New Primerica Life Insurance Exam 2025 Test Bank 2 With
450 Exam Practice Questions and Correct Answers (100%
Correct Answers) | Primerica Life Insurance Test Prep Test
Bank Latest 2025 (Most Recent)
In a life settlement contract, whom does the life settlement broker represent?
a) The owner
b) The insurer
c) The beneficiary
d) The life settlement intermediary
The owner
Variable Life insurance is based on what kind of premium?
a) Decreasing
b) Graded
c) Level fixed
d) Increasing
Level fixed
An insured purchased a Life Insurance policy. The agent told him that depending
upon the company's investments and expense factors, the cash values could change
from those shown in the policy at issue time. The policy is a/an
a) Credit Life.
b) Annual Renewable Term.
c) Adjustable Life.
d) Interest-sensitive Whole Life.
Interest-sensitive Whole Life
An insured purchased a 10-year level term life policy that is guaranteed renewable
and convertible. What happens at the end of the 10-year term?
a) The insured must provide evidence of insurability to renew the policy.
b) The insured may only convert the policy to another term policy.
c) The insured may renew the policy for another 10 years at the same premium
rate.
pg. 1
,d) The insured may renew the policy for another 10 years, but at a higher premium
rate.
The insured may renew the policy for another 10 years, but at a higher premium
rate.
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to
a beneficiary, the premiums must be paid
a) Until the policyowner's age 65.
b) For 20 years.
c) Until the policyowner's age 100, when the policy matures.
d) For 20 years or until death, whichever occurs first.
For 20 years or until death, whichever occurs first.
What is the purpose of a fixed-period settlement option?
a) To provide a guaranteed income for life
b) To provide a guaranteed amount of money each month
c) To provide a guaranteed income for a certain amount of time
d) To settle the insurance company's liability
To provide a guaranteed income for a certain amount of time.
All of the following statements concerning an employer sponsored nonqualified
retirement plan are true EXCEPT
a) The employer can receive a current tax deduction for any contributions made to
the plan.
b) The plan is a legal method of accumulating money for retirement needs.
c) The plan can discriminate as to who may participate.
d) The plan is not approved for favorable tax treatment by the IRS.
The employer can receive a current tax deduction for any contributions made to the
plan
All other factors being equal, what would the premium be like in a survivorship
life policy as compared to the premium in a joint life policy?
a) As high
b) Half the amount
c) Lower
d) Higher
Lower
pg. 2
,The president of a company is starting an annuity and decides that his corporation
will be the annuitant. Which of the following statements is true?
a) The contract can be issued without an annuitant.
b) The annuitant must be a natural person.
c) A corporation can be an annuitant as long as it is also the owner.
d) A corporation can be an annuitant as long as the beneficiary is a natural person.
The annuitant must be a natural person
Which of the following statements is TRUE about a policy assignment?
a) It authorizes an agent to modify the policy.
b) It transfers rights of ownership from the owner to another person.
c) It is the same as a beneficiary designation.
d) It permits the beneficiary to designate the person to receive the benefits.
It transfers rights of ownership from the owner to another person
An individual has just borrowed $10,000 from his bank on a 5-year installment
loan requiring monthly payments. What type of life insurance policy would be best
suited to this situation?
a) Variable life
b) Universal life
c) Whole life
d) Decreasing term
Decreasing Term
What happens when a policy is surrendered for its cash value?
a) The policy can be reinstated by paying back all policy loans and premiums.
b) The policy can be converted to term coverage.
c) Coverage ends and the policy cannot be reinstated.
d) Coverage ends but the policy can be reinstated at any time.
Coverage ends and the policy cannot be reinstated
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
a) Either the amount paid into the plan or the cash value of the plan, whichever is
the lesser amount
b) Amount paid into the plan
c) Cash value of the plan
pg. 3
, d) Either the amount paid into the plan or the cash value of the plan, whichever is
the greater amount
Either the amount paid into the plan or the cash value of the plan, whichever is the
greater amount
An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash value,
which is currently $20,000. What would be the face amount of the new term
policy?
a) $20,000
b) $25,000
c) $50,000
d) The face amount will be determined by the insurer.
$50,000
Which of the following is NOT a term for the period of time during which the
annuitant or the beneficiary receives income?
a) Annuitization period
b) Pay-out period
c) Liquidation period
d) Depreciation period
Depreciation Period
What is the purpose of a conditional receipt?
a) It is intended to provide coverage on a date earlier than the date of the issuance
of the policy.
b) It guarantees the applicant that a policy will be issued in the amount applied for
in the application.
c) It serves as proof that the agent has determined the applicant to be fully
insurable for coverage by the insurance company.
d) It is given by the agent only to applicants who fully prepay all scheduled
premiums in advance of policy issue.
