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PSI Life Insurance Test with answers, Exams of Public Health

PSI Life Insurance Test with answers

Typology: Exams

2024/2025

Available from 03/25/2025

victor-kiragu
victor-kiragu 🇺🇸

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PSI Life Insurance Test with answers
All life insurance and health insurance contracts contain all of the
following EXCEPT representation
All of the following are classifications of risk EXCEPT non-nicotine
All of the following are common exclusions from loss found in disability
income policies EXCEPT for that incurred while committing a
misdemeanor
All of the following are features of the spendthrift clause EXCEPT the
beneficiary may encumber the proceeds
All of the following are ownership rights EXCEPT switching the policy
from one insured to another
All of the following are ownership rights EXCEPT switching the policy
from one insured to another
All of the following are required signatures on a life insurance application
EXCEPT the minor in a juvenile policy
All of the following are tax qualified retirement plans EXCEPT Section 529
plan
All of the following are tax qualified retirement plans EXCEPT Section 529
plan
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PSI Life Insurance Test with answers

All life insurance and health insurance contracts contain all of the following EXCEPT ✓representation All of the following are classifications of risk EXCEPT ✓non-nicotine All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while ✓committing a misdemeanor All of the following are features of the spendthrift clause EXCEPT ✓the beneficiary may encumber the proceeds All of the following are ownership rights EXCEPT ✓switching the policy from one insured to another All of the following are ownership rights EXCEPT ✓switching the policy from one insured to another All of the following are required signatures on a life insurance application EXCEPT ✓the minor in a juvenile policy All of the following are tax qualified retirement plans EXCEPT ✓Section 529 plan All of the following are tax qualified retirement plans EXCEPT ✓Section 529 plan

All of the following are TRUE regarding incomplete applications EXCEPT ✓the incomplete application can be accepted with the missing information added later. An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary? ✓common disaster clause Current assumption whole life policies are sensitive to which of the following? ✓interest rates For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following? ✓age For an individual long-term care policy there is an annual dollar limit for tax-deductions that is base on which of the following? ✓age Group AD&D policies may be deducted by whom and under which deduction category? ✓the employer under business expenses How do warranties differ from representations? ✓a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge. How does the per capita rule apply to proceeds from a life insurance policy? ✓The proceeds are divided equally among living primary beneficiaries. How might someone cover the extra expenses of child care and home- related costs? ✓purchasing family term insurance

Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? ✓benefits are adjusted to an amount that the premium would have purchased at the correct age or gender What is the order in which beneficiaries receive proceeds from a life insurance policy? ✓succession of beneficiaries What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one? ✓insured original age is used What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one? ✓insured original issue age is used What is the purpose of Stranger-originated life insurance (STOLI)? ✓the policy is originated primarily or solely for the purpose of resale 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? ✓The applicant and possibly the agent initial any changes made. What type of insurance should a company purchase if it wants to insure the life of its CEO? ✓key person insurance When the courts look at a contract to determine the intent of the parties which of the following is considered? ✓the entire contract Which annuity settlement option provides a stated monthly amount to the annuitant and upon the annuitant?s death the same or a lesser amount paid for the lifetime of the survivor? ✓Joint and survivorship option

Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy? ✓establishing a trust to administer proceeds Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy? ✓establishing a trust to administer proceeds Which of the following is an example of a premium payment mode? ✓annual premium payment Which of the following is characteristic of a nonqualified plan? ✓plan does not meet federal guidelines for tax benefits Which of the following is common in an increasing term life policy? ✓It begins with little or no insurance protection Which of the following is exempted from the incontestability provision in insurance policies? ✓fraudulent misstatements Which of the following is the time limit on certain defenses after which the policy becomes incontestable? ✓2 years Which of the following is TRUE for a flexible premium annuity? ✓The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount. Which of the following is TRUE of an equity-indexed annuity? ✓It has a guaranteed minimum interest rate. Which of the following is TRUE of the limited pay whole life policy? ✓Coverage continues after the policy is paid-up

Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms? ✓insuring clause Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs? ✓Free look Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit? ✓variable universal life Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account? ✓variable Which whole life policy premium type is the most common? ✓continuous premium why is relying solely on employer group life insurance generally considered inadequate for most individual's needs? ✓It is financially insufficient to cover end of life expenses. Why is the accidental death benefit referred to as double indemnity? ✓It provides twice the face value in the policy for death due to accident.