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Primerica Practice Test Questions with Detailed Verified
Answers
The receipt given to a life insurance applicant when the application is completed and the initial
premium is received is called a(n) Ans: ✓ ✓ ✓ conditional receipt
Statements in the application for insurance that are believed to be true to the best of the
applicant's knowledge are called Ans: ✓ ✓ ✓ representations
An annuity is considered fixed when it does all of the following EXCEPT Ans: ✓ ✓ ✓ provides the
annuitant with an interest rate that is the lesser of the guaranteed or current rate
The most common type of whole life insurance where premiums are payable over the whole life of
the insured to age 100 is called Ans: ✓ ✓ ✓ continuous premium (straight) life
The policy and a copy of the application, along with any riders and amendments, is called the Ans:
✓ ✓ ✓ entire contract
Money borrowed from the policy's cash value is Ans: ✓ ✓ ✓ not taxable
Which of the following annuity products requires an agent to hold a securities license? Ans: ✓ ✓ ✓
variable annuities
Which type of annuity settlement stops when the annuitant dies? Ans: ✓ ✓ ✓ life income annuity
At what age can a participant receive distributions from a qualified plan without incurring a 10%
penalty? Ans: ✓ ✓ ✓ 59.5
Which settlement option guarantees an income for 2 or more recipients for as long as they live
Ans: ✓ ✓ ✓ joint and survivor
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the surviving partner to use the death benefit to purchase the deceased's
business interests? Ans: ✓ ✓ ✓ buy-sell agreement
© Get it right 2025 Getaway - Stuvia US All rights reserved
Primerica Practice Test Questions with Detailed Verified
Answers
The receipt given to a life insurance applicant when the application is completed and the initial
premium is received is called a(n) Ans: ✓ ✓ ✓ conditional receipt
Statements in the application for insurance that are believed to be true to the best of the
applicant's knowledge are called Ans: ✓ ✓ ✓ representations
An annuity is considered fixed when it does all of the following EXCEPT Ans: ✓ ✓ ✓ provides the
annuitant with an interest rate that is the lesser of the guaranteed or current rate
The most common type of whole life insurance where premiums are payable over the whole life of
the insured to age 100 is called Ans: ✓ ✓ ✓ continuous premium (straight) life
The policy and a copy of the application, along with any riders and amendments, is called the Ans:
✓ ✓ ✓ entire contract
Money borrowed from the policy's cash value is Ans: ✓ ✓ ✓ not taxable
Which of the following annuity products requires an agent to hold a securities license? Ans: ✓ ✓ ✓
variable annuities
Which type of annuity settlement stops when the annuitant dies? Ans: ✓ ✓ ✓ life income annuity
At what age can a participant receive distributions from a qualified plan without incurring a 10%
penalty? Ans: ✓ ✓ ✓ 59.5
Which settlement option guarantees an income for 2 or more recipients for as long as they live
Ans: ✓ ✓ ✓ joint and survivor
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the surviving partner to use the death benefit to purchase the deceased's
business interests? Ans: ✓ ✓ ✓ buy-sell agreement
© Get it right 2025 Getaway - Stuvia US All rights reserved
