PSI Life Exam - Questions and Answers

Document Content and Description Below

PSI Life Exam - Questions and Answers Which of the following dividend options will increase the death benefit? Guaranteed insurability Under a executive bonus plan, premiums paid by the employer are... only tax deductible when the bonus is an insurance plan An intermediary should determine whether replacement is involved in a transaction no later than when the Insurance company issues the policy In Wisconsin the intermediary holding which of the following licenses is exempt from continuing education requirements? credit insurance Contributions made to a Roth IRA are Not tax deductible Who can surrender an annuity during the accumulation period? the policyowner An annuity that guarantees a given number of income payments, whether or not the annuitant is alive to receive them, is referred to as a life annuity certain Which term describes naming a contingent beneficiary as "all of my children"? Class designation A contract in which the company would be legally obligated to perform is considered Conditional Which type of insurance policy is characterized by premiums that are fully paid-up within a stated period, after which no further premiums are REQUIRED? Limited payment life insurance What is it called when an insurer writes only insureds who have known risks? Predictable loss Disclosure requirements for the sale of annuities do NOT apply to Immediate annuities Sam had a $100,000 5-year, non-renewable level term life insurance policy with his wife as the beneficiary. Sam dies 8 years after the inception date of the policy. How much will be paid to Sam's wife? Nothing One of the MAIN responsibilities of an underwriter is to protect the insurer against adverse selection The purpose of a variable contract is to provide benefits that may change according to the investment experience of any separate account A common purpose for purchasing a fixed annuity is to provide future economic security, as payments do not fluctuate What is an insurer's liability when it is discovered after an insured dies that the insured's age on the policy was misstated? the insurer must pay a prorated amount of the policy based on the amount of insurance the insured's premiums would have been if purchased at the correct age An immediate annuity is designed to make its first benefit payment to the annuitant typically one month from the annuity's purchase date In a policy collaterally assigned, proceeds will be paid upon the death of an insured to the Beneficiary only Once an insurance company's liability on a claim is established, the company MUST Settle the claim in good faith Annuities purchased with a series of premium payments that vary year to year are called Flexible premium deferred annuities 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 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 An intermediary may receive a commission on business written on the intermediary's own life ONLY if the intermediary [Show More]

Last updated: 2 months ago

Preview 1 out of 10 pages