PSI LIFE EXAM Q AND A
Whatvykindvyofvyretirementvyplanvycanvyavy75-
employeevyforvyprofitvycorporationvyestablish?vy-vyanswer--SimplevyIRA
Thevytaxablevyportionvyofvyavymonthlyvyincomevybenefitvypaidvyduringvythevyannuityvyphasev
yfromvyavynonqualifiedvyannuityvyisvycalculatedvyusingvythevy-vyanswer--Exclusionvyratio
Unfairvyclaimsvysettlementvymethodsvyandvypracticesvybyvyanvyinsurancevycompanyvyinclu
devyallvyofvythevyfollowingvyactsvyEXCEPTvy-vyanswer--
failurevytovypayvyallvyclaimsvythatvyarevyreportedvywithinvy90vydaysvyaftervyavylossvyoccurs
Thevysettlementvyoptionvythatvyallowsvyproceedsvytovyremainvywithvythevyinsurervyandvythevy
earningsvytovybevypaidvytovythevybeneficiaryvyonvyavymonthlyvybasisvyisvycalledvy-vyanswer--
Interestvyonly
Regulationsvyonvylifevyinsurancevyadvertisingvyapplyvytovywhichvyofvythevyfollowingvyinsuran
cevycompanyvymaterials?vy-vyanswer--
Avyradiovycommercialvythatvypromotesvythevybenefitsvyofvyavyspecificvycompany'svylifevyinsu
rancevyproducts
AnvyinsurancevycompanyvymayvycontestvyavylifevypolicyvywithinvyavyMAXIMUMvyofvyhowvym
anyvyyearsvyaftervythevypolicy'svyeffectivevydate?vy-vyanswer--2
AllvyofvythevyfollowingvyfactorsvyarevyusedvyinvylifevyinsurancevypremiumvydeterminationvyEX
CEPTvy-vyanswer--Morbidity
Thevyauthorizationvyusedvytovyobtainvythevyapplicant'svymedicalvyinformationvythatvywillvybev
yusedvybyvythevyinsurervyforvythevyprimaryvypurposevyofvydeterminingvyeligibilityvymustvyinclu
de:vy-vyanswer--
thevytimevyframevyinvywhichvythevyinsurervymustvyreleasevythevyeligibilityvydecisionvytovythevy
agent
Anvyintermediaryvywhovyomitsvyinformationvyonvyanvyinsurancevyapplicationvywithoutvythevy
applicant'svyknowledgevyandvysubmitsvythevyapplicationvytovythevyinsurervymayvybevyguiltyvy
of:vy-vyanswer--Misrepresentation
DividendsvyarevyNOTvysubjectvytovytaxationvybecausevy-vyanswer--
Payingvydividendsvyisvyequivalentvytovyreturningvyavypremium
ThevyXYZvyInsurancevyCompanyvycancelsvyanvyintermediary'svycontract.vyXYZvycouldvybev
yboundvybyvythevyintermediary'svylatervyactsvyifvyit:vy-vyanswer--
Continuesvytovypayvythevyintermediaryvydeferredvycommissions
Whichvyofvythevyfollowingvyproductsvyisvydesignedvytovypayvybenefitsvythatvycanvyprovidevyavy
streamvyofvyretirementvyincomevytovythevypurchaser?vy-vyanswer--tax-deferredvygrowth
, WhichvyofvythevyfollowingvyguaranteesvythatvythevyannuitantvyCANNOTvyoutlivevytheirvyben
efits?vy-vyanswer--Guaranteedvylifetimevywithdrawalvybenefit
WhichvyofvythevyfollowingvystatementsvyisvyCORRECTvyaboutvyanvyinsured'svyfailurevytovyre
portvyavyclaimvyinvyavytimelyvymannervybasedvyonvythevyadvicevyofvyanvyintermediary?vy-
vyanswer--Itvydoesvynotvyaffectvythevyinsurancevycompany'svyobligations
InvyWisconsin,vyanvy"intermediary"vyisvydefinedvyasvyavyrepresentativevyof:vy-vyanswer--
AvySolicitor
AllvyofvythevyfollowingvystatementsvyregardingvyavygroupvyannuityvyarevycorrectvyEXCEPTvy-
vyanswer--Eachvyemployeevysignsvyandvyreceivesvyanvyindividualvycontract
Statementsvybyvyanvyapplicationvyconcerningvypersonalvyhealthvyhistory,vyfamilyvyhealthvyh
istory,vyoccupation,vyandvyhobbiesvyarevyreferredvytovyasvy-vyanswer--Representations
