PSI Practice exam NJ Questions And Answers 2024

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