Primerica Life Insurance (New 2025/2026 Update) Actual Exam Test Bank| 200 Questions with Verified Answers | 100% Correct| Grade A.

Primerica Life Insurance (New i,- i,- i,- i,-




2025/2026 Update) Actual Exam Test i,- i,- i,- i,- i,-




Bank| 200 Questions with Verified i,- i,- i,- i,- i,-




Answers | 100% Correct| Grade A. i,- i,- i,- i,- i,-




In insurance, an offer is usually made when
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A. An applicant submits an application to the insurer
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B. The insurer approves the application and receives the initial
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premium
C. The agent hands the policy to the policyholder
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D. An agent explains a policy to a potential applicant
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applicant submits an application to the insurer
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A whole life policy in which the cash value builds faster than a 7-
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pay whole life policy is a
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A. Modified endowment contract
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B. Universal life contract
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C. Immediate annuity contract
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,D. Limited-pay contract
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Death benefits paid to a beneficiary are
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A. Taxed as ordinary income
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B. Subject to inheritance tax
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C. Subject to federal income tax
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D. Tax-free
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In insurance, the offer is usually made by the applicant in the
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form of an application. Acceptance takes place when an insurer's
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underwriter approves the application and issues a policy i,- i,- i,- i,- i,- i,- i,-




The causes of loss insured against in an insurance policy are
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known as i,-




A. Perils
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B. Losses
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C. Risks
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D. Hazards
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Perils are the causes of loss insured against in an insurance policy
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,What documentation grants express authority to an agent?
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A. Agents contract with the principal
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B. Agents insurance license
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C. Fiduciary contract
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D. State provisions
i,- i,- i,-i,- i,- A. Agents contract with the principal
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The principal grants authority to an agent through the agent's
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contract


Which of the following best describes an insurance company that
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has been formed under the laws of this state?
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A. Domestic
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B. Sovereign
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C. Alien
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D. Foreign
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A company is domestic when doing business within the state in
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which it is incorporated
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, Which of the following factors is NOT considered by an
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underwriter when determining the premium rates for an i,- i,- i,- i,- i,- i,- i,- i,-



individual seeking insurance? i,- i,-




A. Medical history
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B. Sex
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C. Age
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D. Race
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Age, medical history, and sex provide sound statistical date for
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determining the probability of loss. Race, religion, sexual i,- i,- i,- i,- i,- i,- i,- i,-



orientation, etc. Are the factors that cannot be used because
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there is not sound statistical data to show that they effect the
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probability of loss; therefore, they are considered to be
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discriminatory


In insurance transactions, fiduciary responsibility means
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A. Handling insurer funds in a trust capacity
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B. Maintaining good credit record
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C. Being liable with respect to payment of claims
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D. Commingling premiums with agents personal funds
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Handling insurer funds in a trust capacity
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