PSI Practice exam NJ with 100% correct answers
all of the following are ownership rights EXCEPT:
A: changing the beneficiary of the policy
B: borrowing funds against cash value
C: switching the policy from on insured to another
D: assigning all of the rights of the policy to another person - answer C: switching the policy from on insured to another
which of the following is characteristic of a non qualified plan:
A: defined vesting schedule
B: plan established by the employer
C: plan does not meet federal guidelines for tax benefits
D: employer contributions are deductible business expense - answer C: plan does not meet federal guidelines for tax benefits How do warranties differ from representations?A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge B: a representation is guaranteed to be true, a warranty is believed to be true to the best of one's knowledge C: a warranty is issued by the insurer, a representation is a statement provided by the applicant D: an incorrect representation automatically voids a contract, whereas an incorrect warranty must be proven - answer A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge in which of the following must a beneficiary change request be filed in writing to the insurer and is made
effective by the insurance company:
A: designation option
B: recording method 1 / 2
C: endorsement method
D: succession of beneficiaries - answer B: recording method all of the following are required signature on a life insurance application EXCEPT:
A: the agent
B: the applicant
C: the minor in a juvenile policy
D: the proposed insured - answer C: the minor in a juvenile policy
all of the following are features of the spendthrift clause EXCEPT:
A: proceeds are paid in some other way than a single premium
B: proceeds are protected by the insurer from the beneficiary's creditors
C: transfer of proceeds to creditors
D: the beneficiary may encumber the proceeds - answer D: the beneficiary may encumber the proceeds Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying
investment account:
A: deferred
B: fixed
C: immediate
D: variable - answer D: variable
how does the per capita rule apply to proceeds from a life insurance policy:
A: the proceeds are divided equally among living primary beneficiaries
B: the secondary beneficiary receives the proceeds if the primary beneficiary is no longer living
C: the proceeds go to the policyholder's estate when no beneficiary is living
D: the proceeds go to the descendants of the primary beneficiaries - answer A: the proceeds are divided equally among living primary beneficiaries
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