Primerica Life Insurance All
Multiple Choices Questions
Latest 2025/2026 with Correct
Answers
1. Stranger-oriented life insurance policies are in direct opposition to
the principle of
a. law of large numbers
b. good faith
c. indemnity
d. insurable interest
- ANS - d. insurable interest-STOLI purchaser doesn't know
the insured, or have any interest in the insured's longevity, so
it violates the principle of insurable interest
2. Which is generally true regarding insureds who have earned
preferred status?
a. they keep a higher percentage of any interest earned on their
policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums
- ANS - b. their premiums are lower- the insured is in
excellent physical condition and employs healthy lifestyles
and habits
,3. All of the following statements concerning the use of life insurance
as an Executive Bonus are correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to
policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
d. any type of insurance policy may be used.
- ANS - c. the policy is owned by the company.
4. An insured receives a monthly summary for his life insurance
policy. He notices that the cash value of the policy is significantly
lower this month than it was last month. What type of policy does
the insured have?
a. variable
b. term
c. securities
d. stock
- ANS - a. variable- life policies vary in value, as the name
suggests, because the value is based on the stocks that
support the policy. If a policyholder wants a more stable,
reliable value, he/she should invest in a fixed policy.
5. When an employer offers to give an employee a wage increase in
the amount of the premium on a new life insurance policy, this is
called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association
- ANS - b. executive bonus
,6. In terms of Social Security, what is the interval spanning between
the day when the youngest child of a family turns 16 and before
the surviving spouse may receive retirement benefits?
- ANS - Blackout period- begins when the youngest child reaches
the age of 16, and ends when the surviving spouse qualifies for
retirement benefits, as early as age 60. No benefits are paid during
this time.
7. Life insurance may be used to pay state inheritance taxes and
federal estate taxes so that it is not necessary to sell off assets
from the estate to pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
d. survivorship insurnce
- ANS - a. estate conservation- life insurance may be used to
pay state inheritance taxes and federal estate taxes so that it
is not necessary to sell off assets from the estate to pay these
costs. This is called estate conservation.
8. Which of the following applicants could the insurer charge a higher
rate and not be charge with unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that
does not
- ANS - d. an applicant that smokes cigarettes as opposed to
one that does not
, 9. Partner A in a business buys a life insurance policy on Partner B to
protect herself against a financial loss if he should die. Two years
after the partnership is dissolved Partner B dies. Who will receive
the death benefit?
- ANS - Partner A
10. Which of the following is NOT a type of information that
needs to be gathered in order to determine the value of someone's
life when using the needs approach?
a. mortgages
b. expenses
c. estimated longevity
d. outstanding debt
- ANS - c. estimated longevity
11. An employee will be taxed on the cost of group life insurance
paid by the employer if the amount of coverage exceeds
a. $10,000
b. $15,000
c. $25,000
d. $50,000
- ANS - d. $50,000
12. Which of the following would NOT fall into the category of
costs associated with death?
a. final medical expenses of the insured
b. day to day expenses of maintaining the family
c. the expense of a vacation for surviving family members
Multiple Choices Questions
Latest 2025/2026 with Correct
Answers
1. Stranger-oriented life insurance policies are in direct opposition to
the principle of
a. law of large numbers
b. good faith
c. indemnity
d. insurable interest
- ANS - d. insurable interest-STOLI purchaser doesn't know
the insured, or have any interest in the insured's longevity, so
it violates the principle of insurable interest
2. Which is generally true regarding insureds who have earned
preferred status?
a. they keep a higher percentage of any interest earned on their
policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums
- ANS - b. their premiums are lower- the insured is in
excellent physical condition and employs healthy lifestyles
and habits
,3. All of the following statements concerning the use of life insurance
as an Executive Bonus are correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to
policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
d. any type of insurance policy may be used.
- ANS - c. the policy is owned by the company.
4. An insured receives a monthly summary for his life insurance
policy. He notices that the cash value of the policy is significantly
lower this month than it was last month. What type of policy does
the insured have?
a. variable
b. term
c. securities
d. stock
- ANS - a. variable- life policies vary in value, as the name
suggests, because the value is based on the stocks that
support the policy. If a policyholder wants a more stable,
reliable value, he/she should invest in a fixed policy.
5. When an employer offers to give an employee a wage increase in
the amount of the premium on a new life insurance policy, this is
called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association
- ANS - b. executive bonus
,6. In terms of Social Security, what is the interval spanning between
the day when the youngest child of a family turns 16 and before
the surviving spouse may receive retirement benefits?
- ANS - Blackout period- begins when the youngest child reaches
the age of 16, and ends when the surviving spouse qualifies for
retirement benefits, as early as age 60. No benefits are paid during
this time.
7. Life insurance may be used to pay state inheritance taxes and
federal estate taxes so that it is not necessary to sell off assets
from the estate to pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
d. survivorship insurnce
- ANS - a. estate conservation- life insurance may be used to
pay state inheritance taxes and federal estate taxes so that it
is not necessary to sell off assets from the estate to pay these
costs. This is called estate conservation.
8. Which of the following applicants could the insurer charge a higher
rate and not be charge with unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that
does not
- ANS - d. an applicant that smokes cigarettes as opposed to
one that does not
, 9. Partner A in a business buys a life insurance policy on Partner B to
protect herself against a financial loss if he should die. Two years
after the partnership is dissolved Partner B dies. Who will receive
the death benefit?
- ANS - Partner A
10. Which of the following is NOT a type of information that
needs to be gathered in order to determine the value of someone's
life when using the needs approach?
a. mortgages
b. expenses
c. estimated longevity
d. outstanding debt
- ANS - c. estimated longevity
11. An employee will be taxed on the cost of group life insurance
paid by the employer if the amount of coverage exceeds
a. $10,000
b. $15,000
c. $25,000
d. $50,000
- ANS - d. $50,000
12. Which of the following would NOT fall into the category of
costs associated with death?
a. final medical expenses of the insured
b. day to day expenses of maintaining the family
c. the expense of a vacation for surviving family members
