PSI LIFE EXAM | QUESTIONS AND ANSWERS | VERIFIED ANSWERS
GRADED A+ | LATEST EXAM
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
the life insurance illustration rule applies to: - CORRECT ANSWER -
Universal Life
Which of the following is NOT subject to the Wisconsin annuity suitability law?
- CORRECT ANSWER - Fixed settlement options
Without written consent, a policyowner CANNOT change the beneficiary if he
has named - CORRECT ANSWER - An irrevocable beneficiary
What element of a contract does the application represent? - CORRECT
ANSWER - Offer
An life insurance policy is required to contain which of the following
provisions? - CORRECT ANSWER - A reinstatement provision during which
the interest may be charge for late payments
In which of the following fixed annuity features is the surrender value tied to
interest rates? - CORRECT ANSWER - Market value adjustments
Which of the following policies allows for partial surrender? - CORRECT
ANSWER - Universal Life
GRADED A+ | LATEST EXAM
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
the life insurance illustration rule applies to: - CORRECT ANSWER -
Universal Life
Which of the following is NOT subject to the Wisconsin annuity suitability law?
- CORRECT ANSWER - Fixed settlement options
Without written consent, a policyowner CANNOT change the beneficiary if he
has named - CORRECT ANSWER - An irrevocable beneficiary
What element of a contract does the application represent? - CORRECT
ANSWER - Offer
An life insurance policy is required to contain which of the following
provisions? - CORRECT ANSWER - A reinstatement provision during which
the interest may be charge for late payments
In which of the following fixed annuity features is the surrender value tied to
interest rates? - CORRECT ANSWER - Market value adjustments
Which of the following policies allows for partial surrender? - CORRECT
ANSWER - Universal Life
