PSI Life Insurance Test (solved) Questions and Answers 2024.

PSI Life Insurance Test (solved) 202 4 Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit? - ANSWER -variable universal life 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? - ANSWER -Joint and survivorship option 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 What is the order in which beneficiaries receive proceeds from a life insurance policy? - ANSWER -succession of beneficiaries 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 exempted from the incontestability provision in insurance policies? - ANSWER -fraudulent misstatements What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one? - ANSWER -insured original age is used 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.