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PSI LIFE STUDY GUIDE BRAND
NEW OFFICIAL QUESTIONS WITH
ANSWERS.
1. An intermediary may receive a commission on business written
on the intermediary's own life ONLY if the intermediary - correct
answer -Is a licensed life agent in Wisconsin and has sold
insurance with the same company during the prior year with
total premiums exceeding the premium on the intermediary's
own life
2. A policy summary MUST contain the - correct answer -date on
which the policy summary is prepared
3. Under 18 USC 1033, anyone involved in the business of
insurance by willfully embezzling funds intended for payment of
interstate insurance transactions is subjected to which of the
following penalties? - correct answer -Fine and/or imprisonment
4. A policy may contain provisions excluding or restricting
coverage as specified in the event of death under all of the
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following except - correct answer -a fare-paying passenger
traveling via commercial transport
5. An annuity where the policyowner chooses a pre-determined
number of benefit payments is referred to as - correct answer -
Period Certain
6. Generally, if a life application is NOT prepaid, the effective date
of coverage begins on the date the - correct answer -policy is
delivered and accepted
7. Two business partners own life insurance on each other. If one
partner dies, which of the following contracts allows the
surviving partner to use the death benefit to purchase the
deceased owner's interest? - correct answer -Buy-sell
agreement
8. An insurance policy is a contract of utmost good faith because
the insurer relies on the truthfulness of the applicant and the
insured relies on the insurer's promise to - correct answer -Pay
claims
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9. Which of the following is typically NOT a source of underwriting
information for life or health insurance? - correct answer -
Disclosure authorization response
10. Which statement is NOT a characteristic of a group life
insurance plan? - correct answer -individual underwriting
11. Generally, all of the following apply to group life insurance
EXCEPT - correct answer -evidence of insurability is not
required
12. What does a limited payment whole life policy provide? -
correct answer -Life time protection
13. Loans may generally be obtained against the cash value of a
personal life insurance policy and policy loan proceeds -
correct answer -Are not treated as taxable income
14. The insurance commissioner has the right to issue which of
the following orders? - correct answer -Compliance
PSI LIFE STUDY GUIDE BRAND
NEW OFFICIAL QUESTIONS WITH
ANSWERS.
1. An intermediary may receive a commission on business written
on the intermediary's own life ONLY if the intermediary - correct
answer -Is a licensed life agent in Wisconsin and has sold
insurance with the same company during the prior year with
total premiums exceeding the premium on the intermediary's
own life
2. A policy summary MUST contain the - correct answer -date on
which the policy summary is prepared
3. Under 18 USC 1033, anyone involved in the business of
insurance by willfully embezzling funds intended for payment of
interstate insurance transactions is subjected to which of the
following penalties? - correct answer -Fine and/or imprisonment
4. A policy may contain provisions excluding or restricting
coverage as specified in the event of death under all of the
, Page | 2
following except - correct answer -a fare-paying passenger
traveling via commercial transport
5. An annuity where the policyowner chooses a pre-determined
number of benefit payments is referred to as - correct answer -
Period Certain
6. Generally, if a life application is NOT prepaid, the effective date
of coverage begins on the date the - correct answer -policy is
delivered and accepted
7. Two business partners own life insurance on each other. If one
partner dies, which of the following contracts allows the
surviving partner to use the death benefit to purchase the
deceased owner's interest? - correct answer -Buy-sell
agreement
8. An insurance policy is a contract of utmost good faith because
the insurer relies on the truthfulness of the applicant and the
insured relies on the insurer's promise to - correct answer -Pay
claims
, Page | 3
9. Which of the following is typically NOT a source of underwriting
information for life or health insurance? - correct answer -
Disclosure authorization response
10. Which statement is NOT a characteristic of a group life
insurance plan? - correct answer -individual underwriting
11. Generally, all of the following apply to group life insurance
EXCEPT - correct answer -evidence of insurability is not
required
12. What does a limited payment whole life policy provide? -
correct answer -Life time protection
13. Loans may generally be obtained against the cash value of a
personal life insurance policy and policy loan proceeds -
correct answer -Are not treated as taxable income
14. The insurance commissioner has the right to issue which of
the following orders? - correct answer -Compliance
