PSI Life Insurance Test (solved) Questions and Answers Verified 100% Correct

PSI Life Insurance Test (solved) Questions and Answers Verified 100% Correct All of the following are ownership rights EXCEPT - ANSWER -switching the policy from one insured to another Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy? - ANSWER -establishing a trust to administer proceeds 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 recording the change in its records? - ANSWER -recording method 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? - ANSWER -insuring clause Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy? - ANSWER -establishing a trust to administer proceeds Which of the following occurs immediately after the application is submitted and the initial premium paid? - ANSWER -the underwriting process begins All of the following are tax qualified retirement plans EXCEPT - ANSWER Section 529 plan For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following? - ANSWER -age If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT - ANSWER -the treatment procedures that are covered by the policy. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while - ANSWER -committing a misdemeanor What type of insurance should a company purchase if it wants to insure the life of its CEO? - ANSWER -key person insurance For an individual long-term care policy there is an annual dollar limit for tax deductions that is base on which of the following? - ANSWER -age Which of the following term insurance types provides temporary protection that can be changed to some type of permanent protection without evidence of insurability? - ANSWER -convertible Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy? - ANSWER -any exclusions All of the following are ownership rights EXCEPT - ANSWER -switching the policy from one insured to another How might someone cover the extra expenses of child care and home-related costs? - ANSWER -purchasing family term insurance All of the following are required signatures on a life insurance application EXCEPT - ANSWER -the minor in a juvenile policy Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries? - ANSWER -They are MORE likely to receive a loan based on the expectations of the proceeds. why is relying solely on employer group life insurance generally considered inadequate for most individual's needs? - ANSWER -It is financially insufficient to cover end of life expenses. How do warranties differ from representations? - ANSWER -a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge. The group conversion option is allowed for all of the following EXCEPT - ANSWER -during the annual benefits enrollment period Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account? - ANSWER -variable What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application? - ANSWER -The applicant and possibly the agent initial any changes made. All of the following are features of the spendthrift clause EXCEPT - ANSWER the beneficiary may encumber the proceeds 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 recording the change in its records? - ANSWER -recording method 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? - ANSWER -insuring clause Which of the following is TRUE of an equity-indexed annuity? - ANSWER -It has a guaranteed minimum interest rate. An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary? - ANSWER -common disaster clause Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? - ANSWER -benefits are adjusted to an amount that the premium would have purchased at the correct age or gender All life insurance and health insurance contracts contain all of the following EXCEPT - ANSWER -representation All of the following are classifications of risk EXCEPT - ANSWER -non-nicotine Group AD&D policies may be deducted by whom and under which deduction category? - ANSWER -the employer under business expenses All of the following are tax qualified retirement plans EXCEPT - ANSWER Section 529 plan