan that requires the employees to pay part of
the premium.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer or
employees.
✔✔Convertible - ✔✔A policy that may be exchanged for another type of policy by
contractual provision, at the option of the policyowner, and without evidence of
insurability (i.e. term life changed to a form of permanent life).
✔✔Countersignature - ✔✔The act of signing an insurance policy by a licensed resident
agent.
✔✔Coverage - ✔✔The inclusion of causes of loss (perils) which are covered within a
scope of a policy.
2025/2026 QUESTIONS WITH ANSWERS RATED A+
✔✔Basic Illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
✔✔Beneficiary - ✔✔The person who receives the proceeds from the policy when the
insured dies.
✔✔Birthday Rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
✔✔Broker - ✔✔An individual who represents an insured in the process of purchasing
and negotiating a contract of insurance.
✔✔Buy/Sell Agreement - ✔✔A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔Cash Value - ✔✔The amount to which a policyowner is entitled if the policy is
surrendered before maturity.
✔✔Certificate - ✔✔A statement or booklet that confirms that a policy has been written
and that describes the coverage in general.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔A request for payment of the benefits provided by an insurance contract.
✔✔Coercion - ✔✔An unfair trade practice in which an agent uses physical or mental
force with the intent of inducing an applicant to purchase insurance.
✔✔Coinsurance Clause - ✔✔A provision that states that the insurer and the insured will
share the losses covered by the policy in a proportion agreed upon in advance.
, ✔✔Commingling - ✔✔A practice in which a person in a fiduciary capacity illegally mixes
his/her personal funds with funds he/she is holding in trust.
✔✔Commission - ✔✔The payment made by insurers to agents or brokers for the sale
and service of policies.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department (in some states, known as Director or Superintendent).
✔✔Concealment - ✔✔The withholding of known facts that, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of an agreement in which both parties must
perform certain duties and follow rules of conduct to make the contract enforceable.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The consideration on the part of the insured is
the representations made in the application and the payment of premium; the
consideration on the part of the insurer is the promise to pay in the event of loss.
✔✔Consumer Report - ✔✔A written and /or oral statement regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties enforceable by law.
✔✔Contributory - ✔✔A group insurance plan that requires the employees to pay part of
the premium.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer or
employees.
✔✔Convertible - ✔✔A policy that may be exchanged for another type of policy by
contractual provision, at the option of the policyowner, and without evidence of
insurability (i.e. term life changed to a form of permanent life).
✔✔Countersignature - ✔✔The act of signing an insurance policy by a licensed resident
agent.
✔✔Coverage - ✔✔The inclusion of causes of loss (perils) which are covered within a
scope of a policy.
