PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
An insured purchased an insurance policy 5 years ago. Last year, she
received a dividend check from the insurance company that was
not taxable. This year, she did not receive a check from the insurer.
From what type of insurer did the insured purchase the policy?
a. mutual
b. reciprocal
c. nonprofit service organization
d. stock - - -
correct answer ✅A. mutual
funds not paid out after paying claims and other operating costs are
returned to the policy owners in the form of a dividend. if all funds
are paid out, no dividends are paid
Following a career change, an insured is no longer required to
perform many physical activities, so he has implemented a program
where he walks and jogs for 45 minutes each morning. The insured
has also eliminated most fatty foods from his diet. Which method
of dealing with risk does this scenario describe?
a. retention
,PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
b. reduction
c. transfer
d. avoidance - - -
correct answer ✅B. reduction
the insured's change in lifestyle and habits would likely reduce the
chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial
premium
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant - - -
correct answer ✅A. an applicant submits an application to the
insurer
in insurance, the offer is usually made by the applicant in the form
of an application. acceptance takes place when an insurer's
underwriter approves the application and issues a policy
,PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
the causes of loss insured against in an insurance policy are known
as
a. perils
b. losses
c. risks
d. hazards - - -
correct answer ✅A. perils
perils are the causes of loss insured against in an insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions - - -
correct answer ✅A. agents contract with the principal
, PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
the principal grants authority to an agent through the agent's
contract
which of the following best describes an insurance company that
has been formed under the laws of this state?
a. domestic
b. sovereign
c. alien
d. foreign - - -
correct answer ✅A. domestic
a company is domestic when doing business within the state in
which it is incorporated
which of the following factors is NOT considered by an underwriter
when determining the premium rates for an individual seeking
insurance?
a. medical history
b. sex
QUESTIONS AND ANSWERS
An insured purchased an insurance policy 5 years ago. Last year, she
received a dividend check from the insurance company that was
not taxable. This year, she did not receive a check from the insurer.
From what type of insurer did the insured purchase the policy?
a. mutual
b. reciprocal
c. nonprofit service organization
d. stock - - -
correct answer ✅A. mutual
funds not paid out after paying claims and other operating costs are
returned to the policy owners in the form of a dividend. if all funds
are paid out, no dividends are paid
Following a career change, an insured is no longer required to
perform many physical activities, so he has implemented a program
where he walks and jogs for 45 minutes each morning. The insured
has also eliminated most fatty foods from his diet. Which method
of dealing with risk does this scenario describe?
a. retention
,PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
b. reduction
c. transfer
d. avoidance - - -
correct answer ✅B. reduction
the insured's change in lifestyle and habits would likely reduce the
chances of health problems
In insurance, an offer is usually made when
a. an applicant submits an application to the insurer
b. the insurer approves the application and receives the initial
premium
c. the agent hands the policy to the policyholder
d. an agent explains a policy to a potential applicant - - -
correct answer ✅A. an applicant submits an application to the
insurer
in insurance, the offer is usually made by the applicant in the form
of an application. acceptance takes place when an insurer's
underwriter approves the application and issues a policy
,PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
the causes of loss insured against in an insurance policy are known
as
a. perils
b. losses
c. risks
d. hazards - - -
correct answer ✅A. perils
perils are the causes of loss insured against in an insurance policy
what documentation grants express authority to an agent?
a. agents contract with the principal
b. agents insurance license
c. fiduciary contract
d. state provisions - - -
correct answer ✅A. agents contract with the principal
, PRIMERICA LIFE INSURANCE EXAM
QUESTIONS AND ANSWERS
the principal grants authority to an agent through the agent's
contract
which of the following best describes an insurance company that
has been formed under the laws of this state?
a. domestic
b. sovereign
c. alien
d. foreign - - -
correct answer ✅A. domestic
a company is domestic when doing business within the state in
which it is incorporated
which of the following factors is NOT considered by an underwriter
when determining the premium rates for an individual seeking
insurance?
a. medical history
b. sex