Whichvyofvythevyfollowingvyentitiesvyisvyresponsiblevyforvynotifyingvyanvyinsurancevycompan
yvyofvyavydisabilityvyinsurancevyclaim?vy-vyanswer--1.vyInsured
2.vyInsured'svyphysician
AnvyinsurervymayvycancelvyavypolicyvymidtermvyforvyallvyofvythevyfollowingvyreasonsvyEXCEP
Tvywhenvythevyinsured:vy-vyanswer--Hasvyavychangevyinvymaritalvystatus
Anvyacceleratedvydeathvybenefitvy-vyanswer--
Paysvyavyportionvyofvythevyfacevyamountvywhenvyavypolicyownervyisvydeterminedvytovybevyter
minallyvyill
Uponvyannuitization,vywhichvyofvythevyfollowingvywillvyhavevythevyHIGHESTvymonthlyvypayo
ut?vy-vyanswer--StraightvyLife
Backdatingvyonvyavylifevyinsurancevypolicyvyisvythevypracticevyofvy-vyanswer--
Makingvythevypolicyvyeffectivevyonvyanvyearliervydatevythenvythevypresent
Wisconsinvyinsurancevylawvyrequiresvyintermediariesvytovykeepvypolicyholdervyrecordsvyfo
rvyatvyleastvyhowvymanyvyyearsvyaftervyterminationvyorvylapsevyofvythevypolicy?vy-vyanswer--3
Whenvyunderwritingvygroupvylifevyinsurance,vythevyunderwritervy-vyanswer--
Typicallyvyevaluatesvythevygroupvyasvyavywhole
Whenvyusingvythevyneedsvyapproachvytovydeterminevythevyamountvyofvylifevyinsurancevynee
ded,vyitvyisvynecessaryvytovydeterminevyallvyofvythevyfollowingvyEXCEPTvy-vyanswer--
projectvylifetimevyearningsvyinvythevystockvymarket,vyincludingvydividendsvyandvygrowthvyac
count
Whichvyofvythevyfollowingvyisvypermittedvyundervythevypropervyexchangevyofvybusiness?vy-
vyanswer--
Splittingvyavycommissionvybetweenvytwovyintermediariesvylicensedvyinvythevysamevylinevyofv
yinsurance
Whatvykindvyofvyretirementvyplanvycanvyavy75-
employeevyforvyprofitvycorporationvyestablish?vy-vyanswer--SimplevyIRA
Thevytaxablevyportionvyofvyavymonthlyvyincomevybenefitvypaidvyduringvythevyannuityvyphasev
yfromvyavynonqualifiedvyannuityvyisvycalculatedvyusingvythevy-vyanswer--Exclusionvyratio
Unfairvyclaimsvysettlementvymethodsvyandvypracticesvybyvyanvyinsurancevycompanyvyinclu
devyallvyofvythevyfollowingvyactsvyEXCEPTvy-vyanswer--
failurevytovypayvyallvyclaimsvythatvyarevyreportedvywithinvy90vydaysvyaftervyavylossvyoccurs
Thevysettlementvyoptionvythatvyallowsvyproceedsvytovyremainvywithvythevyinsurervyandvythevy
earningsvytovybevypaidvytovythevybeneficiaryvyonvyavymonthlyvybasisvyisvycalledvy-vyanswer--
Interestvyonly
Regulationsvyonvylifevyinsurancevyadvertisingvyapplyvytovywhichvyofvythevyfollowingvyinsuran
cevycompanyvymaterials?vy-vyanswer--
Avyradiovycommercialvythatvypromotesvythevybenefitsvyofvyavyspecificvycompany'svylifevyinsu
rancevyproducts
AnvyinsurancevycompanyvymayvycontestvyavylifevypolicyvywithinvyavyMAXIMUMvyofvyhowvym
anyvyyearsvyaftervythevypolicy'svyeffectivevydate?vy-vyanswer--2
AllvyofvythevyfollowingvyfactorsvyarevyusedvyinvylifevyinsurancevypremiumvydeterminationvyEX
CEPTvy-vyanswer--Morbidity
Thevyauthorizationvyusedvytovyobtainvythevyapplicant'svymedicalvyinformationvythatvywillvybev
yusedvybyvythevyinsurervyforvythevyprimaryvypurposevyofvydeterminingvyeligibilityvymustvyinclu
de:vy-vyanswer--
thevytimevyframevyinvywhichvythevyinsurervymustvyreleasevythevyeligibilityvydecisionvytovythevy
agent
