PSI Life Exam Questions and Answers 100% Pass
Question 1: What kind of retirement plan can a 75-
employee for profit corporation establish?
CORRECT ANSWER : Simple IRA
Question 2: 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
Question 3: 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
Question 4: 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
Question 5: 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
Question 6: An insurance company may contest a life
policy within a MAXIMUM of how many years after the policy's effective date?
CORRECT ANSWER : 2
Question 7: All of the following factors are used in life
insurance premium determination EXCEPT
CORRECT ANSWER: Morbidity
Question 8: 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
Question 9: 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
Question 10: Dividends are NOT subject to taxation
because
CORRECT ANSWER : Paying dividends is equivalent to
returning a premium
Question 11: 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
Question 12: 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
Question 13: Which of the following guarantees that the
annuitant CANNOT outlive their benefits?
CORRECT ANSWER : Guaranteed lifetime withdrawal
benefit
Question 14: 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?
CORRECT ANSWER : It does not affect the insurance
company's obligations