PRIMERICA LIFE INSURANCE EXAM VERSION A AND B NEWEST ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS WITH EXPLANATIONS (VERIFIED ANSWERS) |ALREADY GRADED A+

1 | P a g e PRIMERICA LIFE INSURANCE EXAM VERSION A AND B NEWEST 2024-2025 ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS WITH EXPLANATIONS (VERIFIED ANSWERS) |ALREADY GRADED A+ PRIMERICA LIFE INSURANCE EXAM VERSION A which of the following is the best reason to purchase life insurance rather than annuities? a. to liquidate a sum of money over a period of year b. to create regular income payments c. to liquidate a sum money over a lifetime d. to create an estate - ANSWER- D. to create an estate Explanation: with insurance, the death creates an immediate estate should the insured die a producer is helping a married couple determine the financial needs of their children in the event of one or both should die prematurely. This is a personal use of life insurance known as 2 | P a g e a. survivorship insurance b. juvenile protection provision c. survivorship protection d. life planning - ANSWER- C. survivorship protection Explanation: life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. This is known as survivor protection a producer agent must do all of the following when delivering a new policy to the insured EXCEPT a. disclose commissions earned from the sale of the policy b. explain the policy provisions, riders, and exclusions c. collect any premium due d. explain the rating procedures if the policy is rated differently than applied for - ANSWER- A. disclose commissions earned fro the sale of the policy Explanation: a producer must explain policy provisions, exclusions, and riders at the time of the delivery, as well as the rating procedures especially if the policy is rated differently than applied for. The producer must also collect 3 | P a g e any due premium and have the insured sign the statement go continued good health if an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about a. which individual will pay the premium b. whether an insurable interest exists between the individuals c. the gender of applicant d. the type of policy requested - ANSWER- B. whether an insurable interest exists between the individuals Explanation: an insurable interest must exist at the time of the policy is issued. Some relationships are automatically presumed to qualify as an insurable interest. ex: spouses, parents, children, and certain business relationships When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by a. a physician of the applicant's choice and at his expense b. a home office underwriter 4 | P a g e c. a paramedic or examining physician at the insurer's expense d. the agent - ANSWER- C. a paramedic or examining physician at the insurer's expense Explanation: the applicant may be allowed to select the physician or paramedic facility to perform the examination. The insurer pays the cost of such an examination The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called a. expenses b. legal reserve c. dividend accumulation d. premium tax - ANSWER- A. expenses Explanation: loading is another term for expenses. Net premium (mortality minus interest earned) plus expenses (or loading) equal the gross premium which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?