PRIMERICA LIFE INSURANCE FINAL
PAPER 2026 COMPLETE ANSWERS
GRADED A+
⩥ Partners in a business want to make sure that if. Answer: Buy-Sell
Agreement
⩥ Ten years ago an insured purchased a life insurance policy designed to
pay his family $500. Answer: Family income policy
⩥ An agent delivers a policy to an applicant who pays the initial
premium but refuses to submit. Answer: Consideration
⩥ Life settlement contracts are out into effect by which of the following.
Answer: An absolute assignment
⩥ A married couple wants to include the entire family in their whole life
policy under one rider. Which of. Answer: Family term
⩥ Among people in the same class and life expectancy, which of the
following factors can be used to influence premium rates?. Answer:
Occupation
,⩥ Which of the following NOT be eligible for coverage under key
person. Answer: The owner of the shop
⩥ An aleatory contract is based on what kind of exchange. Answer:
Unequal exchanges of values
⩥ Under what circumstances will the contingent beneficiary receive the
death benefit. Answer: If the primary beneficiary dies before the insured
⩥ Which of the following is NOT a component of an insurance policy
premium. Answer: Number of beneficiaries
⩥ A warranty may relate to which of the following. Answer: The past the
present and the future will
⩥ A college student will graduate next year. His studies have limited his
ability to work, so he has borrowed funds to pay for his education.
Answer: Modified whole life
⩥ A person has a history of DUIs. To his insurer, this presents what type
of hazard. Answer: Morale
⩥ Which of the following is not a type of hazard. Answer: Exposure
,⩥ An applicant for a disability insurance policy has a heart condition of
which they are unaware and therefore they answer no to the question
pertaining to heart problems on their application. Their answer is
considered to be a. Answer: Representation
⩥ Which of the following would be considered peril. Answer: Fire
⩥ Which of the following is NOT a standard exclusion in life insurance
policies. Answer: Disability
⩥ Joe, age 63, was disabled and can no longer work. He meets the
Social Security definition of total disability. How many work credits.
Answer: 40
⩥ To purchase insurance, The policy owner must face the possibility of
losing money or something of value in the event of loss. What is this
concept called?. Answer: Insurable interest
⩥ When the owner of a participating whole life policy uses the dividend
to provide more life insurance coverage, which of the following
dividend options is being used?. Answer: Paid up additions
⩥ When life insurance proceeds are used to pay inheritance taxes and
federal estate taxes, it is known as. Answer: Estate conservation
, ⩥ The entire contract includes all of the following EXCEPT. Answer: A
buyers guide
⩥ Concerning the Family Protection Policy, all of the following
statements are true EXCEPT. Answer: Children, upon reaching the age
of majority, are permitted to convert to an individual policy with proof
of insurability
⩥ An insured bought an insurance policy that requires him to pay $150
in premiums on the 15th of each month. He then takes an extended
vacation and forgets to pay the premium. Answer: Grace period
⩥ the purpose of the Fair Credit Reporting Act is to. Answer: Protect
consumers against the circulation of inaccurate or obsolete personal or
financial information
⩥ A life insurance policy qualifies a Modified Endowment Contract
(MEC) if the amount of premium paid exceeds the amount that would
have provided paid up insurance in how many years. Answer: 7 years
⩥ Which of the following will be eligible for a tax sheltered annuity.
Answer: Public school teachers
PAPER 2026 COMPLETE ANSWERS
GRADED A+
⩥ Partners in a business want to make sure that if. Answer: Buy-Sell
Agreement
⩥ Ten years ago an insured purchased a life insurance policy designed to
pay his family $500. Answer: Family income policy
⩥ An agent delivers a policy to an applicant who pays the initial
premium but refuses to submit. Answer: Consideration
⩥ Life settlement contracts are out into effect by which of the following.
Answer: An absolute assignment
⩥ A married couple wants to include the entire family in their whole life
policy under one rider. Which of. Answer: Family term
⩥ Among people in the same class and life expectancy, which of the
following factors can be used to influence premium rates?. Answer:
Occupation
,⩥ Which of the following NOT be eligible for coverage under key
person. Answer: The owner of the shop
⩥ An aleatory contract is based on what kind of exchange. Answer:
Unequal exchanges of values
⩥ Under what circumstances will the contingent beneficiary receive the
death benefit. Answer: If the primary beneficiary dies before the insured
⩥ Which of the following is NOT a component of an insurance policy
premium. Answer: Number of beneficiaries
⩥ A warranty may relate to which of the following. Answer: The past the
present and the future will
⩥ A college student will graduate next year. His studies have limited his
ability to work, so he has borrowed funds to pay for his education.
Answer: Modified whole life
⩥ A person has a history of DUIs. To his insurer, this presents what type
of hazard. Answer: Morale
⩥ Which of the following is not a type of hazard. Answer: Exposure
,⩥ An applicant for a disability insurance policy has a heart condition of
which they are unaware and therefore they answer no to the question
pertaining to heart problems on their application. Their answer is
considered to be a. Answer: Representation
⩥ Which of the following would be considered peril. Answer: Fire
⩥ Which of the following is NOT a standard exclusion in life insurance
policies. Answer: Disability
⩥ Joe, age 63, was disabled and can no longer work. He meets the
Social Security definition of total disability. How many work credits.
Answer: 40
⩥ To purchase insurance, The policy owner must face the possibility of
losing money or something of value in the event of loss. What is this
concept called?. Answer: Insurable interest
⩥ When the owner of a participating whole life policy uses the dividend
to provide more life insurance coverage, which of the following
dividend options is being used?. Answer: Paid up additions
⩥ When life insurance proceeds are used to pay inheritance taxes and
federal estate taxes, it is known as. Answer: Estate conservation
, ⩥ The entire contract includes all of the following EXCEPT. Answer: A
buyers guide
⩥ Concerning the Family Protection Policy, all of the following
statements are true EXCEPT. Answer: Children, upon reaching the age
of majority, are permitted to convert to an individual policy with proof
of insurability
⩥ An insured bought an insurance policy that requires him to pay $150
in premiums on the 15th of each month. He then takes an extended
vacation and forgets to pay the premium. Answer: Grace period
⩥ the purpose of the Fair Credit Reporting Act is to. Answer: Protect
consumers against the circulation of inaccurate or obsolete personal or
financial information
⩥ A life insurance policy qualifies a Modified Endowment Contract
(MEC) if the amount of premium paid exceeds the amount that would
have provided paid up insurance in how many years. Answer: 7 years
⩥ Which of the following will be eligible for a tax sheltered annuity.
Answer: Public school teachers
