PSI LIFE INSURANCE EXAM
LATEST REAL EXAM QUESTIONS
& CORRECT ANSWERS
all of the following are ownership rights EXCEPT:
A: changing the beneficiary of the policy
B: borrowing funds against cash value
C: switching the policy from on insured to another
D: assigning all of the rights of the policy to another person
Correct Answer:
C: switching the policy from on insured to another
which of the following is characteristic of a non qualified plan:
A: defined vesting schedule
B: plan established by the employer
C: plan does not meet federal guidelines for tax benefits
D: employer contributions are deductible business expense
Correct Answer:
C: plan does not meet federal guidelines for tax benefits
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How do warranties differ from representations?A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge
B: a representation is guaranteed to be true, a warranty is believed to be true
to the best of one's knowledge C: a warranty is issued by the insurer, a representation is a statement provided by the applicant
D: an incorrect representation automatically voids a contract, whereas an
incorrect warranty must be proven
Correct Answer:
A: a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge
all of the following are features of the spendthrift clause EXCEPT:
A: proceeds are paid in some other way than a single premium
B: proceeds are protected by the insurer from the beneficiary's creditors
C: transfer of proceeds to creditors
D: the beneficiary may encumber the proceeds
Correct Answer:
D: the beneficiary may encumber the proceeds
current assumption whole life policies are sensitive to which of the following:
A: interest rates
B: age of the insured
C: health of the insured
D: current cash value of the policy
Correct Answer:
A: interest rates 2 / 3
all of the following are required signature on a life insurance application
EXCEPT:
A: the agent
B: the applicant
C: the minor in a juvenile policy
D: the proposed insured
Correct Answer:
C: the minor in a juvenile policy
in which of the following must a beneficiary change request be filed in writing
to the insurer and is made effective by the insurance company:
A: designation option
B: recording method
C: endorsement method
D: succession of beneficiaries
Correct Answer:
B: recording method
Which type of annuity attempts to offset inflation by providing a benefit linked
to an underlying investment account:
A: deferred
B: fixed
C: immediate
D: variable
Correct Answer:
D: variable
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