PRIMERICA LIFE INSURANCE EXAM
ACTUAL EXAM PAPER 2026 QUESTIONS
WITH VERIFIED ANSWERS GRADED A+
⫸ reduction Answer: The insured's change in lifestyle and habits would
likely reduce the chances of health problems.
⫸ offer in insurance Answer: An applicant submits an application to the
insurer; acceptance takes place when an insurer's underwriter approves
the application and issues a policy.
⫸ perils Answer: Perils are the causes of loss insured against in an
insurance policy.
⫸ express authority Answer: Express powers are written into the
contract between the insurer and the agent.
⫸ domestic Answer: A company is domestic when doing business
within the state in which it is incorporated.
⫸ discriminatory factors in underwriting Answer: Race, religion, sexual
orientation, etc. are considered discriminatory because there is not sound
statistical data to show that they affect the probability of loss.
,⫸ fiduciary responsibility Answer: An agent's fiduciary responsibility
includes handling insurer funds in a trust capacity.
⫸ agents contract with the principal Answer: The principal grants
authority to an agent through the agent's contract.
⫸ initial premium Answer: The insurer approves the application and
receives the initial premium.
⫸ 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.
ACTUAL EXAM PAPER 2026 QUESTIONS
WITH VERIFIED ANSWERS GRADED A+
⫸ reduction Answer: The insured's change in lifestyle and habits would
likely reduce the chances of health problems.
⫸ offer in insurance Answer: An applicant submits an application to the
insurer; acceptance takes place when an insurer's underwriter approves
the application and issues a policy.
⫸ perils Answer: Perils are the causes of loss insured against in an
insurance policy.
⫸ express authority Answer: Express powers are written into the
contract between the insurer and the agent.
⫸ domestic Answer: A company is domestic when doing business
within the state in which it is incorporated.
⫸ discriminatory factors in underwriting Answer: Race, religion, sexual
orientation, etc. are considered discriminatory because there is not sound
statistical data to show that they affect the probability of loss.
,⫸ fiduciary responsibility Answer: An agent's fiduciary responsibility
includes handling insurer funds in a trust capacity.
⫸ agents contract with the principal Answer: The principal grants
authority to an agent through the agent's contract.
⫸ initial premium Answer: The insurer approves the application and
receives the initial premium.
⫸ 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.
