PRIMERICA LIFE INSURANCE EXAM STUDY GUIDE LATEST 2026
UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS (2026/2027)
GRADE: A+|STATUS: GUARANTEED PASS
a whole life policy in which the cash value builds faster than a 7-pay whole life policy is a
a. modified endowment contract
b. universal life contract
c. immediate annuity contract
d. limited-pay contract - Answers -A. modified endowment contract
death benefits paid to a beneficiary are
a. taxed as ordinary income
b. subject to inheritance tax
c. subject to federal income tax
d. tax-free - Answers -D. tax-free
If the cash value exceeds the premiums paid in a whole life policy, what are the tax
consequences if the policy is surrendered?
a. the portion that exceeds the premiums paid is taxable
b. the total amount received when the policy is surrendered is taxable
c. the interest earned is taxable
d. the cash value is tax-free - Answers -A. the portion that exceeds the premiums paid is taxable
1|Page
,dividends paid by a participating life insurance policy are
a. taxed as long term capital gains
b. received tax-free
c. taxed as ordinary income
d. taxed as capital gains distributions - Answers -B. received tax-free
which of the following is not true about qualified retirement plans?
a. qualified plans received favorable tax treatment
b. contributions made by employers are tax deductible
c. qualified plans can only be offered to company officers
d. contributions accumulate tax free until paid out - Answers -C. qualified plans an only be
offered to company officers
all of the following will reduce the death benefit amount EXCEPT:
a. long term care
b. accelerated death benefits
c. waiver of premium
d. unpaid policy loans - Answers -C. waiver of premium
2|Page
,what does the viator receive when selling this policy to a vatical provider?
a.the full face amount of the policy
b. the death benefit minus the fees charged by the viatical provider
c. a percentage of the policy's face value
d. the cash surrender value of the policy - Answers -C. a percentage of the policy's face value
underwriting is a process of
a. selection and issue of policies
b. evaluation and classification of risks
c. selection, reporting and rejection of risks
d. risk selection and classification - Answers -D. risk selection and classification
a statement which is the absolute truth is
a. warranty
b. representation
c. misrepresentation
d. fraud - Answers -a. warranty
3|Page
, this document says that the coverage will be effective either on the date of the application or
the date of the application or the date of the medical exam, whichever occurs last
a. interim term receipt
b. physician receipt
c. conditional receipt
d. binding receipt - Answers -C. conditional receipt
which of the following statements describes an insurable interest?
a. the policy owner must expect to benefit from the insureds death
b. the policyowner must expect to suffer a loss when the insured dies
c. the beneficiary, by definition, has an insurable interest in the insured
d. the insured must have a personal or business relationship with the beneficiary - Answers -B.
the policywner must expect to suffer a loss when the insured dies
the statements made by an applicant on an application for life insurance are considered to be
a. warranties
b. affirmations
c. representations
d. declarations - Answers -C. representations
4|Page
UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS (2026/2027)
GRADE: A+|STATUS: GUARANTEED PASS
a whole life policy in which the cash value builds faster than a 7-pay whole life policy is a
a. modified endowment contract
b. universal life contract
c. immediate annuity contract
d. limited-pay contract - Answers -A. modified endowment contract
death benefits paid to a beneficiary are
a. taxed as ordinary income
b. subject to inheritance tax
c. subject to federal income tax
d. tax-free - Answers -D. tax-free
If the cash value exceeds the premiums paid in a whole life policy, what are the tax
consequences if the policy is surrendered?
a. the portion that exceeds the premiums paid is taxable
b. the total amount received when the policy is surrendered is taxable
c. the interest earned is taxable
d. the cash value is tax-free - Answers -A. the portion that exceeds the premiums paid is taxable
1|Page
,dividends paid by a participating life insurance policy are
a. taxed as long term capital gains
b. received tax-free
c. taxed as ordinary income
d. taxed as capital gains distributions - Answers -B. received tax-free
which of the following is not true about qualified retirement plans?
a. qualified plans received favorable tax treatment
b. contributions made by employers are tax deductible
c. qualified plans can only be offered to company officers
d. contributions accumulate tax free until paid out - Answers -C. qualified plans an only be
offered to company officers
all of the following will reduce the death benefit amount EXCEPT:
a. long term care
b. accelerated death benefits
c. waiver of premium
d. unpaid policy loans - Answers -C. waiver of premium
2|Page
,what does the viator receive when selling this policy to a vatical provider?
a.the full face amount of the policy
b. the death benefit minus the fees charged by the viatical provider
c. a percentage of the policy's face value
d. the cash surrender value of the policy - Answers -C. a percentage of the policy's face value
underwriting is a process of
a. selection and issue of policies
b. evaluation and classification of risks
c. selection, reporting and rejection of risks
d. risk selection and classification - Answers -D. risk selection and classification
a statement which is the absolute truth is
a. warranty
b. representation
c. misrepresentation
d. fraud - Answers -a. warranty
3|Page
, this document says that the coverage will be effective either on the date of the application or
the date of the application or the date of the medical exam, whichever occurs last
a. interim term receipt
b. physician receipt
c. conditional receipt
d. binding receipt - Answers -C. conditional receipt
which of the following statements describes an insurable interest?
a. the policy owner must expect to benefit from the insureds death
b. the policyowner must expect to suffer a loss when the insured dies
c. the beneficiary, by definition, has an insurable interest in the insured
d. the insured must have a personal or business relationship with the beneficiary - Answers -B.
the policywner must expect to suffer a loss when the insured dies
the statements made by an applicant on an application for life insurance are considered to be
a. warranties
b. affirmations
c. representations
d. declarations - Answers -C. representations
4|Page
