Primerica Life Insurance Practice Exam – All Questions

Browse all practice questions for the Primerica Life Insurance Practice Exam. Search by topic, open any question and review its full explanation, then test yourself in the practice quiz.

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Discover How Permanent Life Insurance Builds Cash ValueIn which type of insurance is cash value generally accumulated?Discover the Benefits of a Waiver of Premium Rider in Life InsuranceWhat is a "waiver of premium" rider in life insurance?Discovering the Payor Benefit Rider in Life InsuranceWhich rider provides for an owner other than the insured to benefit financially from a policy?Discovering Variable Life Insurance: Flexibility and Potential GrowthWhat is "variable life" insurance?Exploring Stock Redemption and Cross Purchase Plans in Life InsuranceWhat is the major difference between a Stock Redemption Plan and a Cross Purchase Plan?Exploring the Benefits of Life Insurance for Estate ConservationWhat is the primary benefit of life insurance for estate conservation?Exploring the Role of Insurers in the Medical Information BureauWho makes up the Medical Information Bureau?Exploring the Waiver of Premium Rider in Life InsuranceWhat is the name of the rider that allows a company to waive premium payments if the insured becomes disabled?How Insurable Interest Shapes Your Insurance ChoicesWhich of the following is a consequence of insurable interest?How Payor Benefit Helps Minors Maintain Life Insurance Coverage When Parents Are Disabled or DeceasedWhich provision relieves life insurance premium payment for minors whose parents have died or become disabled?How Quickly Must Insurers Respond to Investigative Consumer Report Requests?If a consumer requests information about an Investigative Consumer Report, how long does the insurer have to respond?Key Person Life Insurance: Understanding What It CoversWhich factor is NOT typically covered by Key Person Life Insurance?Reactivating a Lapsed Life Insurance Policy ExplainedWhat aspect does reactivating a lapsed policy typically involve?Reasons to Consider Replacing Your Life Insurance PolicyWhy might someone consider replacing their life insurance policy?Understanding Accelerated Benefits in Life Insurance PoliciesWhat are "accelerated benefits" in insurance policies?Understanding Aleatory Contracts in InsuranceWhat does the term "aleatory contract" refer to in insurance?Understanding Buy-Sell Agreements in Business InsuranceWhat is a "buy-sell agreement" in business insurance?Understanding Cash Value in Permanent Life Insurance PoliciesWhat does cash value in a permanent life insurance policy refer to?Understanding Final Expenses and Their Importance in Life Insurance PlanningWhat does "final expenses" refer to?Understanding How a Business Entity Owns Policies in a Stock Redemption PlanWhat entity typically owns policies in a Stock Redemption Plan?Understanding How Automatic Premium Loans Keep Your Whole Life Insurance ActiveA policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. What is this due to?Understanding How Life Insurance Premiums Are CalculatedHow is the premium for life insurance typically calculated?Understanding Insurance Trusts and Their BenefitsWhat defines an "insurance trust"?Understanding Key Person Insurance and Its Importance for Your BusinessWhat is the primary purpose of key person insurance?Understanding Life Insurance Dividends: What You Need to KnowAll statements concerning dividends are true EXCEPT which one?Understanding Life Settlements and Their Role in Business InsuranceWhat type of insurance can be classified as involving policies with large face amounts, often initiated for business purposes?Understanding Mortality Risk in Life InsuranceDefine "mortality risk".Understanding Personal Life Insurance and Its BenefitsWhat is "personal life insurance"?Understanding Renewable Term Life Insurance and Its BenefitsWhat is "renewable term" life insurance?Understanding Risk Classification in Life InsuranceDefine "risk classification" in the context of life insurance.Understanding Scenarios for Key Person InsuranceWhich of these scenarios does not typically involve "key person insurance"?Understanding Solvency in Life Insurance: What It Really MeansWhich of the following best describes "solvency" in the context of life insurance?Understanding Standard Risk Classification in Life InsuranceWhich statement is correct regarding standard risk classification for individuals in the same age group and with similar lifestyles?Understanding the Death Benefit in Life InsuranceWhat does the term "death benefit" in life insurance mean?Understanding the Death Benefit When Information is ConcealedWhat happens if an insured who concealed information dies within 2 years of purchasing a policy?Understanding the Difference Between a Beneficiary and an Insured in Life InsuranceHow does a beneficiary differ from an insured in a life insurance policy?Understanding the Different Risk Classifications in Life InsuranceWhat are the three ratings of classification that denotes the risk level of insureds?Understanding the Factors that Influence Life Value CalculationBased on the Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?Understanding the Free Look Period in Life InsuranceWhat is the "free look" period in life insurance?Understanding the Grace Period in Life Insurance PoliciesWhat does "grace period" refer to in a life insurance policy?Understanding the