PSI Basic Life Insurance Practice Test Guide Questions and Answers

The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount. - Answer- Which of the following is TRUE for a flexible premium annuity? Medical underwriting exam - Answer- A consumer report used to determine eligibility for insurance may include all of the following EXCEPT: They are MORE likely to receive a loan based on the expectations of the proceeds. - Answer- Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries? the employer under business expenses - Answer- Group AD&D policies may be deducted by whom and under which deduction category? 1 - Answer- In noncontributory plans, which percentage of eligible members must participate? Coverage continues after the policy is paid-up. - Answer- Which of the following is TRUE of the limited pay whole life policy? when the applicant for the policy is not the insured - Answer- When does insurable interest come into play in a life insurance policy? The applicant and possibly the agent initial any changes made. - Answer- What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application? Automatic premium loan - Answer- Which of the following policy loans is a provision in which an amount equal to the premium due is subtracted from the cash value to pay the premium and prevent a lapse of the policy. establishing a trust to administer proceeds - Answer- Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy? there is no guaranteed minimum death benefit. - Answer- All of the following are characteristics of variable whole life EXCEPT fraudulent misstatements - Answer- Which of the following is exempted from the incontestability provision in insurance policies? the minor in a juvenile policy. - Answer- All of the following are required signatures on a life insurance application