PRIMERICA LIFE INSURANCE EXAM QUESTIONS
WITH DETAILED VERIFIED SOLUTIONS / A+ GRADE
ASSURED /2025
Terms in this set (194)
An insured purchased an A. mutual
insurance policy 5 years ago.
Last year, she received a funds not paid out after paying claims and other operating
dividend check from the costs are returned to the policy owners in the form of a
dividend. if all funds are paid out, no dividends are paid
insurance company that was
not taxable. This year, she did
not receive a check from the
insurer. From what type of
insurer did the insured
purchase the policy?
a. mutual
b. reciprocal
c. nonprofit
serviceorganization d. stock
,Following a career change, B. reduction
an insured is no longer
required to perform many the insured's change in lifestyle and habits would likely
physical activities, so he has reduce the chances of health problems
implemented a program
where he walks and jogs for
45 minutes each morning.
The insured has also
eliminated most fatty foods
from his diet. Which method
of dealing with risk does this
scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
A. an applicant submits an application to the insurer
In insurance, an offer is
usually made when in insurance, the offer is usually made by the applicant in
the form of an application. acceptance takes place when an
insurer's underwriter approves the application and issues a
a. an applicant submits policy
anapplication to the insurer
b. the insurer approves
theapplication and receives
the initial premium
c. the agent hands
thepolicy to the policyholder
d. an agent explains a policy
to a potential applicant
,the causes of loss insured A. perils
against in an insurance policy
are known as perils are the causes of loss insured against in an insurance
policy
a. perils
b. losses
c. risks
d. hazards
what documentation grants A. agents contract with the principal
express authority to an
agent? the principal grants authority to an agent through the agent's
contract
a. agents contract with
theprincipal
b. agents
insurancelicense
c. fiduciary contract
d. state provisions
which of the following best A. domestic
describes an insurance
a company is domestic when doing business within the
company that has been
state in which it is incorporated
formed under the laws of this
state?
a. domestic
b. sovereign
c. alien
d. foreign
, which of the following D. race
factors is NOT considered by
an underwriter when age, medical history, and sex provide sound statistical date for
determining the premium determining the probability of loss. Race, religion, sexual
orientation, etc. are the factors that cannot be used because
rates for an individual there is not sound statistical data to show that they effect the
seeking insurance? probability of loss; therefore, they are considered to be
discriminatory
a. medical history
b. sex
c. age
d. race
in insurance transactions, A. handling insurer funds in a trust capacity
fiduciary responsibility
means an agents fiduciary responsibility includes handling insurer
funds in a trust capacity
a. handling insurer
funds ina trust capacity
b. maintaining good
creditrecord
c. being liable
withrespect to payment of
claims
d. commingling
premiumswith agents
personal funds
B. express authority
the authority granted to an
agent through the agent's express powers are written into the contract between the
contract is referred to as insurer and the agent
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
WITH DETAILED VERIFIED SOLUTIONS / A+ GRADE
ASSURED /2025
Terms in this set (194)
An insured purchased an A. mutual
insurance policy 5 years ago.
Last year, she received a funds not paid out after paying claims and other operating
dividend check from the costs are returned to the policy owners in the form of a
dividend. if all funds are paid out, no dividends are paid
insurance company that was
not taxable. This year, she did
not receive a check from the
insurer. From what type of
insurer did the insured
purchase the policy?
a. mutual
b. reciprocal
c. nonprofit
serviceorganization d. stock
,Following a career change, B. reduction
an insured is no longer
required to perform many the insured's change in lifestyle and habits would likely
physical activities, so he has reduce the chances of health problems
implemented a program
where he walks and jogs for
45 minutes each morning.
The insured has also
eliminated most fatty foods
from his diet. Which method
of dealing with risk does this
scenario describe?
a. retention
b. reduction
c. transfer
d. avoidance
A. an applicant submits an application to the insurer
In insurance, an offer is
usually made when in insurance, the offer is usually made by the applicant in
the form of an application. acceptance takes place when an
insurer's underwriter approves the application and issues a
a. an applicant submits policy
anapplication to the insurer
b. the insurer approves
theapplication and receives
the initial premium
c. the agent hands
thepolicy to the policyholder
d. an agent explains a policy
to a potential applicant
,the causes of loss insured A. perils
against in an insurance policy
are known as perils are the causes of loss insured against in an insurance
policy
a. perils
b. losses
c. risks
d. hazards
what documentation grants A. agents contract with the principal
express authority to an
agent? the principal grants authority to an agent through the agent's
contract
a. agents contract with
theprincipal
b. agents
insurancelicense
c. fiduciary contract
d. state provisions
which of the following best A. domestic
describes an insurance
a company is domestic when doing business within the
company that has been
state in which it is incorporated
formed under the laws of this
state?
a. domestic
b. sovereign
c. alien
d. foreign
, which of the following D. race
factors is NOT considered by
an underwriter when age, medical history, and sex provide sound statistical date for
determining the premium determining the probability of loss. Race, religion, sexual
orientation, etc. are the factors that cannot be used because
rates for an individual there is not sound statistical data to show that they effect the
seeking insurance? probability of loss; therefore, they are considered to be
discriminatory
a. medical history
b. sex
c. age
d. race
in insurance transactions, A. handling insurer funds in a trust capacity
fiduciary responsibility
means an agents fiduciary responsibility includes handling insurer
funds in a trust capacity
a. handling insurer
funds ina trust capacity
b. maintaining good
creditrecord
c. being liable
withrespect to payment of
claims
d. commingling
premiumswith agents
personal funds
B. express authority
the authority granted to an
agent through the agent's express powers are written into the contract between the
contract is referred to as insurer and the agent
a. absolute authority
b. express authority
c. apparent authority
d. implied authority
