©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
Primerica 3 Exam Questions With Correct
Answers 100% Verified.
Which of the following is not ordinary life insurance? a. A life paid up to 65 policy
b. A 30 year decreasing term policy
c. A group life insurance policy
d. A 20-year endowment policy - Answer✔c. A group life insurance policy
A failure to communicate information which a party to an insurance contract knows and should
communicate, is called an act of:
a. Concealment
b. Intimidation
c. Warranty
d. Coercion - Answer✔a. Concealment
When a family policy covers children all of the following are true, except:
a. The coverage is term insurance for a fixed amount
b. Evidence of insurability is required if coverage for children is permanent insurance
c. There is no additional charge for covering new additions to the family
d. All children living with the family are covered even if born or adopted after the policy is
issued - Answer✔b. Evidence of insurability is required of coverage for children is permanent
insurance
Which of the following is not one of the common personal uses of life insurance?
a. Funding a buy/sell agreement
b. Helping to fund a person's retirement
c. Creating emergency funds to avoid the need to liquidate assets
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, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
d. Creation of an immediate estate - Answer✔a. Funding a buy/sell agreement
An individual license is considered terminated:
a. When transferred to another person
b. When transferred to another license
c. On the death of the licensee
d. When transferred to a beneficiary - Answer✔c. On the death of a licensee
The movie company concerned about their financial losses in case of the illness of one of their
actors would purchase:
a. Surgery insurance
b. Worker's compensation
c. Miscellaneous insurance
d. Credit insurance - Answer✔a. Surety insurance
What must insurer do who accepts an application from an agent who is not specifically
appointed by the insurer and then issued a policy from the application?
a. The agent must become an employee of that company within 30 days or re-submit the
application
b. Add the agent's name on the company's list of approved agents
c. Send the agent an employee approval notice within 30 days of the policy issuance
d. Forward to the Insurance Commissioner a Notice of Appointment within the 14 days of
receipt of application - Answer✔d. Forward to the Insurance Commissioner a Notice of
Appointment within 14 days of receipt of application
Which of the following is considered ordinary life insurance?
a. Mortgage insurance
b. Continuous premium whole life
c. Group insurance
d. 30-year decreasing term insurance - Answer✔a. Mortgage insurance
Which of the following is a true statement regarding the Social Security (OASDHI) program?
a. The program fully funded
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, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
b. Except for a few exemptions, it is a voluntary program
c. The program provides a minimum floor of income and is meant to supplement a retirees own
personal program
d. The actuarial value of each person's contribution is equal to the actual value of each person's
benefit - Answer✔c. The program provides a minimum floor of income and is meant to
supplement a retirees own personal program
Which party has the rights in a life insurance policy only after the death of the insured?
a. The policy owner
b. The beneficiary
c. The applicant
d. The insured - Answer✔b. The beneficiary
A person spends $10,000 in a single premium annuity, and another $10,000 in a certificate of
deposit (CD). Both pay 10% interest annually the person is in a 31% income tax bracket. For 40
years this person does not touch this annuity and reinvests all income from the CD at 10%.
Which of the following statements is true?
a. The CD would be worth several hundred thousand more because there is no commission paid
on a CD
b. The annuity would be worth several hundred thousand more because of the tax deferral of
the earnings
c. The CD would be worth several hundred thousand more because of tax deferral
d. They would be worth approximately the same amount after the payment of the tax deferred
income taxes - Answer✔b. The annuity would be worth several hundred thousand more
because of the tax deferral of the earnings
Listed below are descriptions of four types of policies? Which is the term policy?
a. The policy premium increases after three years and then it remains the same until the policy
is paid up at age 65
b. The policy has a face amount of $100,000. The policyholder pays premiums annually. At the
end of the 10 years the cash value is $25,000
c. The policy premiums must be paid for 20 years. Afterwards, the policy continues with no
additional premiums paid. The policy has non-forfeiture values
d. The policy has a face amount of $100,000. Every five years, the premium paid increases.
