Primerica Life Insurance Exam Practice
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
a producer who fails to separate premium monies from his own personal funds is
guilty of ___ - 🧠 ANSWER ✔✔commingling
explanation: it is illegal for insurance producers to commingle premiums collected
from the applicants with their own personal funds.
What is a material misrepresentation? - 🧠 ANSWER ✔✔a statement that, if
discovered, would alter the underwriting decision of the insurance company
which insurance principle states that if a policy allows for greater compensation
then the financial loss incurred, the insured may only receive benefits for the
amount lost? - 🧠 ANSWER ✔✔indemnity
explanation: the principle of indemnity stipulates that the insured can only collect
for the amount of the loss even if the policy is written with greater benefit limits.
,For the reported losses of an insured group to become more likely to equal the
statistical probability of loss for their particular class, the insured group must
become - 🧠 ANSWER ✔✔larger
explanation: according to the law of large numbers, the larger a group becomes, the
easier it is to predict losses. Insurers use this law in order to predict certain types of
losses and set appropriate premiums.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant no later than - 🧠 ANSWER ✔✔With the policy.
explanation: If a life insurance policy contains a free-look period of at least 10
days, the buyer's guide can be delivered with the policy. If it doesn't, the buyer's
guide must be delivered prior to accepting the initial premium.
Who makes up the Medical Information Bureau? - 🧠 ANSWER ✔✔Insurers
explanation: The Medical Information Bureau is made up of insurers so the
companies can compare the information they have collected on a potential insured
with information other insurers may have discovered.
Whose responsibility is it to make certain that an application for insurance is filled
out completely and correctly? - 🧠 ANSWER ✔✔The producer
,explanation: It is the responsibility of the producer (agent) to make sure an
application for insurance is filled out completely and correctly.
Which of the following methods of calculating the amount of life insurance needed
takes into account the insured's wages, years until retirement, and inflation? - 🧠
ANSWER ✔✔Human life value approach (HLVA)
explanation: Human life value approach is determined by the loss of income that
would result with the death of the insured, after making adjustments for expenses,
inflation, etc.
Which of the following is correct concerning the taxation of premiums in a key-
person life insurance policy? - 🧠 ANSWER ✔✔Premiums are not tax deductible as
a business expense.
explanation: The business cannot take a tax deduction for the expense of the
premium. However, if the key employee dies, the benefits paid to the business are
usually received tax free.
Which of the following is a generic consumer publication that explains life
insurance in general terms in order to assist the applicant in the decision-making
process? - 🧠 ANSWER ✔✔Buyer's Guide
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, explanation: The Buyer's Guide is a consumer publication that explains life
insurance in general terms in order to assist the applicant in the decision-making
process. It is a generic guide that does not address the specific policy of the insurer,
instead explaining life insurance in a way that the average consumer can
understand.
Why should the producer personally deliver the policy when the first premium has
already been paid? - 🧠 ANSWER ✔✔To help the insured understand all aspects of
the contract
explanation: It is the producer's responsibility to make sure that the policy is
understood by the insured and all of their questions are satisfied, and the delivery
receipt is signed.
Mortality - Interest + Expense = - 🧠 ANSWER ✔✔Gross premium
explanation: If "mortality" represents the cost of insured mortality, "interest"
represents the interest earned by an insurer, and "expense" (or "loading")
represents company operating costs, then the interest is subtracted from the cost of
mortality, yielding the net premium, and the loading is added to the net premium to
yield the gross premium.
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
a producer who fails to separate premium monies from his own personal funds is
guilty of ___ - 🧠 ANSWER ✔✔commingling
explanation: it is illegal for insurance producers to commingle premiums collected
from the applicants with their own personal funds.
What is a material misrepresentation? - 🧠 ANSWER ✔✔a statement that, if
discovered, would alter the underwriting decision of the insurance company
which insurance principle states that if a policy allows for greater compensation
then the financial loss incurred, the insured may only receive benefits for the
amount lost? - 🧠 ANSWER ✔✔indemnity
explanation: the principle of indemnity stipulates that the insured can only collect
for the amount of the loss even if the policy is written with greater benefit limits.
,For the reported losses of an insured group to become more likely to equal the
statistical probability of loss for their particular class, the insured group must
become - 🧠 ANSWER ✔✔larger
explanation: according to the law of large numbers, the larger a group becomes, the
easier it is to predict losses. Insurers use this law in order to predict certain types of
losses and set appropriate premiums.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant no later than - 🧠 ANSWER ✔✔With the policy.
explanation: If a life insurance policy contains a free-look period of at least 10
days, the buyer's guide can be delivered with the policy. If it doesn't, the buyer's
guide must be delivered prior to accepting the initial premium.
Who makes up the Medical Information Bureau? - 🧠 ANSWER ✔✔Insurers
explanation: The Medical Information Bureau is made up of insurers so the
companies can compare the information they have collected on a potential insured
with information other insurers may have discovered.
Whose responsibility is it to make certain that an application for insurance is filled
out completely and correctly? - 🧠 ANSWER ✔✔The producer
,explanation: It is the responsibility of the producer (agent) to make sure an
application for insurance is filled out completely and correctly.
Which of the following methods of calculating the amount of life insurance needed
takes into account the insured's wages, years until retirement, and inflation? - 🧠
ANSWER ✔✔Human life value approach (HLVA)
explanation: Human life value approach is determined by the loss of income that
would result with the death of the insured, after making adjustments for expenses,
inflation, etc.
Which of the following is correct concerning the taxation of premiums in a key-
person life insurance policy? - 🧠 ANSWER ✔✔Premiums are not tax deductible as
a business expense.
explanation: The business cannot take a tax deduction for the expense of the
premium. However, if the key employee dies, the benefits paid to the business are
usually received tax free.
Which of the following is a generic consumer publication that explains life
insurance in general terms in order to assist the applicant in the decision-making
process? - 🧠 ANSWER ✔✔Buyer's Guide
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, explanation: The Buyer's Guide is a consumer publication that explains life
insurance in general terms in order to assist the applicant in the decision-making
process. It is a generic guide that does not address the specific policy of the insurer,
instead explaining life insurance in a way that the average consumer can
understand.
Why should the producer personally deliver the policy when the first premium has
already been paid? - 🧠 ANSWER ✔✔To help the insured understand all aspects of
the contract
explanation: It is the producer's responsibility to make sure that the policy is
understood by the insured and all of their questions are satisfied, and the delivery
receipt is signed.
Mortality - Interest + Expense = - 🧠 ANSWER ✔✔Gross premium
explanation: If "mortality" represents the cost of insured mortality, "interest"
represents the interest earned by an insurer, and "expense" (or "loading")
represents company operating costs, then the interest is subtracted from the cost of
mortality, yielding the net premium, and the loading is added to the net premium to
yield the gross premium.
