PSI LIFE INSURANCE ACTUAL EXAM |COMPLETE QUESTIONS
WITH EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
What kind of retirement plan can a 75-employee for profit corporation establish? -
(answer)Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase from a
nonqualified annuity is calculated using the - (answer)Exclusion ratio
Unfair claims settlement methods and practices by an insurance company include all of the
following acts EXCEPT - (answer)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 - (answer)Interest only
Regulations on life insurance advertising apply to which of the following insurance company
materials? - (answer)A radio commercial that promotes the benefits of a specific company's life
insurance products
,An insurance company may contest a life policy within a MAXIMUM of how many years after
the policy's effective date? - (answer)2
All of the following factors are used in life insurance premium determination EXCEPT -
(answer)Morbidity
The authorization used to obtain the applicant's medical information that will be used by the
insurer for the primary purpose of determining eligibility must include: - (answer)the time frame
in which the insurer must release the eligibility decision to the agent
An intermediary who omits information on an insurance application without the applicant's
knowledge and submits the application to the insurer may be guilty of: -
(answer)Misrepresentation
Dividends are NOT subject to taxation because - (answer)Paying dividends is equivalent to
returning a premium
The XYZ Insurance Company cancels an intermediary's contract. XYZ could be bound by the
intermediary's later acts if it: - (answer)Continues to pay the intermediary deferred commissions
, Which of the following products is designed to pay benefits that can provide a stream of
retirement income to the purchaser? - (answer)tax-deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their benefits? -
(answer)Guaranteed lifetime withdrawal benefit
Which of the following statements is CORRECT about an insured's failure to report a claim in a
timely manner based on the advice of an intermediary? - (answer)It does not affect the insurance
company's obligations
In Wisconsin, an "intermediary" is defined as a representative of: - (answer)A Solicitor
All of the following statements regarding a group annuity are correct EXCEPT - (answer)Each
employee signs and receives an individual contract
Statements by an application concerning personal health history, family health history,
occupation, and hobbies are referred to as - (answer)Representations
Which of the following entities is responsible for notifying an insurance company of a disability
insurance claim? - (answer)1. Insured
WITH EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
What kind of retirement plan can a 75-employee for profit corporation establish? -
(answer)Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase from a
nonqualified annuity is calculated using the - (answer)Exclusion ratio
Unfair claims settlement methods and practices by an insurance company include all of the
following acts EXCEPT - (answer)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 - (answer)Interest only
Regulations on life insurance advertising apply to which of the following insurance company
materials? - (answer)A radio commercial that promotes the benefits of a specific company's life
insurance products
,An insurance company may contest a life policy within a MAXIMUM of how many years after
the policy's effective date? - (answer)2
All of the following factors are used in life insurance premium determination EXCEPT -
(answer)Morbidity
The authorization used to obtain the applicant's medical information that will be used by the
insurer for the primary purpose of determining eligibility must include: - (answer)the time frame
in which the insurer must release the eligibility decision to the agent
An intermediary who omits information on an insurance application without the applicant's
knowledge and submits the application to the insurer may be guilty of: -
(answer)Misrepresentation
Dividends are NOT subject to taxation because - (answer)Paying dividends is equivalent to
returning a premium
The XYZ Insurance Company cancels an intermediary's contract. XYZ could be bound by the
intermediary's later acts if it: - (answer)Continues to pay the intermediary deferred commissions
, Which of the following products is designed to pay benefits that can provide a stream of
retirement income to the purchaser? - (answer)tax-deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their benefits? -
(answer)Guaranteed lifetime withdrawal benefit
Which of the following statements is CORRECT about an insured's failure to report a claim in a
timely manner based on the advice of an intermediary? - (answer)It does not affect the insurance
company's obligations
In Wisconsin, an "intermediary" is defined as a representative of: - (answer)A Solicitor
All of the following statements regarding a group annuity are correct EXCEPT - (answer)Each
employee signs and receives an individual contract
Statements by an application concerning personal health history, family health history,
occupation, and hobbies are referred to as - (answer)Representations
Which of the following entities is responsible for notifying an insurance company of a disability
insurance claim? - (answer)1. Insured
