PSI online exam Life Insurance

Card Set Information

Author:
happyedi253
ID:
310259
Filename:
PSI online exam Life Insurance
Updated:
2015-10-25 17:36:31
Tags:
LIfe INsurance
Folders:

Description:
PSI online exam Life Insurance
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user happyedi253 on FreezingBlue Flashcards. What would you like to do?


  1. If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT
    A) insurer’s practices with respect to the treatment of this information
    B) an opportunity to refuse the dissemination of the information
    C) the treatment procedures that are covered by the policy.
    D) the applicant’s rights to maintain privacy
    C) the treatment procedures that are covered by the policy.
    (this multiple choice question has been scrambled)
  2. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while
    A) serving in the military
    B) living overseas
    C) committing a misdemeanor
    D) piloting a personal aircraft
    C) committing a misdemeanor
    (this multiple choice question has been scrambled)
  3. What type of insurance should a company purchase if it wants to insure the life of its CEO?
    A) industrial life insurance
    B) group life policy
    C) key person insurance
    D) BOE insurance
    C) key person insurance
    (this multiple choice question has been scrambled)
  4. For an individual long-term care policy there is an annual dollar limit for tax-deductions that is base on which of the following?
    A) age
    B) cost of care
    C) policy value
    D) premium cost
    A) age
    (this multiple choice question has been scrambled)
  5. Which of the following is exempted from the incontestability provision in insurance policies?
    A) change in health
    B) fraudulent misstatements
    C) pre-existing conditions
    D) changes in the insurance code
    B) fraudulent misstatements
    (this multiple choice question has been scrambled)
  6. Which of the following term insurance types provides temporary protection that can be changed to some type of permanent protection without evidence of insurability?
    A) decreasing
    B) re-entry
    C) convertible
    D) level
    C) convertible
    (this multiple choice question has been scrambled)
  7. 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?
    A) Life annuity certain option
    B) Joint life option
    C) Joint and survivorship option
    D) Refund life annuity option
    C) Joint and survivorship option
    (this multiple choice question has been scrambled)
  8. Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?
    A) loan interest rates
    B) premium due dates
    C) the effective date
    D) any exclusions
    D) any exclusions
    (this multiple choice question has been scrambled)
  9. All of the following are ownership rights EXCEPT
    A) borrowing funds against cash value
    B) changing the beneficiary of the policy
    C) assigning all of the rights of the policy to another person
    D) switching the policy from one insured to anther
    D) switching the policy from one insured to another
    (this multiple choice question has been scrambled)
  10. How might someone cover the extra expenses of child care and home-related costs?
    A) adding coverage of a grandparent
    B) purchasing family term insurance
    C) adding cost of living coverage
    D) purchasing a substitute insured rider
    B) purchasing family term insurance
    (this multiple choice question has been scrambled)
  11. All of the following are required signatures on a life insurance application EXCEPT
    A) the proposed insured
    B) the applicant
    C) the agent
    D) the minor in a juvenile policy
    D) the minor in a juvenile policy.
    (this multiple choice question has been scrambled)
  12. Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?
    A) They are LESS likely to receive a loan based on the expectations of the proceeds.
    B) They are MORE likely to receive a loan based on the expectations of the proceeds.
    C) They can be changed without the beneficiary’s consent after a life changing event.
    D) They are responsible for premium payment when policyholder fails to pay.
    B) They are MORE likely to receive a loan based on the expectations of the proceeds.
    (this multiple choice question has been scrambled)
  13. why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?
    A) It is financially insufficient to cover end of life expenses.
    B) It does not pay off the insured’s mortgage.
    C) It is meant to cover funeral expenses only.
    D) It is based on salary amounts that are too low.
    A) It is financially insufficient to cover end of life expenses.
    (this multiple choice question has been scrambled)
  14. How do warranties differ from representations?
    A) an incorrect representation automatically voids a contract, whereas an incorrect warranty must be proven.
    B) a warranty is issued by the insurer, a representation is a statement provided by the applicant.
    C) a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.
    D) 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 guaranteed to be true, a representation is believed to be true to the best of one's knowledge.
    (this multiple choice question has been scrambled)
  15. The group conversion option is allowed for all of the following EXCEPT
    A) during the annual benefits enrollment period.
    B) loss of group coverage due to termination of employment.
    C) upon the loss of eligibility on the part of a class insureds.
