PSI LIFE: INSIDE THE EDGE
⩥ 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
2. Insured's physician
⩥ An insurer may cancel a policy midterm for all of the following
reasons EXCEPT when the insured: Answer: Has a change in marital
status
⩥ An accelerated death benefit Answer: Pays a portion of the face
amount when a policyowner is determined to be terminally ill
⩥ Upon annuitization, which of the following will have the HIGHEST
monthly payout? Answer: Straight Life
⩥ 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
2. Insured's physician
⩥ An insurer may cancel a policy midterm for all of the following
reasons EXCEPT when the insured: Answer: Has a change in marital
status
⩥ An accelerated death benefit Answer: Pays a portion of the face
amount when a policyowner is determined to be terminally ill
⩥ Upon annuitization, which of the following will have the HIGHEST
monthly payout? Answer: Straight Life
