PRIMERICA LIFE INSURANCE EXAM 2024/2025
MOST TESTED EXAM COMPLETE QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) / ALREADY GRADED A+
which of the following insurers are owned by stockholders who have the usual
rights of ownership, including the right of voting?
a. reciprocal
b. fraternal
c. stock
d. mutual - ans -C. stock
only stock insurance companies are owned and controlled by stockholders
which of the following best describes the concept that the insured pays a small
amount of premium for a large amount of risk on the part of the insurance
company?
a. subrogation
b. warranty
c. aleatory
d. adhesion - ans -C. aleatory
an insurance contract is an aleatory contract in that it requires a relatively small
amount of premium for a large risk
When an insured makes truthful statements on the application for insurance and
pays the required premium, it is known as which of the following?
a. legal purpose
b. contract of adhesion
c. acceptance
d. consideration - ans -D. consideration
,consideration is something of value that each party gives to the other. The
consideration on the part of the insured is the payment of premium and the
representations made in the application
which of the following would qualify as a competent party in an insurance
contract?
a. the applicant is intoxicated at the time of application
b. the applicant is 12 year old student
c. the applicant is under the influence of a mind-impairing medication at the time
of application
d. the applicant has a prior felony conviction - ans -D. the applicant has a prior
felony conviction
when an insurer and insured enter into a contract, both parties must be legal of
age and mentally competent. It is legal for a person convicted of a felony to buy
an insurance contract. An intoxicated person, however, may not be mentally
competent, a 12 year old student is considered to be underage in most states and
a person under mind-impairing medication most likely would not be mentally
competent
an insurer neglects to pay a legitimate claim that is covered under the terms of
the policy. Which of the following insurance principles has the insurer violated?
a. representation
b. adhesion
c. consideration
d. good health - ans -C. consideration
the binding force in any contract is consideration. consideration on the part of the
insureds the payment of premiums and the health representations made in the
application. Consideration on the part of the insurer is the promise to pay in the
even of loss
which of the following is a primary source of information used for insurance
underwriting?
,a. application
b. applicant interviews
c. medical records.
d. private investigations - ans -A. application
the application contains most of the information used for underwriting purposes.
this is why its completeness and accurarcy are so critical
which of the following is the best reason to purchase life insurance rather than
annuities?
a. to liquidate a sum of money over a period of year
b. to create regular income payments
c. to liquidate a sum money over a lifetime
d. to create an estate - ans -D. to create an estate
with insurance, the death creates an immediate estate should the insured die
a producer is helping a married couple determine the financial needs of their
children in the event of one or both should die prematurely. This is a personal use
of life insurance known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning - ans -C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to
be able to maintain their lifestyle in the event of the insured's death. This is
known as survivor protection
a producer agent must do all of the following when delivering a new policy to the
insured EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
, d. explain the rating procedures if the policy is rated differently than applied for -
ans -A. disclose commissions earned fro the sale of the policy
a producer must explain policy provisions, exclusions, and riders at the time of the
delivery, as well as the rating procedures especially if the policy is rated
differently than applied for. The producer must also collect any due premium and
have the insured sign the statement go continued good health
if an applicant for a life insurance policy and person to be insured by the policy
are two different people, the underwriter would be concerned about
a. which individual will pay the premium
b. whether an insurable interest exists between the individuals
c. the gender of applicant
d. the type of policy requested - ans -B. whether an insurable interest exists
between the individuals
an insurable interest must exist at the time of the policy is issued. Some
relationships are automatically presumed to qualify as an insurable interest. ex:
spouses, parents, children, and certain business relationships
When J. applied for a life insurance policy, the agent informed him that a medical
exam would be required. The exam may be completed by
a. a physician of the applicant's choice and at his expense
b. a home office underwriter
c. a paramedic or examining physician at the insurer's expense
d. the agent - ans -C. a paramedic or examining physician at the insurer's expense
the applicant may be allowed to select the physician or paramedic facility to
perform the examination. The insurer pays the cost of such an examination
The factor added to the net premium to cover the costs of the insurer in obtaining
and maintaining the business is called
a. expenses
b. legal reserve
MOST TESTED EXAM COMPLETE QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) / ALREADY GRADED A+
which of the following insurers are owned by stockholders who have the usual
rights of ownership, including the right of voting?
