PSI Life Insurance Test (solved)
1. Which annuity settlement option provides a stated monthly
amount to the
annuitant and upon the annuitant?s death the same or a lesser
amount paid for the lifetime of the survivor?: Joint and survivorship
option
2. Joint and survivorship option: It has a guaranteed
minimum interest rate.
3. Which of the following is TRUE for a flexible premium
annuity?: The purchaser has the option to vary the amount of each premium payment
falling between a minimum and maximum amount.
4. Which of the following lists the three common types of
permanent individual life insurance?: Variable Life, Whole Life, Universal
Life
5. Which of the following is TRUE of the limited pay whole
life policy?: Coverage continues after the policy is paid-up.
6. Which of the following term insurance types provides
temporary protection that can be changed to some type of
permanent protection without evidence of insurability?: convertible
, 7. Which policy type is backed by equity investments and allows
the policyholder to adjust the death benefit?: variable universal life
8. Which whole life policy premium type is the most common?:
continuous premium
9. Current assumption whole life policies are sensitive to
which of the follow- ing?: interest rates
10. In a level term life policy, which ALWAYS remains
constant?: death benefit
11. Which of the following is common in an increasing term
life policy?: It begins with little or no insurance protection.
12. Which type of annuity attempts to offset inflation by
providing a benefit linked to an underlying investment
account?: variable
13. Group AD&D policies may be deducted by whom and under
which deduction category?: the employer under business expenses
14. In order to AVOID being classified as an MEC, a policy must
pass which of the following?: seven-pay test
15. Why is relying solely on employer group life insurance
generally considered inadequate for most individual's needs?: It
is financially insufficient to cover end of life expenses.
1. Which annuity settlement option provides a stated monthly
amount to the
annuitant and upon the annuitant?s death the same or a lesser
amount paid for the lifetime of the survivor?: Joint and survivorship
option
2. Joint and survivorship option: It has a guaranteed
minimum interest rate.
3. Which of the following is TRUE for a flexible premium
annuity?: The purchaser has the option to vary the amount of each premium payment
falling between a minimum and maximum amount.
4. Which of the following lists the three common types of
permanent individual life insurance?: Variable Life, Whole Life, Universal
Life
5. Which of the following is TRUE of the limited pay whole
life policy?: Coverage continues after the policy is paid-up.
6. Which of the following term insurance types provides
temporary protection that can be changed to some type of
permanent protection without evidence of insurability?: convertible
, 7. Which policy type is backed by equity investments and allows
the policyholder to adjust the death benefit?: variable universal life
8. Which whole life policy premium type is the most common?:
continuous premium
9. Current assumption whole life policies are sensitive to
which of the follow- ing?: interest rates
10. In a level term life policy, which ALWAYS remains
constant?: death benefit
11. Which of the following is common in an increasing term
life policy?: It begins with little or no insurance protection.
12. Which type of annuity attempts to offset inflation by
providing a benefit linked to an underlying investment
account?: variable
13. Group AD&D policies may be deducted by whom and under
which deduction category?: the employer under business expenses
14. In order to AVOID being classified as an MEC, a policy must
pass which of the following?: seven-pay test
15. Why is relying solely on employer group life insurance
generally considered inadequate for most individual's needs?: It
is financially insufficient to cover end of life expenses.
