PSI Life Exam Questions & Answers
2023 / 2024
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
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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 2 / 3
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
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