Anvyintermediaryvywhovyomitsvyinformationvyonvyanvyinsurancevyapplicationvywithoutvythevy
applicant'svyknowledgevyandvysubmitsvythevyapplicationvytovythevyinsurervymayvybevyguiltyvy
of:vy-vyanswer--Misrepresentation
DividendsvyarevyNOTvysubjectvytovytaxationvybecausevy-vyanswer--
Payingvydividendsvyisvyequivalentvytovyreturningvyavypremium
ThevyXYZvyInsurancevyCompanyvycancelsvyanvyintermediary'svycontract.vyXYZvycouldvybev
yboundvybyvythevyintermediary'svylatervyactsvyifvyit:vy-vyanswer--
Continuesvytovypayvythevyintermediaryvydeferredvycommissions
Whichvyofvythevyfollowingvyproductsvyisvydesignedvytovypayvybenefitsvythatvycanvyprovidevyavy
streamvyofvyretirementvyincomevytovythevypurchaser?vy-vyanswer--tax-deferredvygrowth
, WhichvyofvythevyfollowingvyguaranteesvythatvythevyannuitantvyCANNOTvyoutlivevytheirvyben
efits?vy-vyanswer--Guaranteedvylifetimevywithdrawalvybenefit
WhichvyofvythevyfollowingvystatementsvyisvyCORRECTvyaboutvyanvyinsured'svyfailurevytovyre
portvyavyclaimvyinvyavytimelyvymannervybasedvyonvythevyadvicevyofvyanvyintermediary?vy-
vyanswer--Itvydoesvynotvyaffectvythevyinsurancevycompany'svyobligations
InvyWisconsin,vyanvy"intermediary"vyisvydefinedvyasvyavyrepresentativevyof:vy-vyanswer--
AvySolicitor
AllvyofvythevyfollowingvystatementsvyregardingvyavygroupvyannuityvyarevycorrectvyEXCEPTvy-
vyanswer--Eachvyemployeevysignsvyandvyreceivesvyanvyindividualvycontract
Statementsvybyvyanvyapplicationvyconcerningvypersonalvyhealthvyhistory,vyfamilyvyhealthvyh
istory,vyoccupation,vyandvyhobbiesvyarevyreferredvytovyasvy-vyanswer--Representations
Whichvyofvythevyfollowingvyentitiesvyisvyresponsiblevyforvynotifyingvyanvyinsurancevycompan
yvyofvyavydisabilityvyinsurancevyclaim?vy-vyanswer--1.vyInsured
2.vyInsured'svyphysician
AnvyinsurervymayvycancelvyavypolicyvymidtermvyforvyallvyofvythevyfollowingvyreasonsvyEXCEP
Tvywhenvythevyinsured:vy-vyanswer--Hasvyavychangevyinvymaritalvystatus
Anvyacceleratedvydeathvybenefitvy-vyanswer--
Paysvyavyportionvyofvythevyfacevyamountvywhenvyavypolicyownervyisvydeterminedvytovybevyter
minallyvyill
Uponvyannuitization,vywhichvyofvythevyfollowingvywillvyhavevythevyHIGHESTvymonthlyvypayo
ut?vy-vyanswer--StraightvyLife
Backdatingvyonvyavylifevyinsurancevypolicyvyisvythevypracticevyofvy-vyanswer--
Makingvythevypolicyvyeffectivevyonvyanvyearliervydatevythenvythevypresent
Wisconsinvyinsurancevylawvyrequiresvyintermediariesvytovykeepvypolicyholdervyrecordsvyfo
rvyatvyleastvyhowvymanyvyyearsvyaftervyterminationvyorvylapsevyofvythevypolicy?vy-vyanswer--3
Whenvyunderwritingvygroupvylifevyinsurance,vythevyunderwritervy-vyanswer--
Typicallyvyevaluatesvythevygroupvyasvyavywhole
Whenvyusingvythevyneedsvyapproachvytovydeterminevythevyamountvyofvylifevyinsurancevynee
ded,vyitvyisvynecessaryvytovydeterminevyallvyofvythevyfollowingvyEXCEPTvy-vyanswer--
projectvylifetimevyearningsvyinvythevystockvymarket,vyincludingvydividendsvyandvygrowthvyac
count
Whichvyofvythevyfollowingvyisvypermittedvyundervythevypropervyexchangevyofvybusiness?vy-
vyanswer--
Splittingvyavycommissionvybetweenvytwovyintermediariesvylicensedvyinvythevysamevylinevyofv
yinsurance
