PSI Life Exam NEWEST 2025-2026 COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
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
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
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
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
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED
A+||BRAND NEW VERSION!!
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
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
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
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
