PSI Life Exam Review Questions and Answers Graded A+

PSI Life Exam Review Questions and Answers Graded A+

1. What kind of retirement plan can a 75- q q q q q q q



employee for profit corporation establish?: Simple IRA
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2. The taxable portion of a monthly income benefit paid during the annuity phase from
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a nonqualified annuity is calculated using the: Exclusion ratio
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3. Unfair claims settlement methods and practices by an insurance company include all o
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f the following acts EXCEPT: failure to pay all claims that are reported within 90 days after a los
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s occurs
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4. The settlement option that allows proceeds to remain with the insurer and the earnings
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to be paid to the beneficiary on a monthly basis is called: Interest only
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5. Regulations on life insurance advertising apply to which of the following insurance co
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mpany materials?: A radio commercial that promotes the benefits of a specific company's life
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qinsurance products q



6. An insurance company may contest a life policy within a MAXIMUM of how many years a
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fter the policy's effective date?: 2
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7. All of the following factors are used in life insurance premium determination EXCEPT: Mo
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rbidity
8. The authorization used to obtain the applicant's medical information that will be used
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qby the insurer for the primary purpose of determining eligibility must include:: the time fr
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ame in which the insurer must release the eligibility decision to the agent
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9. An intermediary who omits information on an insurance application without the applica
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nt's knowledge and submits the application to the insurer may be guilty of:: Misrepresenta
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tion
10. Dividends are NOT subject to taxation because: Paying dividends is equiva- q q q q q q q q q q



qlent to returning a premium
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11. The XYZ Insurance Company cancels an intermediary's contract. XYZ could be bo
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und by the intermediary's later acts if it:: Continues to pay the intermediary deferred co
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mmissions
12. Which of the following products is designed to pay benefits that can provide a strea
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, m of retirement income to the purchaser?: tax-deferred growth
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13. Which of the following guarantees that the annuitant CANNOT outlive their benefits?: G
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uaranteed lifetime withdrawal benefit
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14. Which of the following statements is CORRECT about an insured's failure to report a cl
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aim in a timely manner based on the advice of an intermediary?: It does not affect the insura
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nce company's obligations
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15. In Wisconsin, an "intermediary" is defined as a representative of:: A Solic- itor
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