PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
with any period certain, death of the annuitant within the state period will provide
payments to the beneficiary only for the remainder of the period certain
The form of life annuity which pays benefits throughout the lifetime of the annuitant and
also guarantees payment for a minimum number of years is called
a. joint life annuity
b. life income with period certain
c. life income with refund
d. joint and survivorship - -B. life income with period certain
if the annuitant dies before the period certain, the payments continue to a beneficiary or
the estate for the remainder of the period certain
the annuity purchased with multiple payments, whose benefit is paid more than one year
after the purchase is know as which type of annuity?
a.flexible premium immediate annuity
b. single premium deferred annuity
c. flexible premium deferred annuity
d. single premium immediate annuity - -C. flexible premium deferred annuity
the flexible premium deferred annuity (FPDA) is purchased with multiple payments, such
as a portion of each paycheck. The benefit payment begin sometime after a one year from
the date of purchase
which of the following will NOT be an appropriate use of a deferred annuity?
a. creating an estate
b. accumulating retirement funds
c. accumulating funds in an IRA
d. funding a child's college education - -A. creating an estate
, PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
which of the following products requires a securities license?
a. variable annuity
b. fixed annuity
c. equity indexed annuity
d. deferred annuity - -A. variable annuity
a variable annuity is considered to be a security and is regulated by the Securities
Exchange Commission (SEC) in addition to state regulations. For that reason, a person
must hold a securities license in addition to a life agent's license in order to sell variable
annuities
all of the following statements are true regarding installments for a fixed period annually
settlement option EXCEPT:
a. it will pay the benefit only for a designated period of time
b. the payments are not guaranteed for life
c. the insurer determines the amount for each payment
d. it is a life contingency option - -D. it is a life contingency option
under the installments for a fixed period annuity settlement option, the annuitant selects
the time period for the benefits; the insurer determines how much each payment will be.
This option for a specific amount of time only, and there are no life contingencies
What type of annuity can be purchased with a single premium and provides benefits
payments immediately?
a. fixed
b. immediate
c. single premium
d. deferred - -B. immediate
, PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
with an immediate annuity, distribution starts within 1 year of purchase
which of the following are NOT fundable by annuities?
a. death benefits
b. cash accumulation for any reason
c. a person's retirement
d. estate liquidation - -A. death benefits
annuities are most commonly used to fund a person's retirement, but they can technically
be used to accumulate cash for any reason. Annuities can also be used to liquidate an
estate. Annuities do not provide death benefits; those are provided by life insurance
which of the following is TRUE of a qualified plan?
a. it may allow unlimited contributions
b. it has a tax benefit for both employer and employee
c. it does not need to have a vesting schedule
d. it may discriminate in favor of highly paid employees - -B. it has a tax benefit for
both employer and employee
a qualified plan is approved by the IRS, which then gives both the employee and employer
benefits deductibility of contributions and tax deferral of growth
What is the tax consequence of amounts received from a Traditional IRA after the money
was left in the tax-deferred account by the beneficiary?
a. capital gains tax on distributions and no penalty
b. capital gains tax on distributions plus 10% penalty
c. income tax on distributions and no penalty
, PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
d. income tax on distributions plus 10% penalty - -C. income tax on distributions and
no penalty
if the beneficiary chooses to leave the money in the tax-deferred account until the calendar
year in which the power would have attained age 70 1/2 the distributions would be subject
to income taxation at the rate at the time of withdrawal
Death benefits payable to a beneficiary under a life insurance policy are generally
a. subject to income taxation by the federal government
b. exempt from income taxation if under $7,000
c. exempt from income taxation if over $7,000
d. not subject to income taxation by the federal government - -D. not subject to
income taxation by the federal government
when premiums are paid with after tax dollars, the death benefit is generally not subject to
federal income taxation
what is the main purpose of the Seven-pay test?
a. it requires level premium payments for 7 years
b. it ensures that the policy benefits are paid out in 7 years
c. it guarantees interest minimum
d. it determines if the insurance policy is an MEC - -d. it determines if the insurance
policy is an MEC
the seven pay test determines whether an insurance policy is "over funded" or if its a
modified endowment contract. In other words, the cumulative premiums paid during the
first seven years of a policy must not exceed the total amount of the net level premiums
that would be required to pay the policy up using guaranteed mortality costs and interest
if a company has a simplified employee pension plan, what type of plan is it?
