PA Life practice exam from PSI (1) questions with correct answers

PA Life practice exam from PSI (1) questions with correct answers Current assumption whole life policies are sensitive to which of the following? 1. interest rates 2. age of the insured 3. health of the insured 4. current cash value of the policy - Answer- 1. interest rates Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms? 1. conditions 2. policy title page 3. insuring clause 4. definitions - Answer- 3. insuring clause Which of the following occurs immediately after the application is submitted and the initial premium paid? 1. the underwriting process begins 2. the applicant's references are checked 3. the beneficiaries are selected 4. the insurance goes into effect. - Answer- 1. the underwriting process begins Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? 1. the application is considered fraudulent and no benefits are paid. 2. the proceeds of the policy must be determined by a probate court proceeding 3. if the death is two years after originally policy purchase, complete benefits are paid 4. benefits are adjusted to an amount that the premium would have purchased at the correct age or gender - Answer- 4. benefits are adjusted to an amount that the premium would have purchased at the correct age or gende