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PSI LIFE EXAM
Qs and Ans - Expert- Explanation - ing score -100 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Who is allowed to make changes to a life insurance contact terms?
Answer:
An officer of the company Question 2: The accumulated cash value of a whole life insurance policy becomes the
Answer:
amount used to purchase paid up additions to the insured's policy Question 3: All of the following statements regarding a group annuity are correct EXCEPT
Answer:
Each employee signs and receives an individual contract
Question 4: An intermediary may receive a commission on business written on the
intermediary's own life ONLY if the intermediary
Answer:
Is a licensed life agent in Wisconsin and has sold insurance with the same company during the prior year with total premiums exceeding the premium on the intermediary's own life Question 5: Which type of insurance policy is characterized by premiums that are fully paid-up within a stated period, after which no further premiums are REQUIRED?
Answer:
Limited payment life insurance
Question 6: Which rider would allow additional insurance to be purchased at specified dates of events, without additional underwriting?
Answer:
insurability Question 7: What is it called when an insurer writes only insureds who have known risks ?
Answer:
Predictable loss Question 8: 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 Question 9: Insurance applications with an AVERAGE life expectancy without higher than normal risk factors are considered which type of risk?
Answer:
Standard
Question 10: Who can surrender an annuity during the accumulation period?
Answer:
the policyowner Question 11: An insured has a policy with a cash value of $1,500 and an outstanding loan of $500. How much money will the insured receive under the cash surrender value option?
Answer:
$1,500 or $1,000 Question 12: Which of the following is NOT subject to the Wisconsin annuity suitability law?
Answer:
Fixed settlement options Question 13: An insurance company may contest a life policy within a MAXIMUM of how many years after the policy's effective date?
Answer:
2
Question 14: An life insurance policy is required to contain which of the following provisions?
Answer:
A reinstatement provision during which the interest may be charge for late payments Question 15: Which of the following policies allows the policyowner to change two policy features?
Answer:
Adjustable Life Question 16: 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 Question 17: An annuity where the policyowner chooses a pre-determined number of benefit payments is referred to as
Answer:
Period Certain
Question 18: When underwriting group life insurance, the underwriter
Answer:
Typically evaluates the group as a whole Question 19: 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
Answer:
Interest only Question 20: The taxable portion of a monthly income benefit paid during the annuity phase from a nonqualified annuity is calculated using the
Answer:
Exclusion ratio
Question 21: Keogh (HR 10) plans were designed to provide retirement benefits for
Answer:
Self-employed individuals Question 22: A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of the following except
Answer:
a fare-paying passenger traveling via commercial transport
Question 23: The insurance security fund protects insureds from an insurer's
Answer:
liquidation Question 24: A contract in which the company would be legally obligated to perform is considered
Answer:
conditional
Question 25: Which of the following is an element of insurable risks?
Answer:
the loss must be calculable Question 26: Unfair claims settlement methods and practices by an insurance company include all of the following acts EXCEPT
Answer:
failure to pay all claims that are reported within 90 days after a loss occurs Question 27: Which of the following guarantees that the annuitant CANNOT outlive their benefits?
Answer:
lifetime withdrawal benefit Question 28: If Term Life is renewable, the policyowner is purchasing the right to renew the policy
Answer:
without showing proof of insurability
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