MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
Primerica Exam Prep – Latest 2025 Test
Questions | Verified A+ Solutions
What required provision protects against unintentional lapse of the policy?
a) Payment of premiums
b) Reinstatement
c) Grace period
d) Assignment
Grace period
A life insurance policy has a legal purpose if both of which of the following elements exist?
a) Policyowners and named beneficiaries
b) Insurable interest and consent
c) Underwriting and reciprocity
d) Offer and counteroffer
Insurable interest and consent
A producer is helping a married couple determine the financial needs of their children in the event one
or both should die prematurely. This is a personal use of life insurance known as
a) Survivorship insurance
b) Juvenile protection provision
c) Survivor protection
d) Life planning
Survivor protection
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
In insurance policies, the insured is not legally bound to any particular action in the insurance contract,
but the insurer is legally obligated to pay losses covered by the policy. What contract element does this
describe?
a) Unidirectional
b) Aleatory
c) Conditional
d) Unilateral
Unilateral
An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time
that the insured concealed information during the application process. What can they do?
a) Sue for the right to not pay the death benefit
b) Pay the death benefit
c) Refuse to pay the death benefit because of the fraud
d) Pay a decreased death benefit
Pay the death benefit
In a direct rollover, how is the money transferred from one plan to the new one?
a) From trustee to the participant
b) From the participant to the new plan
c) From the original plan to the original custodian
d) From trustee to trustee
From trustee to trustee
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
Your client wants both protection and savings from the insurance, and is willing to pay premiums until
retirement at age 65. What would be the right policy for this client?
a) Life annuity with period certain
b) Increasing term
c) Limited pay whole life
d) Interest-sensitive whole life
Limited pay whole life
All of the following are TRUE regarding the convertibility option under a term life insurance policy
EXCEPT
a) Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
b) Evidence of insurability is not required.
c) Most term policies contain a convertibility option.
d) Upon conversion, the premium for the permanent policy will be based upon attained age.
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
A Return of Premium term life policy is written as what type of term coverage?
a) Renewable
b) Level
c) Increasing
d) Decreasing
Increasing
Employer contributions made to a qualified plan
a) Are subject to vesting requirements.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
b) May discriminate in favor of highly paid employees.
c) Are after-tax contributions.
d) Are taxed annually as salary.
Are subject to vesting requirements
Both Universal Life and Variable Universal Life have a
a) Flexible premium.
b) Level fixed premium.
c) Decreasing premium.
d) Increasing premium.
Flexible premium
An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date?
a) The date of policy delivery
b) The date of issue
c) The date of application
d) The date of medical exam
The date of medical exam
If an insured continually uses the automatic premium loan option to pay the policy premium,
a) The policy will terminate when the cash value is reduced to nothing.
b) The face amount of the policy will be reduced by the automatic premium loan amount.
c) The cash value will continue to increase.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
Primerica Exam Prep – Latest 2025 Test
Questions | Verified A+ Solutions
What required provision protects against unintentional lapse of the policy?
a) Payment of premiums
b) Reinstatement
c) Grace period
d) Assignment
Grace period
A life insurance policy has a legal purpose if both of which of the following elements exist?
a) Policyowners and named beneficiaries
b) Insurable interest and consent
c) Underwriting and reciprocity
d) Offer and counteroffer
Insurable interest and consent
A producer is helping a married couple determine the financial needs of their children in the event one
or both should die prematurely. This is a personal use of life insurance known as
a) Survivorship insurance
b) Juvenile protection provision
c) Survivor protection
d) Life planning
Survivor protection
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
In insurance policies, the insured is not legally bound to any particular action in the insurance contract,
but the insurer is legally obligated to pay losses covered by the policy. What contract element does this
describe?
a) Unidirectional
b) Aleatory
c) Conditional
d) Unilateral
Unilateral
An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time
that the insured concealed information during the application process. What can they do?
a) Sue for the right to not pay the death benefit
b) Pay the death benefit
c) Refuse to pay the death benefit because of the fraud
d) Pay a decreased death benefit
Pay the death benefit
In a direct rollover, how is the money transferred from one plan to the new one?
a) From trustee to the participant
b) From the participant to the new plan
c) From the original plan to the original custodian
d) From trustee to trustee
From trustee to trustee
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
Your client wants both protection and savings from the insurance, and is willing to pay premiums until
retirement at age 65. What would be the right policy for this client?
a) Life annuity with period certain
b) Increasing term
c) Limited pay whole life
d) Interest-sensitive whole life
Limited pay whole life
All of the following are TRUE regarding the convertibility option under a term life insurance policy
EXCEPT
a) Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
b) Evidence of insurability is not required.
c) Most term policies contain a convertibility option.
d) Upon conversion, the premium for the permanent policy will be based upon attained age.
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
A Return of Premium term life policy is written as what type of term coverage?
a) Renewable
b) Level
c) Increasing
d) Decreasing
Increasing
Employer contributions made to a qualified plan
a) Are subject to vesting requirements.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES | 2025 EDITION
b) May discriminate in favor of highly paid employees.
c) Are after-tax contributions.
d) Are taxed annually as salary.
Are subject to vesting requirements
Both Universal Life and Variable Universal Life have a
a) Flexible premium.
b) Level fixed premium.
c) Decreasing premium.
d) Increasing premium.
Flexible premium
An individual applied for an insurance policy and paid the initial premium. The insurer issued a
conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued,
what would be the policy's effective date?
a) The date of policy delivery
b) The date of issue
c) The date of application
d) The date of medical exam
The date of medical exam
If an insured continually uses the automatic premium loan option to pay the policy premium,
a) The policy will terminate when the cash value is reduced to nothing.
b) The face amount of the policy will be reduced by the automatic premium loan amount.
c) The cash value will continue to increase.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
