PSI Life Exam Questions and Answers
(Latest 2026)
What kind of retirement plan can a 75-employee for profit
corporation establish? - Correct Answers ✅Simple IRA
The taxable portion of a monthly income benefit paid during
the annuity phase from a nonqualified annuity is calculated
using the - Correct Answers ✅Exclusion ratio
Unfair claims settlement methods and practices by an
insurance company include all of the following acts EXCEPT -
Correct Answers ✅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 Answers ✅Interest only
Regulations on life insurance advertising apply to which of
the following insurance company materials? - Correct
Answers ✅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 Answers ✅2
All of the following factors are used in life insurance premium
determination EXCEPT - Correct Answers ✅Morbidity
,PSI Life Exam Questions and Answers
(Latest 2026)
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
Answers ✅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
Answers ✅Misrepresentation
Dividends are NOT subject to taxation because - Correct
Answers ✅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 Answers ✅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 Answers ✅tax-deferred growth
, PSI Life Exam Questions and Answers
(Latest 2026)
Which of the following guarantees that the annuitant CANNOT
outlive their benefits? - Correct Answers ✅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 Answers ✅It
does not affect the insurance company's obligations
In Wisconsin, an "intermediary" is defined as a representative
of: - Correct Answers ✅A Solicitor
All of the following statements regarding a group annuity are
correct EXCEPT - Correct Answers ✅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 Answers ✅Representations
Which of the following entities is responsible for notifying an
insurance company of a disability insurance claim? - Correct
Answers ✅1. Insured
2. Insured's physician
(Latest 2026)
What kind of retirement plan can a 75-employee for profit
corporation establish? - Correct Answers ✅Simple IRA
The taxable portion of a monthly income benefit paid during
the annuity phase from a nonqualified annuity is calculated
using the - Correct Answers ✅Exclusion ratio
Unfair claims settlement methods and practices by an
insurance company include all of the following acts EXCEPT -
Correct Answers ✅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 Answers ✅Interest only
Regulations on life insurance advertising apply to which of
the following insurance company materials? - Correct
Answers ✅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 Answers ✅2
All of the following factors are used in life insurance premium
determination EXCEPT - Correct Answers ✅Morbidity
,PSI Life Exam Questions and Answers
(Latest 2026)
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
Answers ✅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
Answers ✅Misrepresentation
Dividends are NOT subject to taxation because - Correct
Answers ✅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 Answers ✅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 Answers ✅tax-deferred growth
, PSI Life Exam Questions and Answers
(Latest 2026)
Which of the following guarantees that the annuitant CANNOT
outlive their benefits? - Correct Answers ✅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 Answers ✅It
does not affect the insurance company's obligations
In Wisconsin, an "intermediary" is defined as a representative
of: - Correct Answers ✅A Solicitor
All of the following statements regarding a group annuity are
correct EXCEPT - Correct Answers ✅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 Answers ✅Representations
Which of the following entities is responsible for notifying an
insurance company of a disability insurance claim? - Correct
Answers ✅1. Insured
2. Insured's physician
