Primerica Practice Test Exam with
Complete Solutions
The receipt given to a life insurance applicant when the application is completed and the
initial premium is received is called a(n) - correct answer-conditional receipt
Statements in the application for insurance that are believed to be true to the best of the
applicant's knowledge are called - correct answer-representations
An annuity is considered fixed when it does all of the following EXCEPT - correct
answer-provides the annuitant with an interest rate that is the lesser of the guaranteed
or current rate
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called - correct answer-continuous premium
(straight) life
The policy and a copy of the application, along with any riders and amendments, is
called the - correct answer-entire contract
Money borrowed from the policy's cash value is - correct answer-not taxable
Which of the following annuity products requires an agent to hold a securities license? -
correct answer-variable annuities
Which type of annuity settlement stops when the annuitant dies? - correct answer-life
income annuity
At what age can a participant receive distributions from a qualified plan without incurring
a 10% penalty? - correct answer-59.5
Which settlement option guarantees an income for 2 or more recipients for as long as
they live - correct answer-joint and survivor
Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the surviving partner to use the death benefit to
purchase the deceased's business interests? - correct answer-buy-sell agreement
Which of the following would be considered a flexible premium policy? - correct answer-
universal life
Complete Solutions
The receipt given to a life insurance applicant when the application is completed and the
initial premium is received is called a(n) - correct answer-conditional receipt
Statements in the application for insurance that are believed to be true to the best of the
applicant's knowledge are called - correct answer-representations
An annuity is considered fixed when it does all of the following EXCEPT - correct
answer-provides the annuitant with an interest rate that is the lesser of the guaranteed
or current rate
The most common type of whole life insurance where premiums are payable over the
whole life of the insured to age 100 is called - correct answer-continuous premium
(straight) life
The policy and a copy of the application, along with any riders and amendments, is
called the - correct answer-entire contract
Money borrowed from the policy's cash value is - correct answer-not taxable
Which of the following annuity products requires an agent to hold a securities license? -
correct answer-variable annuities
Which type of annuity settlement stops when the annuitant dies? - correct answer-life
income annuity
At what age can a participant receive distributions from a qualified plan without incurring
a 10% penalty? - correct answer-59.5
Which settlement option guarantees an income for 2 or more recipients for as long as
they live - correct answer-joint and survivor
Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the surviving partner to use the death benefit to
purchase the deceased's business interests? - correct answer-buy-sell agreement
Which of the following would be considered a flexible premium policy? - correct answer-
universal life
