PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
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 - Correct Answers ✅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
,PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
d. avoidance - Correct Answers ✅B. reduction
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 -
Correct Answers ✅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
,PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
b. losses
c. risks
d. hazards - Correct Answers ✅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
d. state provisions - Correct Answers ✅A. agents contract
with the principal
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
, PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
c. alien
d. foreign - Correct Answers ✅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 - Correct Answers ✅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
and Answers (Most Recent Version, Complete
Study Material)
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 - Correct Answers ✅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
,PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
d. avoidance - Correct Answers ✅B. reduction
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 -
Correct Answers ✅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
,PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
b. losses
c. risks
d. hazards - Correct Answers ✅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
d. state provisions - Correct Answers ✅A. agents contract
with the principal
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
, PRIMERICA LIFE INSURANCE EXAM Questions
and Answers (Most Recent Version, Complete
Study Material)
c. alien
d. foreign - Correct Answers ✅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 - Correct Answers ✅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