    D) termination of the master policy.
    A) during the annual benefits enrollment period.
    (this multiple choice question has been scrambled)
  16. Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?
    A) variable
    B) fixed
    C) immediate
    D) deferred
    A) variable
    (this multiple choice question has been scrambled)
  17. 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?
    A) An arbitration agreement is signed at the time of the signing of the application.
    B) All changes must be approved by the underwriter prior to the submission of the application.
    C) The applicant and possibly the agent initial any changes made.
    D) The applicant and the agent sign a document that outlines changes made.
    C) The applicant and possibly the agent initial any changes made.
    (this multiple choice question has been scrambled)
  18. All of the following are features of the spendthrift clause EXCEPT
    A) transfer of proceeds to creditors is prohibited.
    B) the beneficiary may encumber the proceeds.
    C) proceeds are protected by the insurer from the beneficiary’s creditors.
    D) the proceeds are paid in some other way than a single lump sum.
    B) the beneficiary may encumber the proceeds.
    (this multiple choice question has been scrambled)
  19. 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 recording the change in its records?
    A) recording method
    B) succession of beneficiaries
    C) designation option
    D) endorsement method
    A) recording method
    (this multiple choice question has been scrambled)
  20. 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?
    A) insuring clause
    B) conditions
    C) definitions
    D) policy title pages
    A) insuring clause
    (this multiple choice question has been scrambled)
  21. Which of the following is TRUE of an equity-indexed annuity?
    A) It is a variable annuity.
    B) It may decrease in value.
    C) it requires a securities license to sell.
    D) It has a guaranteed minimum interest rate.
    D ) It has a guaranteed minimum interest rate.
  22. An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary?
    A) common disaster clause
    B) endorsement method
    C) contingent beneficiary
    D) irrevocable beneficiary
    A) common disaster clause
    (this multiple choice question has been scrambled)
  23. 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?
    A) benefits are adjusted to an amount that the premium would have purchased at the correct age or gender
    B) if the death is two years after originally policy purchase, complete benefits are paid.
    C) the application is considered fraudulent and no benefits are paid.
    D) the proceeds of the policy must be determined by a probate court proceeding.
    A) benefits are adjusted to an amount that the premium would have purchased at the correct age or gender
    (this multiple choice question has been scrambled)
  24. All life insurance and health insurance contracts contain all of the following EXCEPT
    A) conditions
    B) Insuring clause
    C) Policy face
    D) representation
    D) representation
    (this multiple choice question has been scrambled)
  25. All of the following are classifications of risk EXCEPT
    A) preferred
    B) non-nicotine.
    C) substandard
    D) declined
    B) non-nicotine.
    (this multiple choice question has been scrambled)
  26. Group AD&D policies may be deducted by whom and under which deduction category?
    A) the employer under worker’s compensation
    B) the employee under medical expenses
    C) the employer under business expenses
    D) the employee under business expenses
    C) the employer under business expenses
    (this multiple choice question has been scrambled)
  27. All of the following are tax qualified retirement plans EXCEPT
    A) 401(K)
    B) 403(B)
    C) Section 529 plan
    D) SIPMPLE IRA
    C) Section 529 plan
    (this multiple choice question has been scrambled)
  28. Which of the following is common in an increasing term life policy?
    A) The premium increases over time.
    B) It is used as mortgage credit insurance.
    C) Insurance protection decreases over time.
    D) It begins with little or no insurance protection.
    D) It begins with little or no insurance protection.
    (this multiple choice question has been scrambled)
  29. Which of the following is the time limit on certain defenses after which the policy becomes incontestable?
    A) 18 months
    B) 2 years
    C) 12 months
    D) 5 years
    B) 2 years
    (this multiple choice question has been scrambled)
  30. Which whole life policy premium type is the most common?
    A) continuous premium
    B) non-participating
    C) limited payment
    D) single premium
    A) continuous premium
    (this multiple choice question has been scrambled)
  31. The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?
    A) The policyowner has named a revocable beneficiary.
    B) The policyowner deems the beneficiary unfit.
    C) The insurer prohibits changes to beneficiaries.
    D) The policyowner has named an irrevocable beneficiary.
    D) The policyowner has named an irrevocable beneficiary.
