PSI LIFE EXAM LATEST 2023-2024 REAL
EXAM 100+ QUESTIONS AND CORRECT
ANSWERS|AGRADE
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:
- 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: –
ANSWER- Misrepresentation
Dividends are NOT subject to taxation because – 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: – 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? – ANSWER- tax-deferred growth
Which of the following guarantees that the annuitant CANNOT outlive their
benefits? – 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? –
ANSWER- It does not affect the insurance company’s obligations
In Wisconsin, an “intermediary” is defined as a representative of: – ANSWER- A
Solicitor
All of the following statements regarding a group annuity are correct EXCEPT –
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 – ANSWER- Representations
Which of the following entities is responsible for notifying an insurance company
of a disability insurance claim? – ANSWER- 1. Insured
- Insured’s physician
An insurer may cancel a policy midterm for all of the following reasons EXCEPT
when the insured: – ANSWER- Has a change in marital status
An accelerated death benefit – 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? – ANSWER- Straight Life
Backdating on a life insurance policy is the practice of – 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? – ANSWER- 3
When underwriting group life insurance, the underwriter – 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 – 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? –
ANSWER- Splitting a commission between two intermediaries licensed in the
same line of insurance
What kind of retirement plan can a 75-employee for profit corporation establish? –
ANSWER- Simple IRA
The taxable portion of a monthly income benefit paid during the annuity phase
from a nonqualified annuity is calculated using the – ANSWER- Exclusion ratio