PRIMERICA CERTIFICATION EVALUATION
2026 STUDY GUIDE QUESTIONS AND
ANSWERS
◉ Decreasing Term
Answer: Term life insurance in which the face amount of the policy
decreases over time in scheduled steps. Most often used to cover a
debt obligation (mortgage).
◉ Dividends
Answer: Distributions paid out by insurance companies. Stock
insurers pay dividends (portion of profit) to stockholders and they
are taxable. Mutual insurers pay dividends (return of unneeded
premiums) to policyowners and they are not taxable. Dividends are
never guaranteed.
◉ Equity Indexed Annuity
Answer: The annuity that has a guaranteed minimum interest rate
and allows the annuitant to invest money in an index (i.e.: S&P 500).
The investments grow as the index grows.
◉ Estoppel
,Answer: Legally preventing someone from asserting or re-asserting
a known right that they have previously waived.
◉ Extended Term Insurance
Answer: Nonforfeiture option where cash value is used to make a
single premium payment on a Term Insurance Policy of the same
face amount as the original policy. Original policy can be reinstated.
Not available on rated policies.
◉ Face Amount
Answer: Amount payable in the event of death of the insured. Also
called face value, death benefit, policy proceeds, coverage, stated
amount, indemnity amount or proceeds to the beneficiary.
◉ Facultative Reinsurance v. Treaty Reinsurance
Answer: Facultative: Transferring risk from one insurance company
to another on a policy-by-policy basis. Treaty: Transferring risk from
one insurance company to another under a blanket agreement
◉ Fair Credit Reporting Act
Answer: A federal law that protects consumers in regard to their
credit history. Establishes guidelines for how companies can access
consumers' credit reports and what types of disclosures and
notifications are required.
, ◉ Financial Needs Approach
Answer: In determining how much life insurance is needed the
needs of the surviving family are the focus. Using needs analysis
worksheets, an amount is determined to meet the needs of the
surviving family regardless of the earnings of the insured.
◉ Fixed Amount Annuity
Answer: A Life Annuity that guarantees a fixed dollar payment at
regular intervals during the lifetime of the annuitant.
◉ Fixed Amount Settlement Option
Answer: Upon maturity of an insurance policy the beneficiary
receives periodic payments of a set dollar amount from the policy
proceeds.
◉ Fixed Period Settlement Option
Answer: Upon maturity of an insurance policy, the beneficiary
receives income from the policy proceeds for a stated period of time.
◉ Free Look Provision
Answer: A policy provision required by state law that establishes a
set number of days (usually 10) for the policyowner to review a
newly issued policy. The policyowner may return the policy to the
insurer during this time for any reason and receive a 100% refund.
2026 STUDY GUIDE QUESTIONS AND
ANSWERS
◉ Decreasing Term
Answer: Term life insurance in which the face amount of the policy
decreases over time in scheduled steps. Most often used to cover a
debt obligation (mortgage).
◉ Dividends
Answer: Distributions paid out by insurance companies. Stock
insurers pay dividends (portion of profit) to stockholders and they
are taxable. Mutual insurers pay dividends (return of unneeded
premiums) to policyowners and they are not taxable. Dividends are
never guaranteed.
◉ Equity Indexed Annuity
Answer: The annuity that has a guaranteed minimum interest rate
and allows the annuitant to invest money in an index (i.e.: S&P 500).
The investments grow as the index grows.
◉ Estoppel
,Answer: Legally preventing someone from asserting or re-asserting
a known right that they have previously waived.
◉ Extended Term Insurance
Answer: Nonforfeiture option where cash value is used to make a
single premium payment on a Term Insurance Policy of the same
face amount as the original policy. Original policy can be reinstated.
Not available on rated policies.
◉ Face Amount
Answer: Amount payable in the event of death of the insured. Also
called face value, death benefit, policy proceeds, coverage, stated
amount, indemnity amount or proceeds to the beneficiary.
◉ Facultative Reinsurance v. Treaty Reinsurance
Answer: Facultative: Transferring risk from one insurance company
to another on a policy-by-policy basis. Treaty: Transferring risk from
one insurance company to another under a blanket agreement
◉ Fair Credit Reporting Act
Answer: A federal law that protects consumers in regard to their
credit history. Establishes guidelines for how companies can access
consumers' credit reports and what types of disclosures and
notifications are required.
, ◉ Financial Needs Approach
Answer: In determining how much life insurance is needed the
needs of the surviving family are the focus. Using needs analysis
worksheets, an amount is determined to meet the needs of the
surviving family regardless of the earnings of the insured.
◉ Fixed Amount Annuity
Answer: A Life Annuity that guarantees a fixed dollar payment at
regular intervals during the lifetime of the annuitant.
◉ Fixed Amount Settlement Option
Answer: Upon maturity of an insurance policy the beneficiary
receives periodic payments of a set dollar amount from the policy
proceeds.
◉ Fixed Period Settlement Option
Answer: Upon maturity of an insurance policy, the beneficiary
receives income from the policy proceeds for a stated period of time.
◉ Free Look Provision
Answer: A policy provision required by state law that establishes a
set number of days (usually 10) for the policyowner to review a
newly issued policy. The policyowner may return the policy to the
insurer during this time for any reason and receive a 100% refund.
