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PSI LIFE EXAM 2026 WITH
QUESTIONS AND ANSWERS
What kind of retirement plan can a 75-employee for profit corporation
establish? - correct answer-Simple IRA
The taxable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the - correct answer-
Exclusion ratio
Unfair claims settlement methods and practices by an insurance company
include all of the following acts EXCEPT - correct 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 -
correct answer-Interest only
Regulations on life insurance advertising apply to which of the following
insurance company materials? - correct answer-A radio commercial that
promotes the benefits of a specific company's life insurance products
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An insurance company may contest a life policy within a MAXIMUM of how
many years after the policy's effective date? - correct answer-2
All of the following factors are used in life insurance premium determination
EXCEPT - correct 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: - correct 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: - correct answer-Misrepresentation
Dividends are NOT subject to taxation because - correct 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: - correct answer-
Continues to pay the intermediary deferred commissions
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Which of the following products is designed to pay benefits that can provide
a stream of retirement income to the purchaser? - correct answer-tax-
deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their
benefits? - correct 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? - correct answer-It does not affect the insurance company's
obligations
In Wisconsin, an "intermediary" is defined as a representative of: - correct
answer-A Solicitor
All of the following statements regarding a group annuity are correct
EXCEPT - correct 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 - correct answer-
Representations
PSI LIFE EXAM 2026 WITH
QUESTIONS AND ANSWERS
What kind of retirement plan can a 75-employee for profit corporation
establish? - correct answer-Simple IRA
The taxable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the - correct answer-
Exclusion ratio
Unfair claims settlement methods and practices by an insurance company
include all of the following acts EXCEPT - correct 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 -
correct answer-Interest only
Regulations on life insurance advertising apply to which of the following
insurance company materials? - correct answer-A radio commercial that
promotes the benefits of a specific company's life insurance products
,2 |Page
An insurance company may contest a life policy within a MAXIMUM of how
many years after the policy's effective date? - correct answer-2
All of the following factors are used in life insurance premium determination
EXCEPT - correct 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: - correct 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: - correct answer-Misrepresentation
Dividends are NOT subject to taxation because - correct 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: - correct answer-
Continues to pay the intermediary deferred commissions
, 3 |Page
Which of the following products is designed to pay benefits that can provide
a stream of retirement income to the purchaser? - correct answer-tax-
deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their
benefits? - correct 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? - correct answer-It does not affect the insurance company's
obligations
In Wisconsin, an "intermediary" is defined as a representative of: - correct
answer-A Solicitor
All of the following statements regarding a group annuity are correct
EXCEPT - correct 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 - correct answer-
Representations
