NJ PSI Practice Exam Questions and Answers
100% Verified Graded A+
1. all of the following are ownership rights EXCEPT:
A: changing the beneficiary of the policy B:
borrowing funds against cash value
C: switching the policy from on insured to another
D: assigning all of the rights of the policy to another person
Answer: C: switching the policy from on insured to another
2. which of the following is characteristic of a non qualified plan: A:
defined vesting schedule
B: plan established by the employer
C: plan does not meet federal guidelines for tax benefits
D: employer contributions are deductible business expense
Answer: C: plan does not meet federal guidelines for tax benefits
3. How do warranties differ from representations?
,A: a warranty is guaranteed to be true, a representation is believed to be true to the
best of one's knowledge
B: a representation is guaranteed to be true, a warranty is believed to be true to the
best of one's knowledge
C: a warranty is issued by the insurer, a representation is a statement provided by the
applicant
D: an incorrect representation automatically voids a contract, whereas an incorrect
warranty must be proven:
Answer: A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's
knowledge
4. in which of the following must a beneficiary change request be filed in writing
to the insurer and is made effective by the insurance company: A: designation
option
B: recording method
C: endorsement method
D: succession of beneficiaries
Answer: B: recording method
5. all of the following are required signature on a life insurance application
EXCEPT:
, A: the agent
B: the applicant
C: the minor in a juvenile policy
D: the proposed insured
Answer: C: the minor in a juvenile policy
6. all of the following are features of the spendthrift clause EXCEPT: A:
proceeds are paid in some other way than a single premium
B: proceeds are protected by the insurer from the beneficiary's creditors C:
transfer of proceeds to creditors
D: the beneficiary may encumber the proceeds
Answer: D: the beneficiary may encumber the
proceeds
7. Which type of annuity attempts to offset inflation by providing a benefit linked to
an underlying investment account:
A: deferred
B: fixed
C: immediate
D: variable
Answer: D: variable
100% Verified Graded A+
1. all of the following are ownership rights EXCEPT:
A: changing the beneficiary of the policy B:
borrowing funds against cash value
C: switching the policy from on insured to another
D: assigning all of the rights of the policy to another person
Answer: C: switching the policy from on insured to another
2. which of the following is characteristic of a non qualified plan: A:
defined vesting schedule
B: plan established by the employer
C: plan does not meet federal guidelines for tax benefits
D: employer contributions are deductible business expense
Answer: C: plan does not meet federal guidelines for tax benefits
3. How do warranties differ from representations?
,A: a warranty is guaranteed to be true, a representation is believed to be true to the
best of one's knowledge
B: a representation is guaranteed to be true, a warranty is believed to be true to the
best of one's knowledge
C: a warranty is issued by the insurer, a representation is a statement provided by the
applicant
D: an incorrect representation automatically voids a contract, whereas an incorrect
warranty must be proven:
Answer: A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's
knowledge
4. in which of the following must a beneficiary change request be filed in writing
to the insurer and is made effective by the insurance company: A: designation
option
B: recording method
C: endorsement method
D: succession of beneficiaries
Answer: B: recording method
5. all of the following are required signature on a life insurance application
EXCEPT:
, A: the agent
B: the applicant
C: the minor in a juvenile policy
D: the proposed insured
Answer: C: the minor in a juvenile policy
6. all of the following are features of the spendthrift clause EXCEPT: A:
proceeds are paid in some other way than a single premium
B: proceeds are protected by the insurer from the beneficiary's creditors C:
transfer of proceeds to creditors
D: the beneficiary may encumber the proceeds
Answer: D: the beneficiary may encumber the
proceeds
7. Which type of annuity attempts to offset inflation by providing a benefit linked to
an underlying investment account:
A: deferred
B: fixed
C: immediate
D: variable
Answer: D: variable
