PRIMERICA LIFE INSURANCE EXAM LATEST 2023-2024
ACTUAL EXAM 300 REAL EXAM QUESTIONS AND
CORRECT ANSWERS WITH RATIONALES (100% VERIFIED
ANSWERS) |AGRADE
which of the following is NOT required for a producer to tell a prospect?
a. how the insurer would use any outside information regarding the
applicant
b. an explanation of products that the insurer is selling
c. what requirements the producer needed to meet to obtain the
insurance license
d. from what outside sources the insurer would seek information,
regarding the insured – ANSWER- C. what requirements the producer
needed to meet to obtain the insurance license
Rationale: agents are required to inform prospects of the products they
are selling, as well as their information collecting practices
which of the following statements concerning buy-sell agreements is
true?
a. premium paid are deductible as a business expense
b. benefits received are considered income taxable
c. buy-sell agreements pay in the event of a medical emergency
d. buy-sell agreements are normally funded with a life insurance
expectancy – ANSWER- D. buy-sell agreements are normally funded
with life insurance expectancy
Rationale: a buy-sell agreements is simply a contract that establishes
what willl be done with a business in the event that an owner dies. Buysell agreements are normally funded with a life insurance policy
Who may complete a paramedical report?
a. an underwriter
b. a nursing assistant
c. a registered nurse
d. a spouse – ANSWER- C. a registered nurse
Rationale: paramedical reports are completed by paramedics or
registered nurses. Full medical expectations are reserved for those
wanting higher coverage or for those who have more complex medical
history
the term “illustrations” in a life insurance policy refers to
a. a presentation of non guaranteed elements of a policy
b. a depiction of policy benefits and guarantees
c. pictures accompanying a policy
d. charts and graphs – ANSWER- A. a presentation of non guaranteed
elements of a policy
Rationale: the term “illustrations” means presentation of depiction that
includes non guaranteed elements of a policy of individual of group life
insurance over a period of years
which is generally true regarding insureds who have been classified as
preferred risks?
a. they can borrow higher amounts off of their policies
b. they can decide when to pay their monthly premiums
c. they keep a higher percentage of any interest earned on their policies
d. their premiums are lower – ANSWER- D. their premiums are lower
Rationale: the preferred risk classification indicates that an insured is in
excellent physical condition and employs healthy lifestyles and habits.
These individuals qualify to lower premiums than those in other
categories
all of the following are requirements for life insurance illustrations
EXCEPT?
a. they may only be used as approved
b. they must identify non guaranteed values
c. they must differentiate between guaranteed and projected amounts
d. they must be part of the contract – ANSWER- D. they must be part of
the contract
Rationale: an illustration may not be altered by an agent and must
clearly state that it is not part of the contract. It is legal to list non
guaranteed values in the contract, but they must be specifically labeled
as projected, not guaranteed values
Partners in a business enter into a buy-sell agreement to purchase life
insurance, which states that should one of them die prematurely, the
other would be financially able to buy the interest of the deceased
partner. What type of insurance policy may be used to fund this
agreement?
a. term insurance only
b. permanent insurance only
c. universal life insurance only
d. any form of life insurance – ANSWER- D.any form of life insurance
Rationale: any form of life insurance may be used to fund a buy-sell
agreement
an insurance policy that only requires a payment of premium at its
inception, provides insurance protection for the life of the insured and
matures at the insured’s age 100 is called?
a. Modified Endowment Contract (MEG)
b. level term life
c. graded premium whole life
d. single premium whole life – ANSWER- D. single premium whole life
Rationale: single premium whole life requires the entire premium to be
paid in one lump sum at the policy’s inception
Twin brothers are starting a new business. They know it will take several
years to build the business to the point that they can pay off the debt
incurred in starting the business. What type of insurance would be the
most affordable and still provide a death benefit should one of them die?
a. ordinary life
b. joint life
c. decreasing term
d. whole life – ANSWER- B. joint life
Rationale: a joint life policy covering 2 lives would be the least
expensive because the premiums are based on an average age, and it
would pay a death benefit only at the first death
an individual has just borrowed $10,000 from his bank on a 5-year
installment loan requiring monthly payments. What type of the life
insurance policy would be best suited to this situation?
a. universal life
b. whole life
c. decreasing term
d. variable life – ANSWER- C. decreasing term
Rationale: a decreasing term policy’s face amount decreases as the
amount of debt is reduced