FIN RISK MANAG PRIMERICA Life Insurance Exam with Answers 2025/2026
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 - ANSWER 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 - ANSWER 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 applicantsubmits 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