Guaranteed Insurability Option in Life InsuranceWhat option allows an insured to add periodic increases to their policy's face amount without evidence of insurability?Understanding the Importance of Key Person Insurance for Your BusinessWhat is the main purpose of key person insurance?Understanding the Importance of Life InsuranceWhat is the primary purpose of life insurance?Understanding the Key Aspects of Life Insurance PoliciesWhat information is commonly found in a buyer's guide regarding life insurance policies?Understanding the Key Features of Permanent Life InsuranceWhich of the following is a key feature of permanent life insurance?Understanding the Key Role of Policy Premiums in Life InsuranceWhat is the importance of the "policy premium"?Understanding the Maximum Coverage Offered by the Life and Health Guaranty AssociationWhat is generally the maximum coverage provided by the Life and Health Guaranty Association?Understanding the Meaning of Viatical in Life InsuranceWhat does the term "viatical" refer to in insurance?Understanding the Needs Approach for Life Insurance CoverageWhat determines how much benefit would be necessary to replace lost income and increased expense in case of premature death?Understanding the Ownership and Premium Payment in an Executive Bonus PlanWho is the owner of the policy and pays the premium in an Executive Bonus plan?Understanding the Potential Benefits of a Variable Life Insurance PolicyWhat can be a likely consequence of having a variable life insurance policy?Understanding the Regulatory Entities for Variable Life PoliciesWhat entities regulate variable life policies?Understanding the Requirements for Delivering Life Insurance PoliciesUpon policy delivery, the agent may be required to obtain any of the following EXCEPT?Understanding the Role of Policy Ownership in an Executive Bonus PlanWhich of the following roles does the executive play in an Executive Bonus plan?Understanding the Role of Supplemental Insurance in Your Financial SecurityWhat is the purpose of "supplemental insurance"?Understanding the Role of the Agent's Report in Insurance UnderwritingWhich report could the insurance company underwriter use to find information about an applicant's personal activities?Understanding the Role of the Application in InsuranceWhat is the main purpose of the "application" in the insurance process?Understanding the Role of the Medical Information Bureau in Life InsuranceWhich best describes the function of the Medical Information Bureau (MIB)?Understanding the Single Life Option in Primerica Life InsuranceWhich option provides a single beneficiary with income for the rest of his/her life?Understanding the Social Security Blackout Period Following the Death of a SpouseWhat government program allows for a blackout period due to the death of a spouse?Understanding the Underwriting Process for Life InsuranceWhich of the following best details the underwriting process for life insurance?Understanding Variable Universal Life Insurance OptionsWhat does "variable universal life insurance" offer?Understanding Viatical Settlements for Financial ReliefAn insured with a life-threatening disease has financial difficulties. Which option could he utilize right now?Understanding What Affects Life Insurance CostsWhich of the following factors can influence life insurance costs?Understanding What It Means When a Life Insurance Policy Is LapsedIn the context of insurance, what does "lapsed" mean?Understanding When Insurers Can Raise Rates Under State RegulationsWhen can an insurer increase rates according to state regulations?Understanding Who Can Be Charged Higher Insurance RatesWhich applicant could an insurer charge a higher rate without being accused of unfair discrimination?Understanding Who Pays Premiums on a Key Person Life Insurance PolicyWho is responsible for paying the premiums on a Key Person Life Insurance Policy?Understanding Who Qualifies as Insurable Interests in Life InsuranceWho qualifies as "insurable interests" in life insurance?Understanding Whole Life Insurance Policies and Their BenefitsWhat is a "whole life" insurance policy?Understanding Why Substandard Risk Leads to Higher Insurance PremiumsWhat type of risk will result in the highest premium?What Causes Dividends to Decrease in Life Insurance Policies?What typically causes dividends to decrease for a life insurance policy?What Determines the Cost of Life Insurance Premiums?What determines the cost of life insurance premiums?What Happens to Your Straight Life Policy When You Reach Age 100?With a Straight Life policy, what happens if the insured lives to age 100?What You Need to Know About Choosing a Revocable Beneficiary for Life InsuranceIf Bonnie wishes to retain all rights of ownership while naming her husband as the beneficiary, what type of beneficiary should she choose?What You Need to Know About Key Person InsuranceWhat is "key person insurance"?What You Need to Know About Life Insurance AdsWhich of the following may NOT be included in an insurance company's advertisement?What You Should Know About Underwriting Factors in Group InsuranceWhich of the following factors are generally not considered when underwriting group insurance?Why businesses consider life insurance to protect key partners and ensure continuityIn a business context, why might partners consider life insurance?Why Permanent Life Insurance Comes with the Highest PremiumsWhat type of life insurance typically has the highest premiums?

