Primerica-Life Insurance 2025/2026
Exam Questions and Verified Answers |
Already Graded A+
Stranger-oriented life insurance policies are in direct opposition to the
principle of
a. law of large numbers
b. good faith
c. indemnity
d. insurable interest - 🧠ANSWER ✔✔d. insurable interest-STOLI purchaser
doesn't know the insured, or have any interest in the insured's longevity, so
it violates the principle of insurable interest
Which is generally true regarding insureds who have earned preferred
status?
,a. they keep a higher percentage of any interest earned on their policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums - 🧠ANSWER ✔✔b.
their premiums are lower- the insured is in excellent physical condition and
employs healthy lifestyles and habits
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
d. any type of insurance policy may be used. - 🧠ANSWER ✔✔c. the policy
is owned by the company.
An insured receives a monthly summary for his life insurance policy. He
notices that the cash value of the policy is significantly lower this month
than it was last month. What type of policy does the insured have?
a. variable
,b. term
c. securities
d. stock - 🧠ANSWER ✔✔a. variable- life policies vary in value, as the name
suggests, because the value is based on the stocks that support the policy.
If a policyholder wants a more stable, reliable value, he/she should invest in
a fixed policy.
When an employer offers to give an employee a wage increase in the
amount of the premium on a new life insurance policy, this is called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association - 🧠ANSWER ✔✔b. executive bonus
In terms of Social Security, what is the interval spanning between the day
when the youngest child of a family turns 16 and before the surviving
spouse may receive retirement benefits? - 🧠ANSWER ✔✔Blackout period-
begins when the youngest child reaches the age of 16, and ends when the
surviving spouse qualifies for retirement benefits, as early as age 60. No
benefits are paid during this time.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Life insurance may be used to pay state inheritance taxes and federal
estate taxes so that it is not necessary to sell off assets from the estate to
pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
d. survivorship insurnce - 🧠ANSWER ✔✔a. estate conservation- life
insurance may be used to pay state inheritance taxes and federal estate
taxes so that it is not necessary to sell off assets from the estate to pay
these costs. This is called estate conservation.
Which of the following applicants could the insurer charge a higher rate and
not be charge with unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that does not -
🧠ANSWER ✔✔d. an applicant that smokes cigarettes as opposed to one
that does not
Exam Questions and Verified Answers |
Already Graded A+
Stranger-oriented life insurance policies are in direct opposition to the
principle of
a. law of large numbers
b. good faith
c. indemnity
d. insurable interest - 🧠ANSWER ✔✔d. insurable interest-STOLI purchaser
doesn't know the insured, or have any interest in the insured's longevity, so
it violates the principle of insurable interest
Which is generally true regarding insureds who have earned preferred
status?
,a. they keep a higher percentage of any interest earned on their policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums - 🧠ANSWER ✔✔b.
their premiums are lower- the insured is in excellent physical condition and
employs healthy lifestyles and habits
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
d. any type of insurance policy may be used. - 🧠ANSWER ✔✔c. the policy
is owned by the company.
An insured receives a monthly summary for his life insurance policy. He
notices that the cash value of the policy is significantly lower this month
than it was last month. What type of policy does the insured have?
a. variable
,b. term
c. securities
d. stock - 🧠ANSWER ✔✔a. variable- life policies vary in value, as the name
suggests, because the value is based on the stocks that support the policy.
If a policyholder wants a more stable, reliable value, he/she should invest in
a fixed policy.
When an employer offers to give an employee a wage increase in the
amount of the premium on a new life insurance policy, this is called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association - 🧠ANSWER ✔✔b. executive bonus
In terms of Social Security, what is the interval spanning between the day
when the youngest child of a family turns 16 and before the surviving
spouse may receive retirement benefits? - 🧠ANSWER ✔✔Blackout period-
begins when the youngest child reaches the age of 16, and ends when the
surviving spouse qualifies for retirement benefits, as early as age 60. No
benefits are paid during this time.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Life insurance may be used to pay state inheritance taxes and federal
estate taxes so that it is not necessary to sell off assets from the estate to
pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
d. survivorship insurnce - 🧠ANSWER ✔✔a. estate conservation- life
insurance may be used to pay state inheritance taxes and federal estate
taxes so that it is not necessary to sell off assets from the estate to pay
these costs. This is called estate conservation.
Which of the following applicants could the insurer charge a higher rate and
not be charge with unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that does not -
🧠ANSWER ✔✔d. an applicant that smokes cigarettes as opposed to one
that does not
