- | Page
PSI LIFE EXAM QUESTIONS AND
ANSWERS
Question : What Kind Of Retirement Plan Can A 75-
Employee For Profit Corporation Establish?
Correct Answer: Simple Ira
Question : 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
Question : 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
Question : 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
- | Page
Correct Answer: Interest Only
Question : 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
Question : An Insurance Company May Contest A Life
Policy Within A Maximum Of How Many Years After The Policy'S Effective Date?
Correct Answer: 2
Question : All Of The Following Factors Are Used In
Life Insurance Premium Determination Except
Correct Answer: Morbidity
Question : The Authorization Used To Obtain The
Applicant'S Medical Information That Will Be Used By
- | Page
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
Question : 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
Question : Dividends Are Not Subject To Taxation
Because
Correct Answer: Paying Dividends Is Equivalent To
Returning A Premium
Question : 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
- | Page
Question : 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
Question : Which Of The Following Guarantees That The
Annuitant Cannot Outlive Their Benefits?
Correct Answer: Guaranteed Lifetime Withdrawal
Benefit
Question : 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