Latest Primerica Life Insurance Test 2025
With 300 Real Exam Prep Questions and
Correct Verified Answers | Primerica Life
Insurance Exam 2025 Test Bank (Newest!)
What limits the amount that a policyowner may borrow from a whole life
insurance policy?
a. cash value
b. premiums paid
c. amount stated in the policy
d. face amount
A. cash value
the amount available to the policyowner for a loan is the policy owner's cash value.
If there are any outstanding loans, that amount will be reduced by the amount of
the unpaid loans and interest
An insured receives an annual life insurance dividend check. What term best
describes this arrangement?
a. accumulation at interest
b. cash option
c. reduction of premium
d. annual dividend premium
B. cash option
the cash option allows, an insurer to send the policyholder an annual, nontaxable
dividend check
Rod wants to pay his initial life insurance premium in advance. Which of the
following best describes his situation?
a. Rod cannot pay his policy is advance; it is payable either when the agent
pg. 1
,delivers the policy or anytime during the first initial month
b. Rod can pay his premium as early as he wants, even with his application
c. Rod can pay his premium only after the policy has been issued, regardless of its
delivery status
d. Rod cannot pay his policy in advance; it is payable only when the agent delivers
the policy
b. Rod can pay his premium as early as he wants, even with his application-which
is stipulated by the Payment of Premium Clause
With a Straight Life policy, what happens if the insured lives to age 100?
a. the policy matures and the face value is paid to the beneficiary
b. the policy matures and the cash value is used to purchase a single premium
policy
c. the policy will stay in force until the insured's death
d. the policy matures and the cash value is paid to the insured.
d. the policy endows (matures) and the cash value, equal to the face amount, is
paid to the insured
an individual buys a flexible premium deferred life annuity with 20 year period
certain. What would his beneficiary receive if he died 5 years after beginning the
annuity phase?
a. payment for 15 years
b. payments for 20 years
c. payments for life
d. nothing
A. payments for 15 years
with any period certain, death of the annuitant within the state period will provide
payments to the beneficiary only for the remainder of the period certain
The form of life annuity which pays benefits throughout the lifetime of the
annuitant and also guarantees payment for a minimum number of years is called
a. joint life annuity
b. life income with period certain
pg. 2
,c. life income with refund
d. joint and survivorship
B. life income with period certain
if the annuitant dies before the period certain, the payments continue to a
beneficiary or the estate for the remainder of the period certain
Death benefits payable to a beneficiary under a life insurance policy are generally
a. subject to income taxation by the federal government
b. exempt from income taxation if under $7,000
c. exempt from income taxation if over $7,000
d. not subject to income taxation by the federal government
D. not subject to income taxation by the federal government
when premiums are paid with after tax dollars, the death benefit is generally not
subject to federal income taxation
in life insurance policies, cash value increases
a. are only taxed when the owner reaches age 65
b. grow tax deferred
c. are income taxable immediately
d. are taxed annually
B. grow tax deferred
generally life insurance cash values are only income taxed if the policy is
surrendered totally or partially and the cash value exceeds the premiums paid
a producer in another state wants to become a producer in Louisiana. The other
state gives the same privileges to Louisiana producers wanting to be licensed in
that state as it does to its own producers. Louisiana, therefore, extends the licensing
privileges to the prospective producer of the other state. What is this called?
a. fair exchange
b. controlled business
pg. 3
, c. subrogation
d. reciprocity
D. reciprocity
reciprocity occurs when the state in which the person resides accords the same
privilege to residents of Louisiana
A producer has been notified by the Commissioner to stop using an unapproved
trade name. How many days does the producer have to change the trade name
before facing a fine?
a. 5 business days
b. 10 days
c. 30 days
d. the name must be changed immediately
B. 10 days
a producer who contributes to use a unapproved trade name for 10 or more days
after being notified will face a fine of up to $5,000
a Louisiana insurance company ran and advertisement in June 2008. When could
the company discard the file on this document?
a. June 2013
b. June 2012
c. June 2011
d. June 2009
B. June 2012
in Louisiana, insurance companies are required to keep files of all advertisements
used for 4 years, or until he next examination by the Department
existing and replacing life insurers are required to keep copies of all summaries,
notices, and statements used in sales transactions until the conclusion of their next
examination by the insurance department, or for a period of at least
a. 1 year
pg. 4
With 300 Real Exam Prep Questions and
Correct Verified Answers | Primerica Life
Insurance Exam 2025 Test Bank (Newest!)
