PRIMERICA LIFE INSURANCE EXAM
UPDATED COMPREHENSIVE TEST
BANK 2026 SOLVED QUESTIONS
WITH FULL SOLUTION 100%
CORRECT
◉ reduction.
Answer: The insured's change in lifestyle and habits would likely reduce
the chances of health problems.
◉ offer in insurance.
Answer: An applicant submits an application to the insurer; acceptance
takes place when an insurer's underwriter approves the application and
issues a policy.
◉ perils.
Answer: Perils are the causes of loss insured against in an insurance
policy.
◉ express authority.
Answer: Express powers are written into the contract between the
insurer and the agent.
◉ domestic.
,Answer: A company is domestic when doing business within the state in
which it is incorporated.
◉ discriminatory factors in underwriting.
Answer: Race, religion, sexual orientation, etc. are considered
discriminatory because there is not sound statistical data to show that
they affect the probability of loss.
◉ fiduciary responsibility.
Answer: An agent's fiduciary responsibility includes handling insurer
funds in a trust capacity.
◉ agents contract with the principal.
Answer: The principal grants authority to an agent through the agent's
contract.
◉ initial premium.
Answer: The insurer approves the application and receives the initial
premium.
◉ age in underwriting.
Answer: Age provides sound statistical data for determining the
probability of loss.
◉ medical history in underwriting.
,Answer: Medical history provides sound statistical data for determining
the probability of loss.
◉ sex in underwriting.
Answer: Sex provides sound statistical data for determining the
probability of loss.
◉ implied authority.
Answer: Authority that is not explicitly stated but is assumed to be
granted to an agent.
◉ apparent authority.
Answer: Authority that others believe an agent has based on the agent's
actions.
◉ losses.
Answer: Losses refer to the financial impact of perils covered by an
insurance policy.
◉ risks.
Answer: Risks refer to the uncertainty regarding financial loss.
◉ hazards.
Answer: Hazards are conditions that increase the likelihood of a peril
occurring.
, ◉ transfer.
Answer: A method of dealing with risk where the risk is shifted to
another party, typically through insurance.
◉ avoidance.
Answer: A method of dealing with risk where the risk is eliminated
entirely.
◉ retention.
Answer: A method of dealing with risk where the individual or
organization assumes the risk.
◉ adhesion.
Answer: a contract of adhesion is prepared by only the insurer; the
insured's only option is to accept or reject the policy as its written.
◉ stock insurance companies.
Answer: only stock insurance companies are owned and controlled by
stockholders.
◉ aleatory.
Answer: an insurance contract is an aleatory contract in that it requires a
relatively small amount of premium for a large risk.
UPDATED COMPREHENSIVE TEST
BANK 2026 SOLVED QUESTIONS
WITH FULL SOLUTION 100%
CORRECT
◉ reduction.
Answer: The insured's change in lifestyle and habits would likely reduce
the chances of health problems.
◉ offer in insurance.
Answer: An applicant submits an application to the insurer; acceptance
takes place when an insurer's underwriter approves the application and
issues a policy.
◉ perils.
Answer: Perils are the causes of loss insured against in an insurance
policy.
◉ express authority.
Answer: Express powers are written into the contract between the
insurer and the agent.
◉ domestic.
,Answer: A company is domestic when doing business within the state in
which it is incorporated.
◉ discriminatory factors in underwriting.
Answer: Race, religion, sexual orientation, etc. are considered
discriminatory because there is not sound statistical data to show that
they affect the probability of loss.
◉ fiduciary responsibility.
Answer: An agent's fiduciary responsibility includes handling insurer
funds in a trust capacity.
◉ agents contract with the principal.
Answer: The principal grants authority to an agent through the agent's
contract.
◉ initial premium.
Answer: The insurer approves the application and receives the initial
premium.
◉ age in underwriting.
Answer: Age provides sound statistical data for determining the
probability of loss.
◉ medical history in underwriting.
,Answer: Medical history provides sound statistical data for determining
the probability of loss.
◉ sex in underwriting.
Answer: Sex provides sound statistical data for determining the
probability of loss.
◉ implied authority.
Answer: Authority that is not explicitly stated but is assumed to be
granted to an agent.
◉ apparent authority.
Answer: Authority that others believe an agent has based on the agent's
actions.
◉ losses.
Answer: Losses refer to the financial impact of perils covered by an
insurance policy.
◉ risks.
Answer: Risks refer to the uncertainty regarding financial loss.
◉ hazards.
Answer: Hazards are conditions that increase the likelihood of a peril
occurring.
, ◉ transfer.
Answer: A method of dealing with risk where the risk is shifted to
another party, typically through insurance.
◉ avoidance.
Answer: A method of dealing with risk where the risk is eliminated
entirely.
◉ retention.
Answer: A method of dealing with risk where the individual or
organization assumes the risk.
◉ adhesion.
Answer: a contract of adhesion is prepared by only the insurer; the
insured's only option is to accept or reject the policy as its written.
◉ stock insurance companies.
Answer: only stock insurance companies are owned and controlled by
stockholders.
◉ aleatory.
Answer: an insurance contract is an aleatory contract in that it requires a
relatively small amount of premium for a large risk.
