PRIMERICA LIFE INSURANCE EXAM
EXAMINATION TEST 2026 QUESTIONS
WITH SOLUTIONS
⫸ 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 Answer: 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 Answer: 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 Answer: 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 Answer: 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 Answer: 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? Answer: It needs IRS approval
⫸ Which of the following may NOT be included in an insurance
company's advertisement? Answer: That its policies are covered by a
state Guaranty Association
⫸ Which of the following is the most common way to transfer risk?
Answer: Purchase Insurance
⫸ Which of the following would provide an underwriter with
information concerning an applicant's health history? Answer: The
medical information bureau
⫸ A temporary producer license could be issued without examination to
all of the following EXCEPT. Answer: 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 Answer: Change any incorrect statement on the application
by personally initialing next to the corrected statement.
⫸ According to the nonforfeiture law, if the owner decides to surrender
a deferred annuity prior to annuitization, the owner is entitled to which
of the following>
A) Guaranteed Surrender Value
B) No Payments
C) Annuity Dividends
D) Full premium refund without any changes Answer: Guaranteed
Surrender Value
⫸ Which law is the foundation of the statistical prediction of loss upon
which rates for insurance are calculated?
A) Law of Masses
B) Law of Averages
EXAMINATION TEST 2026 QUESTIONS
WITH SOLUTIONS
⫸ 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 Answer: 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 Answer: 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 Answer: 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 Answer: 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 Answer: 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? Answer: It needs IRS approval
⫸ Which of the following may NOT be included in an insurance
company's advertisement? Answer: That its policies are covered by a
state Guaranty Association
⫸ Which of the following is the most common way to transfer risk?
Answer: Purchase Insurance
⫸ Which of the following would provide an underwriter with
information concerning an applicant's health history? Answer: The
medical information bureau
⫸ A temporary producer license could be issued without examination to
all of the following EXCEPT. Answer: 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 Answer: Change any incorrect statement on the application
by personally initialing next to the corrected statement.
⫸ According to the nonforfeiture law, if the owner decides to surrender
a deferred annuity prior to annuitization, the owner is entitled to which
of the following>
A) Guaranteed Surrender Value
B) No Payments
C) Annuity Dividends
D) Full premium refund without any changes Answer: Guaranteed
Surrender Value
⫸ Which law is the foundation of the statistical prediction of loss upon
which rates for insurance are calculated?
A) Law of Masses
B) Law of Averages
