PSI Life Exam /PSI Life

PSI Life Exam /PSI Life Exam Questions and Answers GRADED A What kind of retirement plan can a 75-employee for profit corporation establish? - Correct answer-Simple IRA The taxable portion of a monthly income benefit paid during the annuity phase from a nonqualified annuity is calculated using the - Correct answer-Exclusion ratio Unfair claims settlement methods and practices by an insurance company include all of the following acts EXCEPT - Correct answer-failure to pay all claims that are reported within 90 days after a loss occurs The settlement option that allows proceeds to remain with the insurer and the earnings to be paid to the beneficiary on a monthly basis is called - Correct answer-Interest only Regulations on life insurance advertising apply to which of the following insurance company materials? - Correct answer-A radio commercial that promotes the benefits of a specific company's life insurance products An insurance company may contest a life policy within a MAXIMUM of how many years after the policy's effective date? - Correct answer-2 All of the following factors are used in life insurance premium determination EXCEPT - Correct answer-Morbidity The authorization used to obtain the applicant's medical information that will be used by the insurer for the primary purpose of determining eligibility must include: - Correct answer-the time frame in which the insurer must release the eligibility decision to the agent An intermediary who omits information on an insurance application without the applicant's knowledge and submits the application to the insurer may be guilty of: - Correct answer-Misrepresentation Dividends are NOT subject to taxation because - Correct answer-Paying dividends is equivalent to returning a premium The XYZ Insurance Company cancels an intermediary's contract. XYZ could be bound by the intermediary's later acts if it: - Correct answer-Continues to pay the intermediary deferred commissions Which of the following products is designed to pay benefits that can provide a stream of retirement income to the purchaser? - Correct answer-tax-deferred growth Which of the following guarantees that the annuitant CANNOT outlive their benefits? - Correct answer-Guaranteed lifetime withdrawal benefit Which of the following statements is CORRECT about an insured's failure to report a claim in a timely manner based on the advice of an intermediary? - Correct answer-It does not affect the insurance company's obligations In Wisconsin, an "intermediary" is defined as a representative of: - Correct answer-A Solicitor All of the following statements regarding a group annuity are correct EXCEPT - Correct answer-Each employee signs and receives an individual contract Statements by an application concerning personal health history, family health history, occupation, and hobbies are referred to as - Correct answer-Representations Which of the following entities is responsible for notifying an insurance company of a disability insurance claim? - Correct answer-1. Insured 2. Insured's physician An insurer may cancel a policy midterm for all of the following reasons EXCEPT when the insured: - Correct answer-Has a change in marital status An accelerated death benefit - Correct answer-Pays a portion of the face amount when a policyowner is determined to be terminally ill Upon annuitization, which of the following will have the HIGHEST monthly payout? - Correct answer-Straight Life Backdating on a life insurance policy is the practice of - Correct answer-Making the policy effective on an earlier date then the present Wisconsin insurance law requires intermediaries to keep policyholder records for at least how many years after termination or lapse of the policy? - Correct answer-3 When underwriting group life insurance, the underwriter - Correct answer-Typically evaluates the group as a whole When using the needs approach to determine the amount of life insurance needed, it is necessary to determine all of the following EXCEPT - Correct answer-project lifetime earnings in the stock market, including dividends and growth account Which of the following is permitted under the proper exchange of business? - Correct answer-Splitting a commission between two intermediaries licensed in the same line of insurance