PSI Life Exam questions and answers
2026\2027 A+ Grade
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
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
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
2026\2027 A+ Grade
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
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
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
