PSI Life Exam 2026 Questions and
Answers
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
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
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,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
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
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, 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
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
In Wisconsin, an "intermediary" is defined as a representative of: - Correct answer-
A Solicitor
All of the following statements regarding a group annuity are correct EXCEPT -
Correct answer-Each employee signs and receives an individual contract
Statements by an application concerning personal health history, family health
history, occupation, and hobbies are referred to as - Correct answer-
Representations
Which of the following entities is responsible for notifying an insurance company
of a disability insurance claim? - Correct answer-1. Insured
2. Insured's physician
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Answers
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
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,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
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, 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
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
In Wisconsin, an "intermediary" is defined as a representative of: - Correct answer-
A Solicitor
All of the following statements regarding a group annuity are correct EXCEPT -
Correct answer-Each employee signs and receives an individual contract
Statements by an application concerning personal health history, family health
history, occupation, and hobbies are referred to as - Correct answer-
Representations
Which of the following entities is responsible for notifying an insurance company
of a disability insurance claim? - Correct answer-1. Insured
2. Insured's physician
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
