PA LIFE PRACTICE EXAM FROM PSI EXAM QUESTIONS

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PA LIFE PRACTICE EXAM FROM PSI (1) EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

1.It is financially insufficient to cover end of life expenses.

2.It is meant to cover funeral expenses only.

3.It does not pay off the insured's mortgage.

4.It is based on salary amounts that are too low.

Answer:

1.It is financially insufficient to cover end of life expenses.Question 2: Which of the following is TRUE of the limited pay whole life policy?

1.Coverage ends when the policy is paid-up.

2.Coverage continues after the policy is paid-up.

3.Premium payments increase as the insured ages.

4.Premium payments are lower than continuous premium whole life.

Answer:

2.Coverage continues after the policy is paid-up.Question 3: All life insurance and health insurance contracts contain all of the following

EXCEPT

1.Policy face 2.Insuring clause 3.Conditions 4.Representations

Answer:

4.Representations Question 4: Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

1.the application is considered fraudulent and no benefits are paid.

2.the proceeds of the policy must be determined by a probate court proceeding 3.if the death is two years after originally policy purchase, complete benefits are paid 4.benefits are adjusted to an amount that the premium would have purchased at the correct age or gender

Answer:

4.benefits are adjusted to an amount that the premium would have purchased at the correct age or gende

Question 5: Which of the following is TRUE for a flexible premium annuity?

1.The actual amount of the annuity benefit is determined in advance.

2.A single set amount premium is paid by the annuitant on an annual basis.

3.The company promises to pay the annuitant an amount each period beginning after a single lump sum payment.

4.The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.

Answer:

4.The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.Question 6: 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?

1.conditions 2.policy title page 3.insuring clause 4.definitions

Answer:

3.insuring clause

Question 7: Which of the following is common in an increasing term life policy?

1.Insurance protection decreases over time.

2.The premium increases over time.

3.It begins with little or no insurance protection.

4.It is used as mortgage credit insurance.

Answer:

3.It begins with little or no insurance protection.Question 8: Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

1.USA Patriot Act 2.Fair Credit Reporting Act 3.State laws where the applicant resides 4.Securities and Exchange Commission

Answer:

2.Fair Credit Reporting Act

Question 9: What is the purpose of Stranger-originated life insurance (STOLI)?

1.the policy is originated primarily or solely for the purpose of resale 2.the policy is written so as to avoid proof of insurable interest