PRIMERICA LIFE INSURANCE
COMPREHENSIVE TEST SCRIPT 2026
QUESTIONS WITH SOLUTIONS 100%
CORRECT.
◉ 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
C) Law of Group Evaluation
D) Law of Large Numbers. Answer: Law of Large Numbers
◉ When the insured selects the extended term nonforfeiture option,
the cash value will be used to purchase term insurance with what face
amount?
a) The same as the original policy minus the cash value
,b) Equal to the original policy for as long as the cash values will
purchase.
c)In lesser amounts for the remaining policy term of age 100.
d)Equal to the cash value surrendered from the policy. Answer: Equal
to the original policy for as long as the cash values will purchase:
With this option, the cash value is used as a single premium to
purchase the same face amount as the original policy for as long a
period of time as the cash will buy at the insured's current age.
◉ Your client wants both protection and savings from the insurance
and is willing to pay premiums until retirement at age 65. What would
be the right policy for this client?
a) Interest-sensitive whole life
b)Life annuity with period certain
c)Increasing term
d)Limited pay whole life. Answer: Limited pay whole life:
Premium payments will cease at her age 65, but coverage will
continue to her death or age 100.
◉ An applicant wants to buy a policy that has a cash value element.
Which type should she buy?
a) Term
b) Permanent
c)Stock
d)Investment. Answer: Permanent:
Unlike term insurance, permanent insurance provides lifetime death
protection and a savings or cash value option.
, ◉ Because an agent is using stationery with the logo of an insurance
company, applicants for insurance assume that the agent is authorized
to transact on behalf of that insurer. What type of agent authority does
this describe?
A) Assumed
b) Apparent
c)Express
d)Implied. Answer: Apparent:
Apparent authority (also known as perceived authority) is the
appearance, or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the
principal created.
◉ Michigan's continuing education requirement has each of the
following characteristics EXCEPT
a) It requires satisfactory completion of at least 24 hours of approved
training every biennium.
b) Other than the 3 hours of ethics, licensees may take courses in any
line.
c)It allows for up to 15 excess credit hours to be carried forward to
the next reporting period.
d)At least 3 hours must cover ethics.. Answer: It allows for up to 15
excess credit hours to be carried forward to the next reporting period.
Reason: Up to 12 excess credit hours of CE may be carried over to the
next review period.
◉ An insured purchased a life insurance policy on his life naming his
wife as primary beneficiary, and his daughter as contingent
COMPREHENSIVE TEST SCRIPT 2026
QUESTIONS WITH SOLUTIONS 100%
CORRECT.
◉ 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
C) Law of Group Evaluation
D) Law of Large Numbers. Answer: Law of Large Numbers
◉ When the insured selects the extended term nonforfeiture option,
the cash value will be used to purchase term insurance with what face
amount?
a) The same as the original policy minus the cash value
,b) Equal to the original policy for as long as the cash values will
purchase.
c)In lesser amounts for the remaining policy term of age 100.
d)Equal to the cash value surrendered from the policy. Answer: Equal
to the original policy for as long as the cash values will purchase:
With this option, the cash value is used as a single premium to
purchase the same face amount as the original policy for as long a
period of time as the cash will buy at the insured's current age.
◉ Your client wants both protection and savings from the insurance
and is willing to pay premiums until retirement at age 65. What would
be the right policy for this client?
a) Interest-sensitive whole life
b)Life annuity with period certain
c)Increasing term
d)Limited pay whole life. Answer: Limited pay whole life:
Premium payments will cease at her age 65, but coverage will
continue to her death or age 100.
◉ An applicant wants to buy a policy that has a cash value element.
Which type should she buy?
a) Term
b) Permanent
c)Stock
d)Investment. Answer: Permanent:
Unlike term insurance, permanent insurance provides lifetime death
protection and a savings or cash value option.
, ◉ Because an agent is using stationery with the logo of an insurance
company, applicants for insurance assume that the agent is authorized
to transact on behalf of that insurer. What type of agent authority does
this describe?
A) Assumed
b) Apparent
c)Express
d)Implied. Answer: Apparent:
Apparent authority (also known as perceived authority) is the
appearance, or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the
principal created.
◉ Michigan's continuing education requirement has each of the
following characteristics EXCEPT
a) It requires satisfactory completion of at least 24 hours of approved
training every biennium.
b) Other than the 3 hours of ethics, licensees may take courses in any
line.
c)It allows for up to 15 excess credit hours to be carried forward to
the next reporting period.
d)At least 3 hours must cover ethics.. Answer: It allows for up to 15
excess credit hours to be carried forward to the next reporting period.
Reason: Up to 12 excess credit hours of CE may be carried over to the
next review period.
◉ An insured purchased a life insurance policy on his life naming his
wife as primary beneficiary, and his daughter as contingent