After ten years, the policyholder stops paying premiums and the coverage stops. The policy has
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Primerica 3 Exam Questions With Correct
Answers 100% Verified.
Which of the following is not ordinary life insurance? a. A life paid up to 65 policy
b. A 30 year decreasing term policy
c. A group life insurance policy
d. A 20-year endowment policy - Answer✔c. A group life insurance policy
A failure to communicate information which a party to an insurance contract knows and should
communicate, is called an act of:
a. Concealment
b. Intimidation
c. Warranty
d. Coercion - Answer✔a. Concealment
When a family policy covers children all of the following are true, except:
a. The coverage is term insurance for a fixed amount
b. Evidence of insurability is required if coverage for children is permanent insurance
c. There is no additional charge for covering new additions to the family
d. All children living with the family are covered even if born or adopted after the policy is
issued - Answer✔b. Evidence of insurability is required of coverage for children is permanent
insurance
Which of the following is not one of the common personal uses of life insurance?
a. Funding a buy/sell agreement
b. Helping to fund a person's retirement
c. Creating emergency funds to avoid the need to liquidate assets
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
d. Creation of an immediate estate - Answer✔a. Funding a buy/sell agreement
An individual license is considered terminated:
a. When transferred to another person
b. When transferred to another license
c. On the death of the licensee
d. When transferred to a beneficiary - Answer✔c. On the death of a licensee
The movie company concerned about their financial losses in case of the illness of one of their
actors would purchase:
a. Surgery insurance
b. Worker's compensation
c. Miscellaneous insurance
d. Credit insurance - Answer✔a. Surety insurance
What must insurer do who accepts an application from an agent who is not specifically
appointed by the insurer and then issued a policy from the application?
a. The agent must become an employee of that company within 30 days or re-submit the
application
b. Add the agent's name on the company's list of approved agents
c. Send the agent an employee approval notice within 30 days of the policy issuance
d. Forward to the Insurance Commissioner a Notice of Appointment within the 14 days of
receipt of application - Answer✔d. Forward to the Insurance Commissioner a Notice of
Appointment within 14 days of receipt of application
Which of the following is considered ordinary life insurance?
a. Mortgage insurance
b. Continuous premium whole life
c. Group insurance
d. 30-year decreasing term insurance - Answer✔a. Mortgage insurance
Which of the following is a true statement regarding the Social Security (OASDHI) program?
a. The program fully funded
2
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
b. Except for a few exemptions, it is a voluntary program
c. The program provides a minimum floor of income and is meant to supplement a retirees own
personal program
d. The actuarial value of each person's contribution is equal to the actual value of each person's
benefit - Answer✔c. The program provides a minimum floor of income and is meant to
supplement a retirees own personal program
Which party has the rights in a life insurance policy only after the death of the insured?
a. The policy owner
b. The beneficiary
c. The applicant
d. The insured - Answer✔b. The beneficiary
A person spends $10,000 in a single premium annuity, and another $10,000 in a certificate of
deposit (CD). Both pay 10% interest annually the person is in a 31% income tax bracket. For 40
years this person does not touch this annuity and reinvests all income from the CD at 10%.
Which of the following statements is true?
a. The CD would be worth several hundred thousand more because there is no commission paid
on a CD
b. The annuity would be worth several hundred thousand more because of the tax deferral of
the earnings
c. The CD would be worth several hundred thousand more because of tax deferral
d. They would be worth approximately the same amount after the payment of the tax deferred
income taxes - Answer✔b. The annuity would be worth several hundred thousand more
because of the tax deferral of the earnings
Listed below are descriptions of four types of policies? Which is the term policy?
a. The policy premium increases after three years and then it remains the same until the policy
is paid up at age 65
b. The policy has a face amount of $100,000. The policyholder pays premiums annually. At the
end of the 10 years the cash value is $25,000
c. The policy premiums must be paid for 20 years. Afterwards, the policy continues with no
additional premiums paid. The policy has non-forfeiture values
d. The policy has a face amount of $100,000. Every five years, the premium paid increases.
After ten years, the policyholder stops paying premiums and the coverage stops. The policy has
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