PSI Practice Exam
NJ Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, 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
NJ Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, 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
