1. What kind of retirement plan can a 75-employee for profit corporation
establish?: Simple IRA
2. The taxable portion of a monthly income benefit paid during the annuity
phase from a nonqualified annuity is calculated using the: Exclusion ratio
3. Unfair claims settlement methods and practices by an insurance company
include all of the following acts EXCEPT: failure to pay all claims that are
reported within 90 days after a loss occurs
4. 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:
Interest only
5. Regulations on life insurance advertising apply to which of the following
insurance company materials?: A radio commercial that promotes the benefits
of a specific company's life insurance products
6. An insurance company may contest a life policy within a MAXIMUM of how
many years after the policy's effective date?: 2
7. All of the following factors are used in life insurance premium
determination
EXCEPT: Morbidity
8. The authorization used to obtain the applicant's medical information that
will be used by the insurer for the primary purpose of determining eligibility
must include:: the time frame in which the insurer must release the eligibility
decision to the agent
9. 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:: Misrepresentation
10. Dividends are NOT subject to taxation because: Paying dividends is
equivalent to returning a premium
11. The XYZ Insurance Company cancels an intermediary's contract. XYZ
could be bound by the intermediary's later acts if it:: Continues to pay the
intermediary deferred commissions
12. Which of the following products is designed to pay benefits that can
provide a stream of retirement income to the purchaser?: tax-deferred
growth 13. Which of the following guarantees that the annuitant CANNOT
outlive their benefits?: Guaranteed lifetime withdrawal benefit
14. 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?: It does not affect the insurance company's obligations
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, .
PSI Life Exam
15. In Wisconsin, an "intermediary" is defined as a representative of:: A
Solicitor
16 All of the following statements regarding a group annuity are correct
EXCEPT: Each employee signs and receives an individual contract
17. Statements by an application concerning personal health history, family
health history, occupation, and hobbies are referred to as: Representations
18. Which of the following entities is responsible for notifying an insurance
company of a disability insurance claim?: 1. Insured
2. Insured's physician
19. An insurer may cancel a policy midterm for all of the following reasons
EXCEPT when the insured:: Has a change in marital status
20. An accelerated death benefit: Pays a portion of the face amount when a
policyowner is determined to be terminally ill
21. Upon annuitization, which of the following will have the HIGHEST monthly
payout?: Straight Life
22. Backdating on a life insurance policy is the practice of: Making the policy
effective on an earlier date then the present
23. Wisconsin insurance law requires intermediaries to keep policyholder
records for at least how many years after termination or lapse of the
policy?: 3
24. When underwriting group life insurance, the underwriter: Typically
evaluates the group as a whole
25. When using the needs approach to determine the amount of life insurance
needed, it is necessary to determine all of the following EXCEPT: project
lifetime earnings in the stock market, including dividends and growth account
26. Which of the following is permitted under the proper exchange of
business?: Splitting a commission between two intermediaries licensed in the
same line of insurance
27. the life insurance illustration rule applies to:: Universal Life
28. Which of the following is NOT subject to the Wisconsin annuity suitability
law?: Fixed settlement options
29. Without written consent, a policyowner CANNOT change the beneficiary if
he has named: An irrevocable beneficiary
30. What element of a contract does the application represent?: Offer
31. An life insurance policy is required to contain which of the following
provisions?: A reinstatement provision during which the interest may be charge
for late payments
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