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What is the purpose of establishing an insurable interest in a life insurance policy?
What is meant by "life insurance replacement"?
Which of the following best describes an aleatory contract?
What approach is used to determine the amount of insurance an individual requires based on their financial objectives?
Which of the following would NOT fall into the category of costs associated with death?
If Earl uses an existing life insurance policy to secure a debt instead of purchasing Credit Life insurance, what is this called?
Under which condition can an individual apply for a preferred risk classification?
A key person insurance policy can pay for which of the following?
When a policyowner specifies a dollar amount for installments, which settlement option have they chosen?
Which option is NOT considered an example of insurable interest?
What is the purpose of "life insurance for children"?
What term describes the insured who enters into a viatical settlement?
In a Key Person Life Insurance Policy, who is typically the owner and beneficiary?
What is an essential feature of an insurance trust for life insurance?
Who has the authority to make changes to the policy once it is in effect?
What is the difference between a primary beneficiary and a contingent beneficiary?
What advantage does having an insurance trust provide regarding life insurance policies?
Kayla needs funding for her child's daycare after her husband's death. What would be the best source of funding?
How can a policyholder typically access their cash value?
What is a benefit of having supplemental insurance?
Which of the following is least likely to be considered a legitimate need paid by insurance proceeds?
Which of the following is NOT considered when determining the value of someone's life using the needs approach?
Which term describes policies that are in direct opposition to the principle of insurable interest?
What is a "convertible" term policy?
Life insurance can be utilized to cover state inheritance and federal estate taxes, preventing asset liquidation. What is this known as?
When an employer offers an employee a wage increase equal to the new life insurance policy's premium, what is this called?
Amy's insurance premium has decreased slightly. What most likely caused the premium decrease?
What is the period called when no benefits are paid between a child's 16th birthday and when a surviving spouse qualifies for retirement benefits?
What is "underwriting guidelines"?
After filing a new rate, how many days does an insurer wait for a response from the Commissioner before applying the new rate if there is no reply?
How does the Accelerated Benefit provision affect the benefits paid to the beneficiary?
In a Cross Purchase plan involving two equal partners, how much does partner A buy a policy on partner B for?
What term describes the provision stating that both the policy and a copy of the application form the contract?
Which of the following is NOT true regarding the Life and Health Guaranty Association?
What type of policy allows an insured to withdraw a portion of its cash value to pay medical bills?
When do dividends typically get issued to policyholders?
Which non-forfeiture option provides the highest amount of insurance protection?
Which policy provision permits an insured to utilize part of the death benefit while still alive, if they are terminally ill?
What is the significance of the "contestability period"?
What qualifications must an agent hold to sell variable life insurance policies?
Which of the following is NOT a legitimate use of insurance in a business context?
Rod wants to pay his initial life insurance premium in advance. Which of the following best describes his situation?
Which action is typically deemed unethical for an insurance agent?
Who must have insurable interest in the insured?
Which of the following is NOT typically covered by supplemental insurance?
What is a common feature of whole life insurance policies regarding cash values?
Which of the following is NOT commonly provided in an insurance application?