a. reciprocal
b. fraternal
c. stock
d. mutual - ans -C. stock
only stock insurance companies are owned and controlled by stockholders
which of the following best describes the concept that the insured pays a small
amount of premium for a large amount of risk on the part of the insurance
company?
a. subrogation
b. warranty
c. aleatory
d. adhesion - ans -C. aleatory
an insurance contract is an aleatory contract in that it requires a relatively small
amount of premium for a large risk
When an insured makes truthful statements on the application for insurance and
pays the required premium, it is known as which of the following?
a. legal purpose
b. contract of adhesion
c. acceptance
d. consideration - ans -D. consideration
,consideration is something of value that each party gives to the other. The
consideration on the part of the insured is the payment of premium and the
representations made in the application
which of the following would qualify as a competent party in an insurance
contract?
a. the applicant is intoxicated at the time of application
b. the applicant is 12 year old student
c. the applicant is under the influence of a mind-impairing medication at the time
of application
d. the applicant has a prior felony conviction - ans -D. the applicant has a prior
felony conviction
when an insurer and insured enter into a contract, both parties must be legal of
age and mentally competent. It is legal for a person convicted of a felony to buy
an insurance contract. An intoxicated person, however, may not be mentally
competent, a 12 year old student is considered to be underage in most states and
a person under mind-impairing medication most likely would not be mentally
competent
an insurer neglects to pay a legitimate claim that is covered under the terms of
the policy. Which of the following insurance principles has the insurer violated?
a. representation
b. adhesion
c. consideration
d. good health - ans -C. consideration
the binding force in any contract is consideration. consideration on the part of the
insureds the payment of premiums and the health representations made in the
application. Consideration on the part of the insurer is the promise to pay in the
even of loss
which of the following is a primary source of information used for insurance
underwriting?
,a. application
b. applicant interviews
c. medical records.
d. private investigations - ans -A. application
the application contains most of the information used for underwriting purposes.
this is why its completeness and accurarcy are so critical
which of the following is the best reason to purchase life insurance rather than
annuities?
a. to liquidate a sum of money over a period of year
b. to create regular income payments
c. to liquidate a sum money over a lifetime
d. to create an estate - ans -D. to create an estate
with insurance, the death creates an immediate estate should the insured die
a producer is helping a married couple determine the financial needs of their
children in the event of one or both should die prematurely. This is a personal use
of life insurance known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning - ans -C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to
be able to maintain their lifestyle in the event of the insured's death. This is
known as survivor protection
a producer agent must do all of the following when delivering a new policy to the
insured EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
, d. explain the rating procedures if the policy is rated differently than applied for -
ans -A. disclose commissions earned fro the sale of the policy
a producer must explain policy provisions, exclusions, and riders at the time of the
delivery, as well as the rating procedures especially if the policy is rated
differently than applied for. The producer must also collect any due premium and
have the insured sign the statement go continued good health
if an applicant for a life insurance policy and person to be insured by the policy
are two different people, the underwriter would be concerned about
a. which individual will pay the premium
b. whether an insurable interest exists between the individuals
c. the gender of applicant
d. the type of policy requested - ans -B. whether an insurable interest exists
between the individuals
an insurable interest must exist at the time of the policy is issued. Some
relationships are automatically presumed to qualify as an insurable interest. ex:
spouses, parents, children, and certain business relationships
When J. applied for a life insurance policy, the agent informed him that a medical
exam would be required. The exam may be completed by
a. a physician of the applicant's choice and at his expense
b. a home office underwriter
c. a paramedic or examining physician at the insurer's expense
d. the agent - ans -C. a paramedic or examining physician at the insurer's expense
the applicant may be allowed to select the physician or paramedic facility to
perform the examination. The insurer pays the cost of such an examination
The factor added to the net premium to cover the costs of the insurer in obtaining
and maintaining the business is called
a. expenses
b. legal reserve
