PSI Practice exam NJ Actual Exam with Questions and Answers (2024 / 2025) 100% Guarantee Pass

1. all of the following are ownership rights EXCEPT: A: changing the beneficiary of the policy B: borrowing funds against cash value C: switching the policy from on insured to another D: assigning all of the rights of the policy to another person ANS : Cswitching the policy from on insured to another 2. which of the following is characteristic of a non qualified plan ADefined vesting schedule B: plan established by the employer C: plan does not meet federal guidelines for tax benefits D: employer contributions are deductible business expense ANS : Cplan does not meet federal guidelines for tax benefits 3. How do warranties differ from representations? A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge B: a representation is guaranteed to be true, a warranty is believed to be true to the best of one's knowledge C: a warranty is issued by the insurer, a representation is a statement provided by the applicant D: an incorrect representation automatically voids a contract, whereas an incorrect warranty must be proven ANS : A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge 4. in which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company Designation option B: recording method C: endorsement method D: succession of beneficiaries ANS : B: recording method