PSI Life Exam m Complete Questions with
100% Correct Answers Verified Latest Update
What kind of retirement plan can a 75-employee for profit corporation establish?
- ans -Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase
from a nonqualified annuity is calculated using the - ans -Exclusion ratio
Unfair claims settlement methods and practices by an insurance company include
all of the following acts EXCEPT - ans -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 - ans -Interest
only
Without written consent, a policyowner CANNOT change the beneficiary if he has
named - ans -An irrevocable beneficiary
What element of a contract does the application represent? - ans -Offer
An life insurance policy is required to contain which of the following provisions? -
ans -A reinstatement provision during which the interest may be charge for late
payments
In which of the following fixed annuity features is the surrender value tied to
interest rates? - ans -Market value adjustments
Which of the following policies allows for partial surrender? - ans -Universal Life
Any form that becomes part of an insurance contract must be filed at the Office of
the Commissioner of Insurance - ans -Prior to its use
Keogh (HR 10) plans were designed to provide retirement benefits for - ans -Self-
employed individuals
, Which statements is NOT a characteristic of Group Life insurance plan? - ans -
Individual underwriting
Insurance applications with an AVERAGE life expectancy without higher than
normal risk factors are considered which type of risk? - ans -Standard
Which of the following dividend options is taxable? - ans -Accumulation at
interest
Which nonforfeiture option allows the policyowner to purchase less coverage for
life? - ans -Reduced Paid-Up Insurance
Who is allowed to make changes to a life insurance contact terms? - ans -An
officer of the company
Which of the following policies allows the policyowner to change two policy
features? - ans -Adjustable Life
Which of the following provides a death benefit if the spouse of the insured dies?
- ans -Family term insurance rider
Which of the following states BEST describes a single premium cash value policy? -
ans -It provides for only one premium to be paid without evidence of insurability
Universal life and variable life insurance policies contain many similar features.
Which of the following features is unique to variable universal life insurance? -
ans -It includes the right to select the investment which will provide the greatest
return
Which of the following is a potential DISADVANTAGE of a fixed annuity? - ans -
Annuitants could experience a decrease in the purchasing power of their
payments over a period of years due to inflation
A premium is due on a life insurance policy the first of each month. The
policyowner failed to pay the premium and 20 days later the insured died. Under
100% Correct Answers Verified Latest Update
What kind of retirement plan can a 75-employee for profit corporation establish?
- ans -Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase
from a nonqualified annuity is calculated using the - ans -Exclusion ratio
Unfair claims settlement methods and practices by an insurance company include
all of the following acts EXCEPT - ans -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 - ans -Interest
only
Without written consent, a policyowner CANNOT change the beneficiary if he has
named - ans -An irrevocable beneficiary
What element of a contract does the application represent? - ans -Offer
An life insurance policy is required to contain which of the following provisions? -
ans -A reinstatement provision during which the interest may be charge for late
payments
In which of the following fixed annuity features is the surrender value tied to
interest rates? - ans -Market value adjustments
Which of the following policies allows for partial surrender? - ans -Universal Life
Any form that becomes part of an insurance contract must be filed at the Office of
the Commissioner of Insurance - ans -Prior to its use
Keogh (HR 10) plans were designed to provide retirement benefits for - ans -Self-
employed individuals
, Which statements is NOT a characteristic of Group Life insurance plan? - ans -
Individual underwriting
Insurance applications with an AVERAGE life expectancy without higher than
normal risk factors are considered which type of risk? - ans -Standard
Which of the following dividend options is taxable? - ans -Accumulation at
interest
Which nonforfeiture option allows the policyowner to purchase less coverage for
life? - ans -Reduced Paid-Up Insurance
Who is allowed to make changes to a life insurance contact terms? - ans -An
officer of the company
Which of the following policies allows the policyowner to change two policy
features? - ans -Adjustable Life
Which of the following provides a death benefit if the spouse of the insured dies?
- ans -Family term insurance rider
Which of the following states BEST describes a single premium cash value policy? -
ans -It provides for only one premium to be paid without evidence of insurability
Universal life and variable life insurance policies contain many similar features.
Which of the following features is unique to variable universal life insurance? -
ans -It includes the right to select the investment which will provide the greatest
return
Which of the following is a potential DISADVANTAGE of a fixed annuity? - ans -
Annuitants could experience a decrease in the purchasing power of their
payments over a period of years due to inflation
A premium is due on a life insurance policy the first of each month. The
policyowner failed to pay the premium and 20 days later the insured died. Under