What limits the amount that a policyowner may borrow from a whole life
insurance policy?
a. cash value
b. premiums paid
c. amount stated in the policy
d. face amount
A. cash value
the amount available to the policyowner for a loan is the policy owner's cash value.
If there are any outstanding loans, that amount will be reduced by the amount of
the unpaid loans and interest
An insured receives an annual life insurance dividend check. What term best
describes this arrangement?
a. accumulation at interest
b. cash option
c. reduction of premium
d. annual dividend premium
B. cash option
the cash option allows, an insurer to send the policyholder an annual, nontaxable
dividend check
Rod wants to pay his initial life insurance premium in advance. Which of the
following best describes his situation?
a. Rod cannot pay his policy is advance; it is payable either when the agent
pg. 1
,delivers the policy or anytime during the first initial month
b. Rod can pay his premium as early as he wants, even with his application
c. Rod can pay his premium only after the policy has been issued, regardless of its
delivery status
d. Rod cannot pay his policy in advance; it is payable only when the agent delivers
the policy
b. Rod can pay his premium as early as he wants, even with his application-which
is stipulated by the Payment of Premium Clause
With a Straight Life policy, what happens if the insured lives to age 100?
a. the policy matures and the face value is paid to the beneficiary
b. the policy matures and the cash value is used to purchase a single premium
policy
c. the policy will stay in force until the insured's death
d. the policy matures and the cash value is paid to the insured.
d. the policy endows (matures) and the cash value, equal to the face amount, is
paid to the insured
an individual buys a flexible premium deferred life annuity with 20 year period
certain. What would his beneficiary receive if he died 5 years after beginning the
annuity phase?
a. payment for 15 years
b. payments for 20 years
c. payments for life
d. nothing
A. payments for 15 years
with any period certain, death of the annuitant within the state period will provide
payments to the beneficiary only for the remainder of the period certain
The form of life annuity which pays benefits throughout the lifetime of the
annuitant and also guarantees payment for a minimum number of years is called
a. joint life annuity
b. life income with period certain
pg. 2
,c. life income with refund
d. joint and survivorship
B. life income with period certain
if the annuitant dies before the period certain, the payments continue to a
beneficiary or the estate for the remainder of the period certain
Death benefits payable to a beneficiary under a life insurance policy are generally
a. subject to income taxation by the federal government
b. exempt from income taxation if under $7,000
c. exempt from income taxation if over $7,000
d. not subject to income taxation by the federal government
D. not subject to income taxation by the federal government
when premiums are paid with after tax dollars, the death benefit is generally not
subject to federal income taxation
in life insurance policies, cash value increases
a. are only taxed when the owner reaches age 65
b. grow tax deferred
c. are income taxable immediately
d. are taxed annually
B. grow tax deferred
generally life insurance cash values are only income taxed if the policy is
surrendered totally or partially and the cash value exceeds the premiums paid
a producer in another state wants to become a producer in Louisiana. The other
state gives the same privileges to Louisiana producers wanting to be licensed in
that state as it does to its own producers. Louisiana, therefore, extends the licensing
privileges to the prospective producer of the other state. What is this called?
a. fair exchange
b. controlled business
pg. 3
, c. subrogation
d. reciprocity
D. reciprocity
reciprocity occurs when the state in which the person resides accords the same
privilege to residents of Louisiana
A producer has been notified by the Commissioner to stop using an unapproved
trade name. How many days does the producer have to change the trade name
before facing a fine?
a. 5 business days
b. 10 days
c. 30 days
d. the name must be changed immediately
B. 10 days
a producer who contributes to use a unapproved trade name for 10 or more days
after being notified will face a fine of up to $5,000
a Louisiana insurance company ran and advertisement in June 2008. When could
the company discard the file on this document?
a. June 2013
b. June 2012
c. June 2011
d. June 2009
B. June 2012
in Louisiana, insurance companies are required to keep files of all advertisements
used for 4 years, or until he next examination by the Department
existing and replacing life insurers are required to keep copies of all summaries,
notices, and statements used in sales transactions until the conclusion of their next
examination by the insurance department, or for a period of at least
a. 1 year
pg. 4
