PRIMERICA LIFE INSURANCE EXAM
2025 QUESTIONS AND ANSWERS
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check
from the insurance company that was not taxable. This year, she did not receive a check from
the insurer. From what type of insurer did the insured purchase the policy?
a. mutual
b. reciprocal
c. nonprofit service organization
d. stock - ANS A. mutual
funds not paid out after paying claims and other operating costs are returned to the policy
owners in the form of a dividend. if all funds are paid out, no dividends are paid
Following a career change, an insured is no longer required to perform many physical activities,
so he has implemented a program where he walks and jogs for 45 minutes each morning. The
insured has also eliminated most fatty foods from his diet. Which method of dealing with risk
does this scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance - ANS B. reduction
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, the insured's change in lifestyle and habits would likely reduce the chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial premium
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant - ANS A. an applicant submits an
application to the insurer
in insurance, the offer is usually made by the applicant in the form of an application.
acceptance takes place when an insurer's underwriter approves the application and issues a
policy
the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards - ANS A. perils
perils are the causes of loss insured against in an insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
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d. state provisions - ANS A. agents contract with the principal
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, the principal grants authority to an agent through the agent's contract
which of the following best describes an insurance company that has been formed under the
laws of this state?
a. domestic
b. sovereign
c. alien
d. foreign - ANS A. domestic
a company is domestic when doing business within the state in which it is incorporated
which of the following factors is NOT considered by an underwriter when determining the
premium rates for an individual seeking insurance?
a. medical history
b. sex
c. age
d. race - ANS D. race
age, medical history, and sex provide sound statistical date for determining the probability of
loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is
not sound statistical data to show that they effect the probability of loss; therefore, they are
considered to be discriminatory
in insurance transactions, fiduciary responsibility means
a. handling insurer funds in a trust capacity
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b. maintaining good credit record
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@COPYRIGHT BRAINBARTER 2025/2026
, c. being liable with respect to payment of claims
d. commingling premiums with agents personal funds - ANS A. handling insurer funds in a
trust capacity
an agents fiduciary responsibility includes handling insurer funds in a trust capacity
the authority granted to an agent through the agent's contract is referred to as
a. absolute authority
b. express authority
c. apparent authority
d. implied authority - ANS B. express authority
express powers are written into the contract between the insurer and the agent
insurance policies are not drawn up though negotiations, and an insured has little to say about
its provisions. what contract characteristic does this describe?
a. unilateral
b. conditional
c. personal
d. adhesion - ANS D. adhesion
a contract of adhesion is prepared by only the insurer; the insured's only option is to accept or
reject the policy as its written
which of the following insurers are owned by stockholders who have the usual rights of
ownership, including the right of voting?
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a. reciprocal
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2025 QUESTIONS AND ANSWERS
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check
from the insurance company that was not taxable. This year, she did not receive a check from
the insurer. From what type of insurer did the insured purchase the policy?
a. mutual
b. reciprocal
c. nonprofit service organization
d. stock - ANS A. mutual
funds not paid out after paying claims and other operating costs are returned to the policy
owners in the form of a dividend. if all funds are paid out, no dividends are paid
Following a career change, an insured is no longer required to perform many physical activities,
so he has implemented a program where he walks and jogs for 45 minutes each morning. The
insured has also eliminated most fatty foods from his diet. Which method of dealing with risk
does this scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance - ANS B. reduction
1
Page
@COPYRIGHT BRAINBARTER 2025/2026
, the insured's change in lifestyle and habits would likely reduce the chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial premium
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant - ANS A. an applicant submits an
application to the insurer
in insurance, the offer is usually made by the applicant in the form of an application.
acceptance takes place when an insurer's underwriter approves the application and issues a
policy
the causes of loss insured against in an insurance policy are known as
a. perils
b. losses
c. risks
d. hazards - ANS A. perils
perils are the causes of loss insured against in an insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
2
d. state provisions - ANS A. agents contract with the principal
Page
@COPYRIGHT BRAINBARTER 2025/2026
, the principal grants authority to an agent through the agent's contract
which of the following best describes an insurance company that has been formed under the
laws of this state?
a. domestic
b. sovereign
c. alien
d. foreign - ANS A. domestic
a company is domestic when doing business within the state in which it is incorporated
which of the following factors is NOT considered by an underwriter when determining the
premium rates for an individual seeking insurance?
a. medical history
b. sex
c. age
d. race - ANS D. race
age, medical history, and sex provide sound statistical date for determining the probability of
loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is
not sound statistical data to show that they effect the probability of loss; therefore, they are
considered to be discriminatory
in insurance transactions, fiduciary responsibility means
a. handling insurer funds in a trust capacity
3
b. maintaining good credit record
Page
@COPYRIGHT BRAINBARTER 2025/2026
, c. being liable with respect to payment of claims
d. commingling premiums with agents personal funds - ANS A. handling insurer funds in a
trust capacity
an agents fiduciary responsibility includes handling insurer funds in a trust capacity
the authority granted to an agent through the agent's contract is referred to as
a. absolute authority
b. express authority
c. apparent authority
d. implied authority - ANS B. express authority
express powers are written into the contract between the insurer and the agent
insurance policies are not drawn up though negotiations, and an insured has little to say about
its provisions. what contract characteristic does this describe?
a. unilateral
b. conditional
c. personal
d. adhesion - ANS D. adhesion
a contract of adhesion is prepared by only the insurer; the insured's only option is to accept or
reject the policy as its written
which of the following insurers are owned by stockholders who have the usual rights of
ownership, including the right of voting?
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a. reciprocal
@COPYRIGHT BRAINBARTER 2025/2026
