PRIMERICA LIFE INSURANCE ACTUAL
EXAMINATION 2026 FULL ANSWERS
GRADED A+
⩥ Accidental Death Benefits. Answer: A policy rider that states that the
cause of death will be analyzed to determine if it complies with the
policy description of accidental death.
⩥ Accidental Death Insurance. Answer: An insurance policy that
provides payment if the insured's death is the result of an accident.
⩥ Accumulation Period. Answer: The time before an annuitant's
retirement during which the annuitant is making payments or
investments in an annuity.
⩥ Actual Cash Value (ACV). Answer: The required amount to pay
damages or for property loss. This amount is calculated based on the
property's current replacement value minus depreciation.
⩥ Adhesion. Answer: A contract offered on a "take-it-or leave-it" basis
by an insurer, in which the insured's only option is to either accept or
reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
,⩥ Adjustable Life. Answer: Life insurance that permits changes in the
face amount, premium amount, period of protection, and the duration of
the premium payment period.
⩥ Adjuster. Answer: A representative of an insurance company who
investigates and acts on the behalf of the company to obtain agreements
for the amount of the insurance claim.
⩥ Administrator. Answer: An individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a deceased person.
⩥ Admitted (Authorized) Insurer. Answer: An insurance company
authorized and licensed to transact business in a particular state.
⩥ Adverse Selection. Answer: The tendency of risks with higher
probability of loss to purchase and maintain insurance more often than
the risks who present lower probability.
⩥ Agency. Answer: An insurance sales office or company.
⩥ Agent. Answer: An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer.
⩥ Agent Appointment. Answer: The authorization of an agent to act for
or represent an insurer
, ⩥ Agent's Authority. Answer: Special powers granted to an agent by his
or her agency contract.
⩥ Aleatory. Answer: A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will
pay in the event of a loss.
⩥ Alien Insurer. Answer: An insurance company that is incorporated
outside the United States.
⩥ Annual Statement. Answer: A detailed financial report that an
insurance company must submit every year to the insurance department
of state(s) in which it conducts business.
⩥ Annuity. Answer: A contract that provides income for a specified
period of years, or for life.
⩥ Apparent Authority. Answer: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or
because of circumstances the principal created.
⩥ Applicant. Answer: A person making application for, or offering
himself, herself or an other to be insured under an insurance contract.
EXAMINATION 2026 FULL ANSWERS
GRADED A+
⩥ Accidental Death Benefits. Answer: A policy rider that states that the
cause of death will be analyzed to determine if it complies with the
policy description of accidental death.
⩥ Accidental Death Insurance. Answer: An insurance policy that
provides payment if the insured's death is the result of an accident.
⩥ Accumulation Period. Answer: The time before an annuitant's
retirement during which the annuitant is making payments or
investments in an annuity.
⩥ Actual Cash Value (ACV). Answer: The required amount to pay
damages or for property loss. This amount is calculated based on the
property's current replacement value minus depreciation.
⩥ Adhesion. Answer: A contract offered on a "take-it-or leave-it" basis
by an insurer, in which the insured's only option is to either accept or
reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
,⩥ Adjustable Life. Answer: Life insurance that permits changes in the
face amount, premium amount, period of protection, and the duration of
the premium payment period.
⩥ Adjuster. Answer: A representative of an insurance company who
investigates and acts on the behalf of the company to obtain agreements
for the amount of the insurance claim.
⩥ Administrator. Answer: An individual appointed by a court as a
fiduciary to settle the financial affairs and estate of a deceased person.
⩥ Admitted (Authorized) Insurer. Answer: An insurance company
authorized and licensed to transact business in a particular state.
⩥ Adverse Selection. Answer: The tendency of risks with higher
probability of loss to purchase and maintain insurance more often than
the risks who present lower probability.
⩥ Agency. Answer: An insurance sales office or company.
⩥ Agent. Answer: An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer.
⩥ Agent Appointment. Answer: The authorization of an agent to act for
or represent an insurer
, ⩥ Agent's Authority. Answer: Special powers granted to an agent by his
or her agency contract.
⩥ Aleatory. Answer: A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will
pay in the event of a loss.
⩥ Alien Insurer. Answer: An insurance company that is incorporated
outside the United States.
⩥ Annual Statement. Answer: A detailed financial report that an
insurance company must submit every year to the insurance department
of state(s) in which it conducts business.
⩥ Annuity. Answer: A contract that provides income for a specified
period of years, or for life.
⩥ Apparent Authority. Answer: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or
because of circumstances the principal created.
⩥ Applicant. Answer: A person making application for, or offering
himself, herself or an other to be insured under an insurance contract.
