PRIMERICA LIFE INSURANCE FINAL
STUDY GUIDE 2026 COMPLETE
QUESTIONS AND ANSWERS.
⫸ age in underwriting. Answer -Age provides sound statistical data
for determining the probability of loss.
⫸ medical history in underwriting. Answer -Medical history provides
sound statistical data for determining the probability of loss.
⫸ sex in underwriting. Answer -Sex provides sound statistical data
for determining the probability of loss.
⫸ implied authority. Answer -Authority that is not explicitly stated
but is assumed to be granted to an agent.
⫸ apparent authority. Answer -Authority that others believe an agent
has based on the agent's actions.
⫸ losses. Answer -Losses refer to the financial impact of perils
covered by an insurance policy.
⫸ risks. Answer -Risks refer to the uncertainty regarding financial
loss.
,⫸ hazards. Answer -Hazards are conditions that increase the
likelihood of a peril occurring.
⫸ transfer. Answer -A method of dealing with risk where the risk is
shifted to another party, typically through insurance.
⫸ avoidance. Answer -A method of dealing with risk where the risk
is eliminated entirely.
⫸ retention. Answer -A method of dealing with risk where the
individual or organization assumes the risk.
⫸ adhesion. Answer -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.
⫸ stock insurance companies. Answer -only stock insurance
companies are owned and controlled by stockholders.
⫸ aleatory. Answer -an insurance contract is an aleatory contract in
that it requires a relatively small amount of premium for a large risk.
⫸ consideration. Answer -consideration is something of value that
each party gives to the other. The consideration on the part of the
insured is the payment of premium and the representations made in
the application.
,⫸ competent party. Answer -when an insurer and insured enter into a
contract, both parties must be legal of age and mentally competent.
⫸ good health. Answer -the binding force in any contract is
consideration. Consideration on the part of the insured is the payment
of premiums and the health representations made in the application.
⫸ application. Answer -the application contains most of the
information used for underwriting purposes; this is why its
completeness and accuracy are so critical.
⫸ life insurance. Answer -the best reason to purchase life insurance
rather than annuities is to create an estate.
⫸ Immediate estate. Answer -An estate created by the death of the
insured.
⫸ Survivorship protection. Answer -A personal use of life insurance
that provides funds necessary for survivors to maintain their lifestyle
in the event of the insured's death.
⫸ Producer's responsibilities upon policy delivery. Answer -A
producer must explain policy provisions, exclusions, and riders,
collect any due premium, and have the insured sign the statement of
continued good health.
⫸ Insurable interest. Answer -A requirement that must exist between
individuals at the time a life insurance policy is issued, often
presumed in relationships like spouses, parents, and children.
, ⫸ Medical exam for life insurance. Answer -An exam that may be
completed by a paramedic or examining physician at the insurer's
expense.
⫸ Expenses in insurance. Answer -The factor added to the net
premium to cover the costs of the insurer in obtaining and maintaining
the business, also known as loading.
⫸ Gross premium calculation. Answer -The gross premium is
calculated as net premium (mortality minus interest earned) plus
expenses (or loading).
⫸ Human life value approach. Answer -A method of calculating the
amount of life insurance needed that takes into account the insured's
wages, years until retirement, and inflation.
⫸ Producer's disclosure requirements. Answer -A producer must
disclose how the insurer would use outside information regarding the
applicant and what requirements were needed to obtain the insurance
license.
⫸ Survivorship insurance. Answer -A type of life insurance that
provides for the financial needs of children in the event of one or both
parents dying prematurely.
⫸ Juvenile protection provision. Answer -A provision in life
insurance that offers protection for juvenile insureds.
STUDY GUIDE 2026 COMPLETE
QUESTIONS AND ANSWERS.
⫸ age in underwriting. Answer -Age provides sound statistical data
for determining the probability of loss.
⫸ medical history in underwriting. Answer -Medical history provides
sound statistical data for determining the probability of loss.
⫸ sex in underwriting. Answer -Sex provides sound statistical data
for determining the probability of loss.
⫸ implied authority. Answer -Authority that is not explicitly stated
but is assumed to be granted to an agent.
⫸ apparent authority. Answer -Authority that others believe an agent
has based on the agent's actions.
⫸ losses. Answer -Losses refer to the financial impact of perils
covered by an insurance policy.
⫸ risks. Answer -Risks refer to the uncertainty regarding financial
loss.
,⫸ hazards. Answer -Hazards are conditions that increase the
likelihood of a peril occurring.
⫸ transfer. Answer -A method of dealing with risk where the risk is
shifted to another party, typically through insurance.
⫸ avoidance. Answer -A method of dealing with risk where the risk
is eliminated entirely.
⫸ retention. Answer -A method of dealing with risk where the
individual or organization assumes the risk.
⫸ adhesion. Answer -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.
⫸ stock insurance companies. Answer -only stock insurance
companies are owned and controlled by stockholders.
⫸ aleatory. Answer -an insurance contract is an aleatory contract in
that it requires a relatively small amount of premium for a large risk.
⫸ consideration. Answer -consideration is something of value that
each party gives to the other. The consideration on the part of the
insured is the payment of premium and the representations made in
the application.
,⫸ competent party. Answer -when an insurer and insured enter into a
contract, both parties must be legal of age and mentally competent.
⫸ good health. Answer -the binding force in any contract is
consideration. Consideration on the part of the insured is the payment
of premiums and the health representations made in the application.
⫸ application. Answer -the application contains most of the
information used for underwriting purposes; this is why its
completeness and accuracy are so critical.
⫸ life insurance. Answer -the best reason to purchase life insurance
rather than annuities is to create an estate.
⫸ Immediate estate. Answer -An estate created by the death of the
insured.
⫸ Survivorship protection. Answer -A personal use of life insurance
that provides funds necessary for survivors to maintain their lifestyle
in the event of the insured's death.
⫸ Producer's responsibilities upon policy delivery. Answer -A
producer must explain policy provisions, exclusions, and riders,
collect any due premium, and have the insured sign the statement of
continued good health.
⫸ Insurable interest. Answer -A requirement that must exist between
individuals at the time a life insurance policy is issued, often
presumed in relationships like spouses, parents, and children.
, ⫸ Medical exam for life insurance. Answer -An exam that may be
completed by a paramedic or examining physician at the insurer's
expense.
⫸ Expenses in insurance. Answer -The factor added to the net
premium to cover the costs of the insurer in obtaining and maintaining
the business, also known as loading.
⫸ Gross premium calculation. Answer -The gross premium is
calculated as net premium (mortality minus interest earned) plus
expenses (or loading).
⫸ Human life value approach. Answer -A method of calculating the
amount of life insurance needed that takes into account the insured's
wages, years until retirement, and inflation.
⫸ Producer's disclosure requirements. Answer -A producer must
disclose how the insurer would use outside information regarding the
applicant and what requirements were needed to obtain the insurance
license.
⫸ Survivorship insurance. Answer -A type of life insurance that
provides for the financial needs of children in the event of one or both
parents dying prematurely.
⫸ Juvenile protection provision. Answer -A provision in life
insurance that offers protection for juvenile insureds.
