©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
Primerica Life Exam Questions With Correct
Answers 100% Verified.
Which of the following could be used when a corporation, association, partnership, or limited
liability partnership acts as a producer?
a)Mutual Company
b)Business Entity
c)Natural Group
d)Stock Company - Answer✔b)Business Entity
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
a)Permanent
b)Stock
c)Investment
d)Term - Answer✔a)Permanent
Who can make changes to the policy once it is in effect?
a)The insured
b)The policyowner
c)The agent
d)An executive officer of the insurer - Answer✔d)An executive officer of the insurer
All of the following are examples of risk retention EXCEPT
a)Premiums
b)Deductibles.
c)Copayments.
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, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
d)Self-insurance. - Answer✔a)Premiums
If an insurer terminates a producer, the Commissioner will receive a notification. Within how
many days of this notification must the producer be sent a copy?
a)30
b)7
c)10
d)15 - Answer✔d)15
A Straight Life policy has what type of premium?
a)A variable annual premium for the life of the insured
b)A level annual premium for the life of the insured
c)An increasing annual premium for the life of the insured
d)A decreasing annual premium for the life of the insured - Answer✔b)A level annual premium
for the life of the insured
A policyowner who is also the insured wants to name her husband as the beneficiary of her life
policy. She also wishes to retain all of the rights of ownership. The policyowner should have her
husband named as the
a)Contingent beneficiary.
b)Irrevocable beneficiary.
c)Revocable beneficiary.
d)Secondary beneficiary. - Answer✔c)Revocable beneficiary.
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach
an insurance contract?
a)Representation
b)Warranty
c)Concealment
d)Indemnity - Answer✔b)Warranty
When an insurance agency published an advertising brochure, it emphasized the company's
financial stability and sound business practices. In reality, its financial health is terrible, and the
2
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
company will soon have to file for bankruptcy. Which of the following terms best describes the
advertisement?
a)Rebating
b)False financial statement
c)Defamation
d)Twisting - Answer✔b)False financial statement
An insurer wants to obtain information from investigators regarding an applicant for insurance.
What must the insurer do in order to legally acquire this information?
a)Sign a waiver that the information will be kept confidential
b)Present the insured with a Disclosure Authorization Notice
c)Receive written permission from the Department of Insurance
d)Receive a signed statement from the insured which authorizes the investigation -
Answer✔b)Present the insured with a Disclosure Authorization Notice
If a statement of policy information is not furnished to the applicant at the time of application,
how soon must the form be delivered to the applicant?
a)10 days
b)15 days
c)30 days
d)45 days - Answer✔b)15 days
Which of the following is NOT an allowable 1035 exchange?
a)A whole life insurance policy is exchanged for a Universal life insurance policy.
b)An annuity is exchanged for another annuity.
c)A life insurance policy is exchanged for an annuity.
d)A whole life insurance policy is exchanged for a term insurance policy. - Answer✔d)A whole
life insurance policy is exchanged for a term insurance policy.
Which of the following protects the insured from an unintentional policy lapse due to a
nonpayment of premium?
a)Extended term
b)Reinstatement
3
Primerica Life Exam Questions With Correct
Answers 100% Verified.
Which of the following could be used when a corporation, association, partnership, or limited
liability partnership acts as a producer?
a)Mutual Company
b)Business Entity
c)Natural Group
d)Stock Company - Answer✔b)Business Entity
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
a)Permanent
b)Stock
c)Investment
d)Term - Answer✔a)Permanent
Who can make changes to the policy once it is in effect?
a)The insured
b)The policyowner
c)The agent
d)An executive officer of the insurer - Answer✔d)An executive officer of the insurer
All of the following are examples of risk retention EXCEPT
a)Premiums
b)Deductibles.
c)Copayments.
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
d)Self-insurance. - Answer✔a)Premiums
If an insurer terminates a producer, the Commissioner will receive a notification. Within how
many days of this notification must the producer be sent a copy?
a)30
b)7
c)10
d)15 - Answer✔d)15
A Straight Life policy has what type of premium?
a)A variable annual premium for the life of the insured
b)A level annual premium for the life of the insured
c)An increasing annual premium for the life of the insured
d)A decreasing annual premium for the life of the insured - Answer✔b)A level annual premium
for the life of the insured
A policyowner who is also the insured wants to name her husband as the beneficiary of her life
policy. She also wishes to retain all of the rights of ownership. The policyowner should have her
husband named as the
a)Contingent beneficiary.
b)Irrevocable beneficiary.
c)Revocable beneficiary.
d)Secondary beneficiary. - Answer✔c)Revocable beneficiary.
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach
an insurance contract?
a)Representation
b)Warranty
c)Concealment
d)Indemnity - Answer✔b)Warranty
When an insurance agency published an advertising brochure, it emphasized the company's
financial stability and sound business practices. In reality, its financial health is terrible, and the
2
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
company will soon have to file for bankruptcy. Which of the following terms best describes the
advertisement?
a)Rebating
b)False financial statement
c)Defamation
d)Twisting - Answer✔b)False financial statement
An insurer wants to obtain information from investigators regarding an applicant for insurance.
What must the insurer do in order to legally acquire this information?
a)Sign a waiver that the information will be kept confidential
b)Present the insured with a Disclosure Authorization Notice
c)Receive written permission from the Department of Insurance
d)Receive a signed statement from the insured which authorizes the investigation -
Answer✔b)Present the insured with a Disclosure Authorization Notice
If a statement of policy information is not furnished to the applicant at the time of application,
how soon must the form be delivered to the applicant?
a)10 days
b)15 days
c)30 days
d)45 days - Answer✔b)15 days
Which of the following is NOT an allowable 1035 exchange?
a)A whole life insurance policy is exchanged for a Universal life insurance policy.
b)An annuity is exchanged for another annuity.
c)A life insurance policy is exchanged for an annuity.
d)A whole life insurance policy is exchanged for a term insurance policy. - Answer✔d)A whole
life insurance policy is exchanged for a term insurance policy.
Which of the following protects the insured from an unintentional policy lapse due to a
nonpayment of premium?
a)Extended term
b)Reinstatement
3
