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PSI EXAM REVIEW QUESTIONS WITH COMPLETE ANWERS
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PSI EXAM REVIEW QUESTIONS WITH COMPLETE ANWERS
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PSI EXAM REVIEW QUESTIONS WITHCOMPLETE ANWERS
Which of the following would be true of both the fixed period and fixed amount
settlement options - Answer-Both guarantee that the principal and interest will be fully
paid out
Who does the spendthrift clause in a life insurance policy protect? - Answer-beneficiary
Under what circumstances will the contingent beneficiary receive the death benefit? -
Answer-If the primary beneficiary dies before the insured
The risk selection and classification process is known as - Answer-Underwriting
Which of the following bears the investment risk in a variable life insurance policy? -
Answer-The policyowner
Which of the following is not true regarding insurance consultant? - Answer-They offer
insurance advice to the public for a fee
Which federal act define rules pertaining to protected health information - Answer-
HIPAA
An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA.
What penalty will be imposed? - Answer-10%
Which of the following is a permissible reason for an insurance company to contest
payment of a claim based on statements in the application - Answer-the application
contains material misstatements
Insurance contract are unilateral in nature what does that mean - Answer-Only one
party make enforceable promise
Which of the following is true regarding a joint life annuity - Answer-The payments stop
at the first death
If any authorized entity fails to file an annual financial solvency statement or does not
reply to a written inquiry within 30 days they are subject to a penalty of up to - Answer-
Which of the following documents used in the underwriting process contains specific
medical details about an applicant - Answer-Attending Physician's Statement (APS)
Because of imposed blackout period the surviving spouse will not receive social security
benefits until - Answer-He or she qualifies for retirement benefits
, An Equity Indexed Annuity will grow based upon - Answer-Performance of a recognized
index
Which type of authority is found in the agents contract - Answer-to express
An IRA contribution can be made from which of the following? - Answer-cash
The frequency and amount of the premium payment are known as what - Answer-
Premium Mode
An individual purchases a life insurance policy and lists his parents as the beneficiaries
he is able to change beneficiaries at any time what type of beneficiary designations
does the policy have? - Answer-Revocable
An annuity has accumulated the cash value of $70,000, of which $30,000 is from
premium payments. The annuitant dies during the accumulation phase. The beneficiary
will receive - Answer-$70,000
All of the following are true of the survivorship life policy except - Answer-The premium
is based on the age of each insured
Which dividend option increases the death benefit? - Answer-Paid-up additions
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic
option? - Answer-Extended term
All of the following are true of a nonqualified deferred compensation plan except -
Answer-Contributions are tax deductible
Which of the following statements describes one of the reasons individuals purchase life
insurance? - Answer-it creates an immediate estate
In a variable life insurance policy all of the following assets are held in the insurance
company's general account except - Answer-
Which of the following losses would likely be covered under the accidental death rider? -
Answer-Death caused by a head-on collision
All of the following are true regarding the waiver of cost of insurance rider except -
Answer-The rider expires when the insured reaches age 60
Who can request changes in premium payments, face value, loans, and policy plans? -
Answer-Policyowner
Which department or division of an insurance company is responsible for the selection
evaluation and distribution of risks - Answer-Underwriting
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