Primerica Life Insurance Exam
Multiple Choices Questions
Latest 2025/2026 with Correct
Answers
In a case where the primary beneficiary predeceases the insured, in the
event of the insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary
- ANS - The contingent beneficiary
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
A. mutual
- ANS - 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
B. reduction
- ANS - 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
,A. an applicant submits an application to the insurer
- ANS - 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 - 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
- ANS - agents contract with the principal; the principal grants authority
to an agent through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement
plan?
- ANS - It needs IRS approval
, Which of the following may NOT be included in an insurance company's
advertisement?
- ANS - That its policies are covered by a state Guaranty Association
Which of the following is the most common way to transfer risk?
- ANS - Purchase Insurance
Which of the following would provide an underwriter with information
concerning an applicant's health history?
- ANS - The medical information bureau
A temporary producer license could be issued without examination to all
of the following EXCEPT.
- ANS - The spouse of a retiring insurance producer
All of the following are duties and responsibilities of producers at the
time of application EXCEPT
A) Change any incorrect statement on the application by personally
initialing next to the corrected statement.
B) Explain the nature and type of any receipt the producer is giving to the
applicant
C) Probe beyond the stated questions if the producer feels the applicant
is misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the
application
Multiple Choices Questions
Latest 2025/2026 with Correct
Answers
In a case where the primary beneficiary predeceases the insured, in the
event of the insured's death, the death benefit proceeds will be paid to
A) The insured's spouse
B) The policyowner
C) The insurance company
D) The contingent beneficiary
- ANS - The contingent beneficiary
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
A. mutual
- ANS - 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
B. reduction
- ANS - 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
,A. an applicant submits an application to the insurer
- ANS - 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 - 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
- ANS - agents contract with the principal; the principal grants authority
to an agent through the agent's contract
Which of the following is NOT true regarding a nonqualified retirement
plan?
- ANS - It needs IRS approval
, Which of the following may NOT be included in an insurance company's
advertisement?
- ANS - That its policies are covered by a state Guaranty Association
Which of the following is the most common way to transfer risk?
- ANS - Purchase Insurance
Which of the following would provide an underwriter with information
concerning an applicant's health history?
- ANS - The medical information bureau
A temporary producer license could be issued without examination to all
of the following EXCEPT.
- ANS - The spouse of a retiring insurance producer
All of the following are duties and responsibilities of producers at the
time of application EXCEPT
A) Change any incorrect statement on the application by personally
initialing next to the corrected statement.
B) Explain the nature and type of any receipt the producer is giving to the
applicant
C) Probe beyond the stated questions if the producer feels the applicant
is misrepresenting or concealing information.
D) Check to make sure that there are no unanswered questions on the
application