It is intended to provide coverage on a date earlier than the date of the issuance of
the policy
Which of the following statements is TRUE concerning irrevocable beneficiaries?
a) They can be changed only with the written consent of that beneficiary.
pg. 4
450 Exam Practice Questions and Correct Answers (100%
Correct Answers) | Primerica Life Insurance Test Prep Test
Bank Latest 2025 (Most Recent)
In a life settlement contract, whom does the life settlement broker represent?
a) The owner
b) The insurer
c) The beneficiary
d) The life settlement intermediary
The owner
Variable Life insurance is based on what kind of premium?
a) Decreasing
b) Graded
c) Level fixed
d) Increasing
Level fixed
An insured purchased a Life Insurance policy. The agent told him that depending
upon the company's investments and expense factors, the cash values could change
from those shown in the policy at issue time. The policy is a/an
a) Credit Life.
b) Annual Renewable Term.
c) Adjustable Life.
d) Interest-sensitive Whole Life.
Interest-sensitive Whole Life
An insured purchased a 10-year level term life policy that is guaranteed renewable
and convertible. What happens at the end of the 10-year term?
a) The insured must provide evidence of insurability to renew the policy.
b) The insured may only convert the policy to another term policy.
c) The insured may renew the policy for another 10 years at the same premium
rate.
pg. 1
,d) The insured may renew the policy for another 10 years, but at a higher premium
rate.
The insured may renew the policy for another 10 years, but at a higher premium
rate.
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to
a beneficiary, the premiums must be paid
a) Until the policyowner's age 65.
b) For 20 years.
c) Until the policyowner's age 100, when the policy matures.
d) For 20 years or until death, whichever occurs first.
For 20 years or until death, whichever occurs first.
What is the purpose of a fixed-period settlement option?
a) To provide a guaranteed income for life
b) To provide a guaranteed amount of money each month
c) To provide a guaranteed income for a certain amount of time
d) To settle the insurance company's liability
To provide a guaranteed income for a certain amount of time.
All of the following statements concerning an employer sponsored nonqualified
retirement plan are true EXCEPT
a) The employer can receive a current tax deduction for any contributions made to
the plan.
b) The plan is a legal method of accumulating money for retirement needs.
c) The plan can discriminate as to who may participate.
d) The plan is not approved for favorable tax treatment by the IRS.
The employer can receive a current tax deduction for any contributions made to the
plan
All other factors being equal, what would the premium be like in a survivorship
life policy as compared to the premium in a joint life policy?
a) As high
b) Half the amount
c) Lower
d) Higher
Lower
pg. 2
,The president of a company is starting an annuity and decides that his corporation
will be the annuitant. Which of the following statements is true?
a) The contract can be issued without an annuitant.
b) The annuitant must be a natural person.
c) A corporation can be an annuitant as long as it is also the owner.
d) A corporation can be an annuitant as long as the beneficiary is a natural person.
The annuitant must be a natural person
Which of the following statements is TRUE about a policy assignment?
a) It authorizes an agent to modify the policy.
b) It transfers rights of ownership from the owner to another person.
c) It is the same as a beneficiary designation.
d) It permits the beneficiary to designate the person to receive the benefits.
It transfers rights of ownership from the owner to another person
An individual has just borrowed $10,000 from his bank on a 5-year installment
loan requiring monthly payments. What type of life insurance policy would be best
suited to this situation?
a) Variable life
b) Universal life
c) Whole life
d) Decreasing term
Decreasing Term
What happens when a policy is surrendered for its cash value?
a) The policy can be reinstated by paying back all policy loans and premiums.
b) The policy can be converted to term coverage.
c) Coverage ends and the policy cannot be reinstated.
d) Coverage ends but the policy can be reinstated at any time.
Coverage ends and the policy cannot be reinstated
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
a) Either the amount paid into the plan or the cash value of the plan, whichever is
the lesser amount
b) Amount paid into the plan
c) Cash value of the plan
pg. 3
, d) Either the amount paid into the plan or the cash value of the plan, whichever is
the greater amount
Either the amount paid into the plan or the cash value of the plan, whichever is the
greater amount
An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash value,
which is currently $20,000. What would be the face amount of the new term
policy?
a) $20,000
b) $25,000
c) $50,000
d) The face amount will be determined by the insurer.
$50,000
Which of the following is NOT a term for the period of time during which the
annuitant or the beneficiary receives income?
a) Annuitization period
b) Pay-out period
c) Liquidation period
d) Depreciation period
Depreciation Period
What is the purpose of a conditional receipt?
a) It is intended to provide coverage on a date earlier than the date of the issuance
of the policy.
b) It guarantees the applicant that a policy will be issued in the amount applied for
in the application.
c) It serves as proof that the agent has determined the applicant to be fully
insurable for coverage by the insurance company.
d) It is given by the agent only to applicants who fully prepay all scheduled
premiums in advance of policy issue.
It is intended to provide coverage on a date earlier than the date of the issuance of
the policy
Which of the following statements is TRUE concerning irrevocable beneficiaries?
a) They can be changed only with the written consent of that beneficiary.
pg. 4
