How were those in the premortal world able to “reject the Spirit of God”? (Alma 13:4). President Joseph Fielding Smith (1876–1972) confirmed the eternal principle of agency as he answered this question:
“God gave his children their free agency even in the [premortal] spirit world, by which the individual spirits had the privilege, just as men have here, of choosing the good and rejecting the evil, or partaking of the evil to suffer the consequences of their sins. Because of this, some even there were more faithful than others in keeping the commandments of the Lord. …
“The spirits of men had their free agency. … The spirits of men were not equal. They may have had an equal start, and we know they were all innocent in the beginning; but the right of free agency which was given to them enabled some to outstrip others, and thus, through the eons of immortal existence, to become more intelligent, more faithful, for they were free to act for themselves, to think for themselves, to receive the truth or rebel against it” (Doctrines of Salvation, comp. Bruce R. McConkie, 3 vols. [1954–56], 1:58–59).
As spirits in the pre-earth life, we developed worthy characteristics that showed our abilities. God observed our progress and gave us responsibilities according to our faithfulness. President Joseph Fielding Smith taught: “During the ages in which we dwelt in the pre-mortal state we not only developed our various characteristics and showed our worthiness and ability, or the lack of it, but we were also where such progress could be observed. It is reasonable to believe that there was a Church organization there. The heavenly beings were living in a perfectly arranged society. Every person knew his place. Priesthood, without any question, had been conferred and the leaders were chosen to officiate. Ordinances pertaining to that pre-existence were required and the love of God prevailed. Under such conditions it was natural for our Father to discern and choose those who were most worthy and evaluate the talents of each individual. He knew not only what each of us could do, but also what each of us would do when put to the test and when responsibility was given us. Then, when the time came for our habitation on mortal earth, all things were prepared and the servants of the Lord chosen and ordained to their respective missions” (The Way to Perfection [1970], 50–51).