PSI CERTIFICATION TEST PAPER FULLY
SOLVED QUESTIONS AND CORRECT
ANSWERS REVIEW RESOURCE
●● 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
SOLVED QUESTIONS AND CORRECT
ANSWERS REVIEW RESOURCE
●● 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