What is the purpose of the paid-up addition option?
What is a primary characteristic of supplemental insurance?
What is the primary role of a licensed insurance agent?
What is the term for the factor added to the net premium to cover the costs of the insurer in obtaining and maintaining business?
What is a characteristic of a guaranteed renewable option?
In a partnership where Partner A has a policy on Partner B, who receives the death benefit if Partner B dies after the partnership ends?
What is an insurance "policy loan"?
Define "universal life" insurance.
If a life insurance policy has a savings/cash value feature, which of the following is true?
Who holds the legal title of the property in a trust?
If a life insurance policy designates an irrevocable beneficiary, what restrictions apply?
A man wants to buy a life insurance policy in which he can count on guaranteed minimum benefits. Which type should he buy?
If an insured's cash value significantly decreases in one month, what type of policy do they likely have?
Grace wants to receive income from her grandfather's life insurance policy while conserving the face amount. Which settlement option is appropriate?
What potential concern arises if the applicant for a life insurance policy and the person to be insured are two different individuals?
Which type of term policy generally has the least expensive first-year premium payment?
What does "self-insured" mean?
What happens if the policyowner of an Adjustable Life policy increases premium payments?
Which type of life insurance is usually focused on providing coverage for a defined period?
What is "retirement planning" with life insurance?
Which statement about the use of life insurance as an Executive Bonus is incorrect?
In a fixed amount settlement option, what does the policy owner specify?
What is the purpose of the buyer's guide?
What are riders in life insurance?
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds which of the following amounts?
What characterizes term life insurance?
What is the significance of mortality tables in life insurance?
What information are members of the Medical Information Bureau required to report?
What does "term expiration" refer to in a life insurance policy?
What type of clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years?
What does "level term" mean in a life insurance policy?
What does a fixed life insurance policy guarantee?
What could be a potential disadvantage of life insurance replacement?
What does "reactivating a lapsed policy" refer to in life insurance?
What does "premium payment frequency" refer to?
What does "permanent life insurance" provide to the policyholder?
What is "permanent insurance" designed to provide?
What is typically a factor that does NOT influence life insurance premiums?
Concerning the taxation of a Key Person Life Insurance Policy, which statement is correct?
Which statement about life settlements is NOT true?
What type of policy should an applicant choose if they want a policy that has a cash value element?
Which classification suggests that an individual has a higher risk factor compared to the standard classification?
What does "premium mode" refer to?
Replacing insurers are permitted to use an electronically completed notice of replacement. When this method is used, a printed copy of the notice must be sent to the applicant within:
In insurance, what do "dividends" refer to?
What occurs to the face amount of a policy when a reduced-paid up non-forfeiture option is selected?
What will likely happen to the policy premium if the applicant has dangerous habits, a risky occupation, and poor health?
Which rider provides for a waiver of premium if the policy owner and insured are different people?
What does "solvency" mean regarding an insurance company?
Key person life insurance does NOT reimburse a company for which of the following?
In collective behaviors regarding insurance, what does the law of large numbers ensure for the insurance company?
Which term describes the amount received by a beneficiary in the event of the insured's death?
What is a key benefit of a viatical settlement for someone with a terminal illness?
What is typically true for insureds who have attained preferred status?
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
How does evidence of insurability affect life insurance applications?
Which of the following entities conducts the underwriting process for life insurance policies?
What is the tax status of interest earned on dividends from a life insurance policy?
Which of the following are the two main types of life insurance policies?
Which statement accurately describes a feature of permanent life insurance?
Which factors are commonly considered in life insurance underwriting?
If an insured stops making payments on a loan taken from his cash value policy, what is likely to happen?
Which of the following is an element in calculating an individual's life value according to the Human Life Value Approach?
What is the primary source of information used for insurance underwriting?
When will coverage begin if an applicant does not wish to give the agent the initial premium?
In which situation would an insurer likely pay out a death benefit?
Which of the following best describes the personal uses of life insurance?
What determines the length of time that benefits will be received under the Fixed Amount settlement option?
An underwriter requires further information due to a medical situation the applicant had in the past. What will the underwriter require?
What is the purpose of underwriting in life insurance?
What is an "accelerated death benefit" rider?

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