Primerica Life Insurance Exam Practice i,- i,- i,- i,- i,-
Questions with Verified Answers | 100% i,- i,- i,- i,- i,- i,-
Correct| Latest 2025/2026 Update. i,- i,- i,-
When a whole life policy is surrendered for its nonforfeiture value,
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what is the automatic option?
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1)Paid up additions
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2)Cash surrender valuei,- i,-
3)Reduced paid up i,- i,-
4)Extended term i,- i,-i,- i,- Extended term i,-
Variable life insurance is regulated by all of the following entities
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EXCEPT
1)The Financial Industry Regulatory Authority (FINRA)
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2)The U.S Department of Treasury
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3)The Securities and Exchange Commission (SEC)
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4)The Department of Insurance and/or Financial Services
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U.S Department of Treasury
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,How do premiums in variable universal life policies vary from
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those in variable whole life policies?
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1)Premiums automatically increase over the life of the policy
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2)Premiums are flexible i,- i,-
3)Premiums are level i,- i,-
4)Premiums automatically decrease over the life of the policy
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Premiums are flexible i,- i,-
Policy loan requests, except for loan requests for payment of due
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premiums, may be deferred for a period of up to
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1)30 Daysi,-
2)90 Daysi,-
3)6 months
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4)9 months
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What is the maximum loan amount a policyowner may withdraw
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from a variable universal life insurance policy?
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1)Nothing; loans are not allowed under variable universal life
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2)An amount equal to the first year of premium payments
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3)An amount not exceeding the cash value
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,4)An amount up to the face amount of the policy
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-i,- i,- An amount
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not exceeding the cash value
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An IRA contribution can be made from which of the following?
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1)Stocks and bonds i,- i,-
2)Cash
3)Life insurance i,-
4)Collectibles i,-i,- i,- Cash
At what point would an automatic premium loan be generated?
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1)Once the policy is delivered i,- i,- i,- i,-
2)Upon the surrender of the policy i,- i,- i,- i,- i,-
3)Following the grace period i,- i,- i,-
4)Upon the insured's death i,- i,- i,- i,-i,- i,- Following the grace period i,- i,- i,-
For a contract to be enforceable by law, the purpose of the
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contract must be i,- i,-
1) For the benefit of the general public
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2)Of pure intent i,- i,-
3)Legal and not against public policy i,- i,- i,- i,- i,-
4)For financial gain i,- i,- i,-i,- i,- Legal and not against public policy
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, Which of the following indicates the person upon whose life the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
annuity income amount is determined?
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1)Owner
2)Insured
3)Annuitant
4)Beneficiary i,-i,- i,- Annuitant
Because of an injury, an insured has been unable to work for 7
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months. He wasn't able to pay his life insurance policy premium,
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yet the policy remained in force. The policy includes
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1)Guaranteed insurability benefits i,- i,-
2)Facility of payment clause i,- i,- i,-
3)Nonforfeiture options i,-
4)Waiver of premium rider i,- i,- i,- i,-i,- i,- Waiver of premium rider i,- i,- i,-
Contributions to Roth IRAs are i,- i,- i,- i,-
1)Always subject to a 6% tax penalty i,- i,- i,- i,- i,- i,-
2)Paid with pre-tax dollars
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3)Not tax deductible
i,- i,-
4)Tax deductible
i,- i,-i,- i,- Not tax deductible i,- i,-
Questions with Verified Answers | 100% i,- i,- i,- i,- i,- i,-
Correct| Latest 2025/2026 Update. i,- i,- i,-
When a whole life policy is surrendered for its nonforfeiture value,
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what is the automatic option?
i,- i,- i,- i,-
1)Paid up additions
i,- i,-
2)Cash surrender valuei,- i,-
3)Reduced paid up i,- i,-
4)Extended term i,- i,-i,- i,- Extended term i,-
Variable life insurance is regulated by all of the following entities
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
EXCEPT
1)The Financial Industry Regulatory Authority (FINRA)
i,- i,- i,- i,- i,-
2)The U.S Department of Treasury
i,- i,- i,- i,-
3)The Securities and Exchange Commission (SEC)
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4)The Department of Insurance and/or Financial Services
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U.S Department of Treasury
i,- i,- i,-
,How do premiums in variable universal life policies vary from
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those in variable whole life policies?
i,- i,- i,- i,- i,-
1)Premiums automatically increase over the life of the policy
i,- i,- i,- i,- i,- i,- i,- i,-
2)Premiums are flexible i,- i,-
3)Premiums are level i,- i,-
4)Premiums automatically decrease over the life of the policy
i,- i,- i,- i,- i,- i,- i,- i,- i,-i,- i,-
Premiums are flexible i,- i,-
Policy loan requests, except for loan requests for payment of due
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
premiums, may be deferred for a period of up to
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1)30 Daysi,-
2)90 Daysi,-
3)6 months
i,-
4)9 months
i,- i,-i,- i,- 6 monthsi,-
What is the maximum loan amount a policyowner may withdraw
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from a variable universal life insurance policy?
i,- i,- i,- i,- i,- i,-
1)Nothing; loans are not allowed under variable universal life
i,- i,- i,- i,- i,- i,- i,- i,-
2)An amount equal to the first year of premium payments
i,- i,- i,- i,- i,- i,- i,- i,- i,-
3)An amount not exceeding the cash value
i,- i,- i,- i,- i,- i,-
,4)An amount up to the face amount of the policy
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-i,- i,- An amount
i,- i,-
not exceeding the cash value
i,- i,- i,- i,-
An IRA contribution can be made from which of the following?
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
1)Stocks and bonds i,- i,-
2)Cash
3)Life insurance i,-
4)Collectibles i,-i,- i,- Cash
At what point would an automatic premium loan be generated?
i,- i,- i,- i,- i,- i,- i,- i,- i,-
1)Once the policy is delivered i,- i,- i,- i,-
2)Upon the surrender of the policy i,- i,- i,- i,- i,-
3)Following the grace period i,- i,- i,-
4)Upon the insured's death i,- i,- i,- i,-i,- i,- Following the grace period i,- i,- i,-
For a contract to be enforceable by law, the purpose of the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
contract must be i,- i,-
1) For the benefit of the general public
i,- i,- i,- i,- i,- i,- i,-
2)Of pure intent i,- i,-
3)Legal and not against public policy i,- i,- i,- i,- i,-
4)For financial gain i,- i,- i,-i,- i,- Legal and not against public policy
i,- i,- i,- i,- i,-
, Which of the following indicates the person upon whose life the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
annuity income amount is determined?
i,- i,- i,- i,-
1)Owner
2)Insured
3)Annuitant
4)Beneficiary i,-i,- i,- Annuitant
Because of an injury, an insured has been unable to work for 7
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
months. He wasn't able to pay his life insurance policy premium,
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-
yet the policy remained in force. The policy includes
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1)Guaranteed insurability benefits i,- i,-
2)Facility of payment clause i,- i,- i,-
3)Nonforfeiture options i,-
4)Waiver of premium rider i,- i,- i,- i,-i,- i,- Waiver of premium rider i,- i,- i,-
Contributions to Roth IRAs are i,- i,- i,- i,-
1)Always subject to a 6% tax penalty i,- i,- i,- i,- i,- i,-
2)Paid with pre-tax dollars
i,- i,- i,-
3)Not tax deductible
i,- i,-
4)Tax deductible
i,- i,-i,- i,- Not tax deductible i,- i,-
