PSI Practice exam NJ Accurate 100%(GRADED A+)

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 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 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 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 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 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 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 how does the per capita rule apply to proceeds from a life insurance policy: A: the proceeds are divided equally among living primary beneficiaries B: the secondary beneficiary receives the proceeds if the primary beneficiary is no longer living C: the proceeds go to the policyholder's estate when no beneficiary is living D: the proceeds go to the descendants of the primary beneficiaries - ANSWER A: the proceeds are divided equally among living primary beneficiaries if the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT: A: insurer's practices with respect to the treatment of this information B: the applicant's right to maintain privacy C: an opportunity to refuse the dissemination of the information