CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam Questions and Answers (Latest update)

CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam Questions and Answers (Latest update)
Question 1: Assume two people apply for life insurance with
exactly the same monthly premiums. One individual buys a
whole life policy, and the other, a 10-year renewable term
plan. Both are standard risks with no difference in their age or
health rating. Select the statement from below which is false.
C. The 10-year renewable term contract will have a premium
increase every 10 years while the whole life policy premium
remains level.
D. The whole life policy will pay a higher amount to the
beneficiary should the insured die within the first 10 years
CORRECT ANSWER: D
Question 2: An annuity which may be used to help fund
retirement in a few years maintains a "separate account". the
owner purchases "accumulation units". This is called a ____
annuity

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