Agent Examination Life Agent with

CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) with Complete Solutions

Question : Based on the Human Life Value Approach, which

of the following is NOT used to calculate an individual's life value?

• Insured's annual expenses
• Effect of inflation on income over time
• Predicted needs of the family after the insured's death
• Insured's current and future income

Correct answer: C. Predicted needs of the family after the

insured's death.

Question : Can the Superintendent investigate fraudulent

claims if they occurred outside of the resident's state according to the Insurance Fraud Prevention Act?

• Yes. The Superintendent has the power to make an

investigation within this state or outside of the state

• Yes, but only if it is a violation of another state's insurance

law

• No. Because insurance is regulated by the state, all claims

must occur within state boundaries

• No. If fraudulent acts are believed to have been committed,

the Superintendent must notify the state's Superintendent or Commissioner. It will then become a federal matter

Correct answer: A. Yes. The Superintendent has the power to

make an investigation within this state or outside of the state

Question : Which settlement option allows the insurer to

retain the face amount but pay some income based on gain on the proceeds to the beneficiary at regular intervals?

• Interest only
• Life income
• Fixed amount
• Fixed period

Correct answer: A. Interest only

Question : In order to be a licensed life settlement broker, a

person must complete which of the following requirements?

• Post a surety bond

• Submit to a drug test
• Submit fingerprints
• Have been a licensed life producer for at least 6 months

Correct answer: C. Submit fingerprints

Question : How long does a licensee have to notify the

Superintendent of a change of address?

• 90 days
• Immediately
• 30 days
• 60 days

Correct answer: C. 30 days

Question : Which of the following would be deducted from

the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

• Amount paid with the accelerated benefit, plus the

earnings lost by the insurance company in interest income from the accelerated benefit

• There are no deductions taken from death benefits

• Penalty imposed for early withdrawal of the death benefit,

plus the amount of earnings lost by the insurance company in interest income

• 10% federal death benefit income tax, plus the amount of

the accelerated benefit

Correct answer: A. Amount paid with the accelerated benefit,

plus the earnings lost by the insurance company in interest income from the accelerated benefit

Question : Which of the following statements concerning a

Simplified Employee Pension plan (SEP) in INCORRECT?

• SEPs allow the employer to make annual tax deductible

contributions up to 25% of an employee's earned income

• SEPs have a higher tax deductible contribution limit than

an IRA

• Employer contributions are not included int he employee's

gross income

• SEPs are suitable for large companies

Correct answer: D. SEPs are suitable for large companies