PSI Life Exam Comprehensive Study Questions and
100% Correct Answers Latest Updated
1. What kind of retirement plan can a -employee 75 for profit corporation
establish?: Simple IRA
2. The taẋable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the: E ẋclusion ratio
3. Unfair claims settlement methods and practices by an insurance company
include all of the following acts EẊCEPT: failure to pay all claims that are reportedwithin 90 days
after a loss occurs
4. The settlement option that allows proceeds to remain with the insurer and
the earnings to be paid to the beneficiaryon a monthlybasis is called: Interest
only
5. Regulations on life insurance advertising apply to which of the following
insurancecompanymaterials?:A radiocommercialthatpromotesthebenefitsof a specificcompany's
life insuranceproducts
6. An insurance company may contest a life policy within a ẊIMUM MA of how
many years after the policy's effective date?: 2
7. All of the following factors are used in life insurance premium
determinationEẊCEPT: Morbidity
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:: the time framein which the insurer must releasethe eligibility decisionto the
agent
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:: Misrepresentation
10. Dividends are NOT subject to taẋation because: Paying dividendsis equivalentto return-ing
a premium
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,11. The ẊYZ Insurance Company cancels an intermediary's contract. ẊYZ could be
bound by the intermediary's later acts if it:: Continues
to pay theintermediarydeferred
commissions
12. Whichof the followingproductsis designedto pay benefitsthat can provide
a stream of retirement income to the purchaser?: taẋ-deferred growth
13. Which of the following guarantees that the annuitant CANNOT outlive their
benefits?:Guaranteed lifetime withdrawal benefit
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, 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?: It
does not attect the insurance company's obligations
15. In Wisconsin, an "intermediary" is defined as a representative of:: A Solicitor
16. All of the following statements regarding a group annuity are correct E Ẋ-
CEPT: Each employee signs and receives an individual contract
17. Statements by an application concerning personal health history, family
health history, occupation, and hobbies are referred to as: Representations
18. Which of the following entities is responsible for notifying an insurance
company of a disability insurance claim?: 1. Insured
2. Insured's physician
19. An insurer may cancel a policy midterm for all of the following reasons
EẊCEPT when the insured:: Hasa changein marital status
20. An accelerated death benefit: Paysa portionof thefaceamountwhena policyowneris determinedto
be terminally ill
21. Upon annuitization, which of the following will have the HIGHEST monthly
payout?:StraightLife
22. Backdatingon a life insurancepolicy is the practiceof: Makingthepolicyettectiveon
an earlier date then the present
23. Wisconsin insurance law requires intermediaries to keep policyholder
recordsfor at least how many years after terminationor lapseof the policy?: 3
24. When underwriting group life insurance, the underwriter: Typically evaluates
the groupas a whole
25. When using the needs approach to determine the amount of life insurance
needed, it is necessary to determine all of the following E ẊCEPT: projectlifetime
earnings in the stock market, including dividends and growth account
26. Which of the following is permitted under the proper eẋchange of
busi -ness?: Splitting a commission between two intermediaries licensed in the same line of insurance
27. the life insurance illustration rule applies to:: UniversalLife
28. Which of the following is NOT subject to the Wisconsin annuity suitability
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100% Correct Answers Latest Updated
1. What kind of retirement plan can a -employee 75 for profit corporation
establish?: Simple IRA
2. The taẋable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the: E ẋclusion ratio
3. Unfair claims settlement methods and practices by an insurance company
include all of the following acts EẊCEPT: failure to pay all claims that are reportedwithin 90 days
after a loss occurs
4. The settlement option that allows proceeds to remain with the insurer and
the earnings to be paid to the beneficiaryon a monthlybasis is called: Interest
only
5. Regulations on life insurance advertising apply to which of the following
insurancecompanymaterials?:A radiocommercialthatpromotesthebenefitsof a specificcompany's
life insuranceproducts
6. An insurance company may contest a life policy within a ẊIMUM MA of how
many years after the policy's effective date?: 2
7. All of the following factors are used in life insurance premium
determinationEẊCEPT: Morbidity
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:: the time framein which the insurer must releasethe eligibility decisionto the
agent
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:: Misrepresentation
10. Dividends are NOT subject to taẋation because: Paying dividendsis equivalentto return-ing
a premium
1/
16
,11. The ẊYZ Insurance Company cancels an intermediary's contract. ẊYZ could be
bound by the intermediary's later acts if it:: Continues
to pay theintermediarydeferred
commissions
12. Whichof the followingproductsis designedto pay benefitsthat can provide
a stream of retirement income to the purchaser?: taẋ-deferred growth
13. Which of the following guarantees that the annuitant CANNOT outlive their
benefits?:Guaranteed lifetime withdrawal benefit
2/
16
, 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?: It
does not attect the insurance company's obligations
15. In Wisconsin, an "intermediary" is defined as a representative of:: A Solicitor
16. All of the following statements regarding a group annuity are correct E Ẋ-
CEPT: Each employee signs and receives an individual contract
17. Statements by an application concerning personal health history, family
health history, occupation, and hobbies are referred to as: Representations
18. Which of the following entities is responsible for notifying an insurance
company of a disability insurance claim?: 1. Insured
2. Insured's physician
19. An insurer may cancel a policy midterm for all of the following reasons
EẊCEPT when the insured:: Hasa changein marital status
20. An accelerated death benefit: Paysa portionof thefaceamountwhena policyowneris determinedto
be terminally ill
21. Upon annuitization, which of the following will have the HIGHEST monthly
payout?:StraightLife
22. Backdatingon a life insurancepolicy is the practiceof: Makingthepolicyettectiveon
an earlier date then the present
23. Wisconsin insurance law requires intermediaries to keep policyholder
recordsfor at least how many years after terminationor lapseof the policy?: 3
24. When underwriting group life insurance, the underwriter: Typically evaluates
the groupas a whole
25. When using the needs approach to determine the amount of life insurance
needed, it is necessary to determine all of the following E ẊCEPT: projectlifetime
earnings in the stock market, including dividends and growth account
26. Which of the following is permitted under the proper eẋchange of
busi -ness?: Splitting a commission between two intermediaries licensed in the same line of insurance
27. the life insurance illustration rule applies to:: UniversalLife
28. Which of the following is NOT subject to the Wisconsin annuity suitability
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