PSI Life Insurance Test (solved) Questions and Answers
Question : Which of the following entities is responsible for
notifying an insurance company of a disability insurance claim?
Insured
Insured's physician
Correct answer: 1. Insured
Question : Which of the following is permitted under the
proper exchange of business?Splitting a commission between two intermediaries licensed in the same line of insurance
Correct answer: Splitting a commission between two
intermediaries licensed in the same line of insurance
Question : Which of the following authorities is required to
examine the business records of domestic insurance
companies and licensed rate-services organizations in Wisconsin?The Office of commissioner of insurance
Correct answer: The Office of commissioner of insurance
Question : In Wisconsin the intermediary holding which of
the following licenses is exempt from continuing education requirements?credit insurance
Correct answer: credit insurance
Question : An insurance company is deemed to know any
facts material to a risk in which of the following situations?An intermediary learns of a material fact when delivering the policy
Correct answer: An intermediary learns of a material fact
when delivering the policy
Question : 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?$1,500 or $1,000
Correct answer: $1,500 or $1,000
Question : Under 18 USC 1033, anyone involved in the
business of insurance by willfully embezzling funds intended for payment of interstate insurance transactions is subjected to which of the following penalties?Fine and/or imprisonment
Correct answer: Fine and/or imprisonment
Question : A policy may contain provisions excluding or
restricting coverage as specified in the event of death under all of the following except a fare-paying passenger traveling via commercial transport
Correct answer: a fare-paying passenger traveling via
commercial transport
Question : Which of the following is typically NOT a source
of underwriting information for life or health insurance?Disclosure authorization response
Correct answer: Disclosure authorization response
Question : Generally, all of the following apply to group life
insurance EXCEPT evidence of insurability is not required
Correct answer: evidence of insurability is not required
Question : Under an executive bonus plan, if the employee
takes loans from the insurance policy, the funds are:
Reported as taxable income to the employee
Correct answer: Reported as taxable income to the employee
Question : An example of a risk that is NOT a pure risk would
be injury in an accident