PRIMERICA LIFE INSURANCE EXAM, Questions and answers. 100% Verified. 2026/2027

PRIMERICA LIFE INSURANCE EXAM, Questions and answers. 100% Verified. 2026/2027

PRIMERICA LIFE INSURANCE EXAM

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check

from the 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 service organization

d. stock - ANS - A. mutual

funds not paid out after paying claims and other operating costs are returned to the policy owners

in the form of a dividend. if all funds are paid out, no dividends are paid

Following a career change, an insured is no longer required to perform many physical activities,

so he has 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 - ANS - B. reduction

the insured's change in lifestyle and habits would likely reduce the chances of health problems

In insurance, an offer is usually made when

a. an applicant submits an application to the insurer

b. the insurer approves the application and receives the initial premium

c. the agent hands the policy to the policyholder

d. an agent explains a policy to a potential applicant - ANS - A. an applicant submits an

application to the insurer

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 policy

the causes of loss insured against in an insurance policy are known as

a. perils

b. losses

c. risks

d. hazards - ANS - A. perils

perils are the causes of loss insured against in an insurance policy

what documentation grants express authority to an agent?

a. agents contract with the principal

b. agents insurance license

c. fiduciary contract

d. state provisions - ANS - A. agents contract with the principal

the principal grants authority to an agent through the agent's contract

which of the following best describes an insurance company that has been formed under the laws

of this state?

a. domestic

b. sovereign

c. alien

d. foreign - ANS - A. domestic

a company is domestic when doing business within the state in which it is incorporated

which of the following factors is NOT considered by an underwriter when determining the

premium rates for an individual seeking insurance?

a. medical history

b. sex

c. age

d. race - ANS - D. race

age, medical history, and sex provide sound statistical date for determining the probability of

loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is

not sound statistical data to show that they effect the probability of loss; therefore, they are

considered to be discriminatory

in insurance transactions, fiduciary responsibility means

a. handling insurer funds in a trust capacity

b. maintaining good credit record

c. being liable with respect to payment of claims

d. commingling premiums with agents personal funds - ANS - A. handling insurer funds in a

trust capacity

an agents fiduciary responsibility includes handling insurer funds in a trust capacity

the authority granted to an agent through the agent's contract is referred to as