PRIMERICA EXAM PREP GUIDE 2026
QUESTIONS AND ANSWERS GRADED A
PLUS
◉ Insurable Interest
Answer: A financial interest in the life of another person. In a
position to loose something of value if the insured should die.
◉ Insurer/Principal
Answer: The insurance company; underwrites the policy and
assumes the risk.
◉ Insuring Clause
Answer: The heart of an insurance policy. It contains the company's
promise to the policyowner and describes the coverage provided
and the policy limits.
◉ Interest Settlement Option
Answer: Upon maturity of an insurance policy the beneficiary
receives periodic payments of the interest earned from the
company's investment of the policy proceed
, ◉ Joint and Survivor Annuity
Answer: An annuity that makes payments to two or more annuitants
throughout their lifetimes. Payments normally reduce at the death of
each annuitant and stop altogether upon the death of the last
annuitant.
◉ Keogh Plan (HR10)
Answer: A qualified retirement plan for self-employed people and
their eligible employees. Contributions are tax deductible and
interest earned is deferred until withdrawn.
◉ Lapsed Policy
Answer: A policy that is no longer in force due to unpaid premiums.
Also known as forfeit, surrender, cancel or terminate.
◉ Law of Agency
Answer: The actions of an agent/producer within the scope of the
authority granted to him/her by the insurer become the actions of
the company
◉ Law of Large Numbers
Answer: States that larger numbers of similar risks grouped
together become more accurately predictable.
QUESTIONS AND ANSWERS GRADED A
PLUS
◉ Insurable Interest
Answer: A financial interest in the life of another person. In a
position to loose something of value if the insured should die.
◉ Insurer/Principal
Answer: The insurance company; underwrites the policy and
assumes the risk.
◉ Insuring Clause
Answer: The heart of an insurance policy. It contains the company's
promise to the policyowner and describes the coverage provided
and the policy limits.
◉ Interest Settlement Option
Answer: Upon maturity of an insurance policy the beneficiary
receives periodic payments of the interest earned from the
company's investment of the policy proceed
, ◉ Joint and Survivor Annuity
Answer: An annuity that makes payments to two or more annuitants
throughout their lifetimes. Payments normally reduce at the death of
each annuitant and stop altogether upon the death of the last
annuitant.
◉ Keogh Plan (HR10)
Answer: A qualified retirement plan for self-employed people and
their eligible employees. Contributions are tax deductible and
interest earned is deferred until withdrawn.
◉ Lapsed Policy
Answer: A policy that is no longer in force due to unpaid premiums.
Also known as forfeit, surrender, cancel or terminate.
◉ Law of Agency
Answer: The actions of an agent/producer within the scope of the
authority granted to him/her by the insurer become the actions of
the company
◉ Law of Large Numbers
Answer: States that larger numbers of similar risks grouped
together become more accurately predictable.
