PRIMERICA LIFE INSURANCE EXAM 2026
COMPLETE PRACTICE QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS LIFE INSURANCE
LICENSING EXAM STUDY GUIDE GRADE
A+ 2026 EDITION
In an Adjustable Life policy all of the following can be changed by the policy
owner EXCEPT
a. the amount of the insurance
b. the type of investment
c. the length of the coverage
d. the premium - CORRECT ANSWER -B. the type of investment
what type of annuity promises to pay a beneficiary, in a lump sum, the
difference between the amount paid into the contract and the benefits
received prior to the annuitants death?
a. cash refund annuity
b. installment refund annuity
c. joint and survivor annuity
d. pure life annuity - CORRECT ANSWER -A.cash refund annuity
,which is true about a spouse term rider?
a. the rider is usually level term insurance
b. coverage is allowed for an unlimited time
c. the rider is decreasing term insurance
d. coverage is allowed up to age 75 - CORRECT ANSWER -A. the rider is
usually level term insurance
if an employee wants to enter the group outside of the open enrollment
period, to reduce adverse selection, the insurer may
a. increase medical requirements on existing members
b. require evidence of insurability
c. require a higher premium
d. prolong the open enrollment period - CORRECT ANSWER -B. require
evidence of insurability
which of the following types of agent authority is also called "perceived
authority"
a. express
b. implied
c. fiduciary
d. apparent - CORRECT ANSWER -D. apparent
,who might receive dividends from a mutual insurer?
a. stockholders
b. agents
c. policyholders
d. subscribers - CORRECT ANSWER -C. policyholders
A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled,
what will happen to the life insurance premiums?
a. the insured will have to pay premiums for 6 months. If at the end of this
period the father is still disabled, the insured will be refunded the
premiums
b. the insureds premiums will be waived until she is 21
c. the premiums will become tax deductible until the insureds 18th birthday
d. since it is the policyowner, and not the insured, who has become
disabled, the life insurance policy will not be affected - CORRECT ANSWER -
B. the insureds premiums will be waived until she is 21
the life insurance policy clause that prevents an insurance company from
denying payment of a death claim after a specified period of time is know as
the
a. incontestability clause
b. reinstatement clause
c. insuring clause
, d. misstatement of age clause - CORRECT ANSWER -A. incontestability
clause
mortality - interest + expense=
a. gross premiums
b. benefits budget
c. operating expenses
d. net premium - CORRECT ANSWER -A. gross premium
what would be considered a disadvantage of owning a fixed annuity?
a. decrease in purchasing power of the benefit in times of inflation
b. investment risks being carried by he annuity owners
c. interest rate dependence on stock performance
d. guaranteed minimum interest rate - CORRECT ANSWER -A. decrease in
purchasing power of the benefit in times of inflation
all of the following statements are true regarding tax-qualified annuities
EXCEPT:
a. annuity earnings are tax deferred
b. they must be approved by the IRS
c. withdrawals are taxed
COMPLETE PRACTICE QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS LIFE INSURANCE
LICENSING EXAM STUDY GUIDE GRADE
A+ 2026 EDITION
In an Adjustable Life policy all of the following can be changed by the policy
owner EXCEPT
a. the amount of the insurance
b. the type of investment
c. the length of the coverage
d. the premium - CORRECT ANSWER -B. the type of investment
what type of annuity promises to pay a beneficiary, in a lump sum, the
difference between the amount paid into the contract and the benefits
received prior to the annuitants death?
a. cash refund annuity
b. installment refund annuity
c. joint and survivor annuity
d. pure life annuity - CORRECT ANSWER -A.cash refund annuity
,which is true about a spouse term rider?
a. the rider is usually level term insurance
b. coverage is allowed for an unlimited time
c. the rider is decreasing term insurance
d. coverage is allowed up to age 75 - CORRECT ANSWER -A. the rider is
usually level term insurance
if an employee wants to enter the group outside of the open enrollment
period, to reduce adverse selection, the insurer may
a. increase medical requirements on existing members
b. require evidence of insurability
c. require a higher premium
d. prolong the open enrollment period - CORRECT ANSWER -B. require
evidence of insurability
which of the following types of agent authority is also called "perceived
authority"
a. express
b. implied
c. fiduciary
d. apparent - CORRECT ANSWER -D. apparent
,who might receive dividends from a mutual insurer?
a. stockholders
b. agents
c. policyholders
d. subscribers - CORRECT ANSWER -C. policyholders
A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled,
what will happen to the life insurance premiums?
a. the insured will have to pay premiums for 6 months. If at the end of this
period the father is still disabled, the insured will be refunded the
premiums
b. the insureds premiums will be waived until she is 21
c. the premiums will become tax deductible until the insureds 18th birthday
d. since it is the policyowner, and not the insured, who has become
disabled, the life insurance policy will not be affected - CORRECT ANSWER -
B. the insureds premiums will be waived until she is 21
the life insurance policy clause that prevents an insurance company from
denying payment of a death claim after a specified period of time is know as
the
a. incontestability clause
b. reinstatement clause
c. insuring clause
, d. misstatement of age clause - CORRECT ANSWER -A. incontestability
clause
mortality - interest + expense=
a. gross premiums
b. benefits budget
c. operating expenses
d. net premium - CORRECT ANSWER -A. gross premium
what would be considered a disadvantage of owning a fixed annuity?
a. decrease in purchasing power of the benefit in times of inflation
b. investment risks being carried by he annuity owners
c. interest rate dependence on stock performance
d. guaranteed minimum interest rate - CORRECT ANSWER -A. decrease in
purchasing power of the benefit in times of inflation
all of the following statements are true regarding tax-qualified annuities
EXCEPT:
a. annuity earnings are tax deferred
b. they must be approved by the IRS
c. withdrawals are taxed