CORRECT ANSWERS 2024/ 2025 | Part 2
with any period certain, death of the annuitant within the state period will provide
payments to the beneficiary only for the remainder of the period certain
The form of life annuity which pays benefits throughout the lifetime of the annuitant and
also guarantees payment for a minimum number of years is called
a. joint life annuity
b. life income with period certain
c. life income with refund
d. joint and survivorship - -B. life income with period certain
if the annuitant dies before the period certain, the payments continue to a beneficiary or
the estate for the remainder of the period certain
the annuity purchased with multiple payments, whose benefit is paid more than one year
after the purchase is know as which type of annuity?
a.flexible premium immediate annuity
b. single premium deferred annuity
c. flexible premium deferred annuity
d. single premium immediate annuity - -C. flexible premium deferred annuity
the flexible premium deferred annuity (FPDA) is purchased with multiple payments, such
as a portion of each paycheck. The benefit payment begin sometime after a one year from
the date of purchase
which of the following will NOT be an appropriate use of a deferred annuity?
a. creating an estate
b. accumulating retirement funds
c. accumulating funds in an IRA
d. funding a child's college education - -A. creating an estate
, PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
which of the following products requires a securities license?
a. variable annuity
b. fixed annuity
c. equity indexed annuity
d. deferred annuity - -A. variable annuity
a variable annuity is considered to be a security and is regulated by the Securities
Exchange Commission (SEC) in addition to state regulations. For that reason, a person
must hold a securities license in addition to a life agent's license in order to sell variable
annuities
all of the following statements are true regarding installments for a fixed period annually
settlement option EXCEPT:
a. it will pay the benefit only for a designated period of time
b. the payments are not guaranteed for life
c. the insurer determines the amount for each payment
d. it is a life contingency option - -D. it is a life contingency option
under the installments for a fixed period annuity settlement option, the annuitant selects
the time period for the benefits; the insurer determines how much each payment will be.
This option for a specific amount of time only, and there are no life contingencies
What type of annuity can be purchased with a single premium and provides benefits
payments immediately?
a. fixed
b. immediate
c. single premium
d. deferred - -B. immediate
, PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
with an immediate annuity, distribution starts within 1 year of purchase
which of the following are NOT fundable by annuities?
a. death benefits
b. cash accumulation for any reason
c. a person's retirement
d. estate liquidation - -A. death benefits
annuities are most commonly used to fund a person's retirement, but they can technically
be used to accumulate cash for any reason. Annuities can also be used to liquidate an
estate. Annuities do not provide death benefits; those are provided by life insurance
which of the following is TRUE of a qualified plan?
a. it may allow unlimited contributions
b. it has a tax benefit for both employer and employee
c. it does not need to have a vesting schedule
d. it may discriminate in favor of highly paid employees - -B. it has a tax benefit for
both employer and employee
a qualified plan is approved by the IRS, which then gives both the employee and employer
benefits deductibility of contributions and tax deferral of growth
What is the tax consequence of amounts received from a Traditional IRA after the money
was left in the tax-deferred account by the beneficiary?
a. capital gains tax on distributions and no penalty
b. capital gains tax on distributions plus 10% penalty
c. income tax on distributions and no penalty
, PRIMERICA LIFE INSURANCE EXAM WITH 100%
CORRECT ANSWERS 2024/ 2025 | Part 2
d. income tax on distributions plus 10% penalty - -C. income tax on distributions and
no penalty
if the beneficiary chooses to leave the money in the tax-deferred account until the calendar
year in which the power would have attained age 70 1/2 the distributions would be subject
to income taxation at the rate at the time of withdrawal
Death benefits payable to a beneficiary under a life insurance policy are generally
a. subject to income taxation by the federal government
b. exempt from income taxation if under $7,000
c. exempt from income taxation if over $7,000
d. not subject to income taxation by the federal government - -D. not subject to
income taxation by the federal government
when premiums are paid with after tax dollars, the death benefit is generally not subject to
federal income taxation
what is the main purpose of the Seven-pay test?
a. it requires level premium payments for 7 years
b. it ensures that the policy benefits are paid out in 7 years
c. it guarantees interest minimum
d. it determines if the insurance policy is an MEC - -d. it determines if the insurance
policy is an MEC
the seven pay test determines whether an insurance policy is "over funded" or if its a
modified endowment contract. In other words, the cumulative premiums paid during the
first seven years of a policy must not exceed the total amount of the net level premiums
that would be required to pay the policy up using guaranteed mortality costs and interest
if a company has a simplified employee pension plan, what type of plan is it?
