PRIMERICA LIFE INSURANCE REVISION EXAM 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔A company with an employee who could not be replaced without considerable
expense might consider buying a____________________ life insurance policy on that
individual - ✔✔key employee
✔✔With a Key Employee Life Insurance Policy, what rights does the Key Employee
have? - ✔✔None, Employer is Owner and Beneficiary
✔✔What is the legal document that defines who may buy a deceased partners share of
the business and for how much? - ✔✔Buy and Sell Agreement, a legal document. Can
be funded with Life Insurance
✔✔If Joe and Moe have a Cross Purchase Plan, are 50/50 owners, and the company is
valued at $200,000, how much insurance should each buy, and who is the Policy Owner
and the Insured? - ✔✔Joe, Owner, Moe insured, $100,000 / Moe, Owner, Joe insured,
$100,000
✔✔Two business partners own life insurance on each other. If one partner dies, which
of the following contracts will allow the surviving partner to use the death benefit to
purchase the deceased's business interests? - ✔✔A. Buy-Sell Agreement
B. Keyemployeelifeinsurance
C. Survivorshiplifeinsurance
D. Joint and Survivorship annuity
✔✔All the following would have an insurable interest in an insured EXCEPT: - ✔✔A.
Your spouse
B. Your child
C. Your mother
D. Your close friend
✔✔Who must sign the Application? Who can make changes to the Application? -
✔✔The agent (producer), applicant and the policyowner must sign the application. You
can never use white out to change an application, applicant must initial change. The
agent is the field underwriter.
✔✔What are the three parts of an application? - ✔✔General Information, medical
information and the agent's report.
✔✔What is the agent's responsibility as a field underwriter? - ✔✔Properly solicit
applicants, complete application, obtain
required signatures, collect initial premium, issue receipt and deliver the policy.
, ✔✔When does insurable interest have to exist? - ✔✔Time of Application, when the
agent and applicant complete the
application
✔✔Does the beneficiary have to have Insurable Interest? - ✔✔No
✔✔Statements made by an applicant that are true to the best of his/her knowledge. -
✔✔Representations
✔✔_____________ is a false statement given to the insurer with the intent to defraud. -
✔✔Misinterpretation
✔✔A _______________ is the literal or absolute truth - ✔✔warranty
✔✔What is it called when an applicant fails to disclose known material facts? -
✔✔Concealment
✔✔What is it called when someone deliberately conceals or misrepresents a material
truth on an application? - ✔✔Fraud
✔✔The basic source of information used in the company's risk selection process is the
_____________ - ✔✔application
✔✔Information received from the applicant's private physician is known as an
______________________ - ✔✔attending physicians report
✔✔A ______________ is completed by a paramedic or registered nurse for small
amounts of insurance and for
applicants with no prior medical concern. - ✔✔Paramedical report
✔✔The __________________________ receives and maintains medical information
from insurance companies.
Allows companies to compare information they have collected on potential insured.
Protects the company from
__________________. - ✔✔medical information bureau (MIB); adverse selection.
✔✔_______________________________ investigate a applicant's finances, character,
work, hobbies, and habits. Consumer
must be notified. ______________________ credit, employment records and public
sources. - ✔✔Investigative Consumer Reports; Consumer Reports
✔✔______________________ has to notify the applicant in writing 3 days prior to
conducting an investigative consumer report - ✔✔Insurance Company
QUESTIONS WITH ANSWERS RATED A+
✔✔A company with an employee who could not be replaced without considerable
expense might consider buying a____________________ life insurance policy on that
individual - ✔✔key employee
✔✔With a Key Employee Life Insurance Policy, what rights does the Key Employee
have? - ✔✔None, Employer is Owner and Beneficiary
✔✔What is the legal document that defines who may buy a deceased partners share of
the business and for how much? - ✔✔Buy and Sell Agreement, a legal document. Can
be funded with Life Insurance
✔✔If Joe and Moe have a Cross Purchase Plan, are 50/50 owners, and the company is
valued at $200,000, how much insurance should each buy, and who is the Policy Owner
and the Insured? - ✔✔Joe, Owner, Moe insured, $100,000 / Moe, Owner, Joe insured,
$100,000
✔✔Two business partners own life insurance on each other. If one partner dies, which
of the following contracts will allow the surviving partner to use the death benefit to
purchase the deceased's business interests? - ✔✔A. Buy-Sell Agreement
B. Keyemployeelifeinsurance
C. Survivorshiplifeinsurance
D. Joint and Survivorship annuity
✔✔All the following would have an insurable interest in an insured EXCEPT: - ✔✔A.
Your spouse
B. Your child
C. Your mother
D. Your close friend
✔✔Who must sign the Application? Who can make changes to the Application? -
✔✔The agent (producer), applicant and the policyowner must sign the application. You
can never use white out to change an application, applicant must initial change. The
agent is the field underwriter.
✔✔What are the three parts of an application? - ✔✔General Information, medical
information and the agent's report.
✔✔What is the agent's responsibility as a field underwriter? - ✔✔Properly solicit
applicants, complete application, obtain
required signatures, collect initial premium, issue receipt and deliver the policy.
, ✔✔When does insurable interest have to exist? - ✔✔Time of Application, when the
agent and applicant complete the
application
✔✔Does the beneficiary have to have Insurable Interest? - ✔✔No
✔✔Statements made by an applicant that are true to the best of his/her knowledge. -
✔✔Representations
✔✔_____________ is a false statement given to the insurer with the intent to defraud. -
✔✔Misinterpretation
✔✔A _______________ is the literal or absolute truth - ✔✔warranty
✔✔What is it called when an applicant fails to disclose known material facts? -
✔✔Concealment
✔✔What is it called when someone deliberately conceals or misrepresents a material
truth on an application? - ✔✔Fraud
✔✔The basic source of information used in the company's risk selection process is the
_____________ - ✔✔application
✔✔Information received from the applicant's private physician is known as an
______________________ - ✔✔attending physicians report
✔✔A ______________ is completed by a paramedic or registered nurse for small
amounts of insurance and for
applicants with no prior medical concern. - ✔✔Paramedical report
✔✔The __________________________ receives and maintains medical information
from insurance companies.
Allows companies to compare information they have collected on potential insured.
Protects the company from
__________________. - ✔✔medical information bureau (MIB); adverse selection.
✔✔_______________________________ investigate a applicant's finances, character,
work, hobbies, and habits. Consumer
must be notified. ______________________ credit, employment records and public
sources. - ✔✔Investigative Consumer Reports; Consumer Reports
✔✔______________________ has to notify the applicant in writing 3 days prior to
conducting an investigative consumer report - ✔✔Insurance Company
