PSI Life Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/PSI%20Life%20
PSI Life Exam Questions & Answers
1. What kind of retirement plan can a 75-employee for profit corporation
establish?
Answer Simple IRA
2. The taxable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the
Answer Exclusion ratio
3. 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
4. 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
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,PSI Life Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/PSI%20Life%20
5. 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
6. An insurance company may contest a life policy within a MAXIMUM of how
many years after the policy's effective date?
Answer 2
7. All of the following factors are used in life insurance premium determination
EXCEPT
Answer Morbidity
8. 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
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,PSI Life Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/PSI%20Life%20
9. 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
10. Dividends are NOT subject to taxation because
Answer Paying dividends is equiva- lent to returning a premium
11. 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
12. 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
13. Which of the following guarantees that the annuitant CANNOT outlive their
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3 of 23 11/18/2024, 3:32
PSI Life Exam Questions & Answers
1. What kind of retirement plan can a 75-employee for profit corporation
establish?
Answer Simple IRA
2. The taxable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the
Answer Exclusion ratio
3. 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
4. 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
1/
1 of 23 11/18/2024, 3:32
,PSI Life Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/PSI%20Life%20
5. 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
6. An insurance company may contest a life policy within a MAXIMUM of how
many years after the policy's effective date?
Answer 2
7. All of the following factors are used in life insurance premium determination
EXCEPT
Answer Morbidity
8. 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
2/
2 of 23 11/18/2024, 3:32
,PSI Life Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/PSI%20Life%20
9. 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
10. Dividends are NOT subject to taxation because
Answer Paying dividends is equiva- lent to returning a premium
11. 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
12. 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
13. Which of the following guarantees that the annuitant CANNOT outlive their
3/
3 of 23 11/18/2024, 3:32
