PSI LIFE EXAM QUESTIONS &
UPDATED ANSWERS PASSED
ALREADY GRADED A+
What kind of retirement plan can a 75-employee for profit corporation establish? -
Correct Answer ✔✔ Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase from a
nonqualified annuity is calculated using the - Correct Answer ✔✔ Exclusion ratio
Unfair claims settlement methods and practices by an insurance company include all of
the following acts EXCEPT - Correct Answer ✔✔ failure to pay all claims that are
reported within 90 days after a loss occurs
The settlement option that allows proceeds to remain with the insurer and the earnings
to be paid to the beneficiary on a monthly basis is called - Correct Answer ✔✔ Interest
only
Regulations on life insurance advertising apply to which of the following insurance
company materials? - Correct Answer ✔✔ A radio commercial that promotes the
benefits of a specific company's life insurance products
An insurance company may contest a life policy within a MAXIMUM of how many years
after the policy's effective date? - Correct Answer ✔✔ 2
All of the following factors are used in life insurance premium determination EXCEPT -
Correct Answer ✔✔ Morbidity
The authorization used to obtain the applicant's medical information that will be used by
the insurer for the primary purpose of determining eligibility must include: - Correct
Answer ✔✔ the time frame in which the insurer must release the eligibility decision to
the agent
An intermediary who omits information on an insurance application without the
applicant's knowledge and submits the application to the insurer may be guilty of: -
Correct Answer ✔✔ Misrepresentation
Dividends are NOT subject to taxation because - Correct Answer ✔✔ Paying dividends
is equivalent to returning a premium
, The XYZ Insurance Company cancels an intermediary's contract. XYZ could be bound
by the intermediary's later acts if it: - Correct Answer ✔✔ Continues to pay the
intermediary deferred commissions
Which of the following products is designed to pay benefits that can provide a stream of
retirement income to the purchaser? - Correct Answer ✔✔ tax-deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their benefits? -
Correct Answer ✔✔ Guaranteed lifetime withdrawal benefit
Which of the following statements is CORRECT about an insured's failure to report a
claim in a timely manner based on the advice of an intermediary? - Correct Answer ✔✔
It does not affect the insurance company's obligations
In Wisconsin, an "intermediary" is defined as a representative of: - Correct Answer ✔✔
A Solicitor
All of the following statements regarding a group annuity are correct EXCEPT - Correct
Answer ✔✔ Each employee signs and receives an individual contract
Statements by an application concerning personal health history, family health history,
occupation, and hobbies are referred to as - Correct Answer ✔✔ Representations
Which of the following entities is responsible for notifying an insurance company of a
disability insurance claim? - Correct Answer ✔✔ 1. Insured
2. Insured's physician
An insurer may cancel a policy midterm for all of the following reasons EXCEPT when
the insured: - Correct Answer ✔✔ Has a change in marital status
An accelerated death benefit - Correct Answer ✔✔ Pays a portion of the face amount
when a policyowner is determined to be terminally ill
Upon annuitization, which of the following will have the HIGHEST monthly payout? -
Correct Answer ✔✔ Straight Life
Backdating on a life insurance policy is the practice of - Correct Answer ✔✔ Making the
policy effective on an earlier date then the present
Wisconsin insurance law requires intermediaries to keep policyholder records for at
least how many years after termination or lapse of the policy? - Correct Answer ✔✔ 3
When underwriting group life insurance, the underwriter - Correct Answer ✔✔ Typically
evaluates the group as a whole
UPDATED ANSWERS PASSED
ALREADY GRADED A+
What kind of retirement plan can a 75-employee for profit corporation establish? -
Correct Answer ✔✔ Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase from a
nonqualified annuity is calculated using the - Correct Answer ✔✔ Exclusion ratio
Unfair claims settlement methods and practices by an insurance company include all of
the following acts EXCEPT - Correct Answer ✔✔ failure to pay all claims that are
reported within 90 days after a loss occurs
The settlement option that allows proceeds to remain with the insurer and the earnings
to be paid to the beneficiary on a monthly basis is called - Correct Answer ✔✔ Interest
only
Regulations on life insurance advertising apply to which of the following insurance
company materials? - Correct Answer ✔✔ A radio commercial that promotes the
benefits of a specific company's life insurance products
An insurance company may contest a life policy within a MAXIMUM of how many years
after the policy's effective date? - Correct Answer ✔✔ 2
All of the following factors are used in life insurance premium determination EXCEPT -
Correct Answer ✔✔ Morbidity
The authorization used to obtain the applicant's medical information that will be used by
the insurer for the primary purpose of determining eligibility must include: - Correct
Answer ✔✔ the time frame in which the insurer must release the eligibility decision to
the agent
An intermediary who omits information on an insurance application without the
applicant's knowledge and submits the application to the insurer may be guilty of: -
Correct Answer ✔✔ Misrepresentation
Dividends are NOT subject to taxation because - Correct Answer ✔✔ Paying dividends
is equivalent to returning a premium
, The XYZ Insurance Company cancels an intermediary's contract. XYZ could be bound
by the intermediary's later acts if it: - Correct Answer ✔✔ Continues to pay the
intermediary deferred commissions
Which of the following products is designed to pay benefits that can provide a stream of
retirement income to the purchaser? - Correct Answer ✔✔ tax-deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their benefits? -
Correct Answer ✔✔ Guaranteed lifetime withdrawal benefit
Which of the following statements is CORRECT about an insured's failure to report a
claim in a timely manner based on the advice of an intermediary? - Correct Answer ✔✔
It does not affect the insurance company's obligations
In Wisconsin, an "intermediary" is defined as a representative of: - Correct Answer ✔✔
A Solicitor
All of the following statements regarding a group annuity are correct EXCEPT - Correct
Answer ✔✔ Each employee signs and receives an individual contract
Statements by an application concerning personal health history, family health history,
occupation, and hobbies are referred to as - Correct Answer ✔✔ Representations
Which of the following entities is responsible for notifying an insurance company of a
disability insurance claim? - Correct Answer ✔✔ 1. Insured
2. Insured's physician
An insurer may cancel a policy midterm for all of the following reasons EXCEPT when
the insured: - Correct Answer ✔✔ Has a change in marital status
An accelerated death benefit - Correct Answer ✔✔ Pays a portion of the face amount
when a policyowner is determined to be terminally ill
Upon annuitization, which of the following will have the HIGHEST monthly payout? -
Correct Answer ✔✔ Straight Life
Backdating on a life insurance policy is the practice of - Correct Answer ✔✔ Making the
policy effective on an earlier date then the present
Wisconsin insurance law requires intermediaries to keep policyholder records for at
least how many years after termination or lapse of the policy? - Correct Answer ✔✔ 3
When underwriting group life insurance, the underwriter - Correct Answer ✔✔ Typically
evaluates the group as a whole