    (this multiple choice question has been scrambled)
  32. Which of the following is characteristic of a nonqualified plan?
    A) plan does not meet federal guidelines for tax benefits
    B) employer contributions are deductible business expenses
    C) plan established by the employer
    D) defined vesting schedule
    A) plan does not meet federal guidelines for tax benefits
    (this multiple choice question has been scrambled)
  33. In a level term life policy, which ALWAYS remains constant?
    A) beneficiary
    B) maximum age of the insured
    C) premium
    D) death benefit
    D) death benefit
    (this multiple choice question has been scrambled)
  34. Why is the accidental death benefit referred to as double indemnity?
    A) The beneficiaries have twice the amount of time to provide proof of loss.
    B) It provides twice the face value in the policy for death due to accident.
    C) It provides for both the actual death as well as other losses from the accident.
    D) The beneficiaries must provide proof of death due to multiple causes.
    B) It provides twice the face value in the policy for death due to accident.
    (this multiple choice question has been scrambled)
  35. Which of the following is TRUE for a flexible premium annuity?
    A) The company promises to pay the annuitant an amount each period beginning after a single lump sum payment.
    B) The actual amount of the annuity benefit is determined in advanced.
    C) A single set amount premium is paid by the annuitant on an annual basis.
    D) The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.
    D) The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.
    (this multiple choice question has been scrambled)
  36. Which of the following occurs immediately after the application is submitted and the initial premium paid?
    A) the underwriting process begins
    B) the applicant’s references are checked
    C) the insurance goes into effect
    D) the beneficiaries are selected
    A) the underwriting process begins
    (this multiple choice question has been scrambled)
  37. In order to AVOID being classified as an MEC, a policy must pass which of the following?
    A) policy loan test
    B) seven-pay test
    C) accelerated benefits test
    D) five-pay test
    B) seven-pay test
    (this multiple choice question has been scrambled)
  38. Which of the following lists the three common types of permanent individual life insurance?
    A) Universal Life, AD&D, Term Life
    B) Group Life, Whole Life, Variable Life
    C) Whole life, Incidental Life, Term Life
    D) Variable Life, Whole Life, Universal Life
    D) Variable Life, Whole Life, Universal Life
    (this multiple choice question has been scrambled)
  39. Which of the following refers to how often a premium is paid?
    A) net
    B) level
    C) ratio
    D) mode
    D) mode
    (this multiple choice question has been scrambled)
  40. When the courts look at a contract to determine the intent of the parties which of the following is considered?
    A) the entire contract
    B) any material added to the basic contract
    C) the relevant portions of the contract
    D) any words that have ambiguous definitions
    A) the entire contract
    (this multiple choice question has been scrambled)
  41. Current assumption whole life policies are sensitive to which of the following?
    A) age of the insured
    B) health of the insured
    C) interest rates
    D) current cash value of the policy
    C) interest rates
    (this multiple choice question has been scrambled)
  42. What is the purpose of Stranger-originated life insurance (STOLI)?
    A) it is a method of insuring a person who has been previously declined.
    B) the policy is written so as to avoid proof of insurable interest.
    C) the policy is originated primarily or solely for the purpose of resale
    D) it is a fraudulent policy meant for financial gain of someone of unknown to the insured.
    C) the policy is originated primarily or solely for the purpose of resale
    (this multiple choice question has been scrambled)
  43. Which of the following is TRUE of the limited pay whole life policy?
    A) Coverage ends when the policy is paid up.
    B) Premium payments are lower than continuous premium whole life.
    C) Premium payments increases as the insured ages.
    D) Coverage continues after the policy is paid-up.
    D) Coverage continues after the policy is paid-up.
    (this multiple choice question has been scrambled)
  44. 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?
    A) Grace period
    B) Free look
    C) Insuring clause
    D) Exclusions
    B) Free look
    (this multiple choice question has been scrambled)
  45. Obtaining consumer information reports under false pretenses is prosecutable by which of the following?
    A) Securities and Exchange Commission
    B) Fair Credit Reporting Act
    C) USA Patriot Act
    D) State laws where the applicant resides
    B) Fair Credit Reporting Act
    (this multiple choice question has been scrambled)
  46. All of the following are TRUE regarding incomplete applications EXCEPT
    A) the underwriting department will return the application to the agent.
    B) there will be a delay in the underwriting process.
    C) the applicant will have to wait additional time before coverage begins.
    D) the incomplete application can be accepted with the missing information added later.
    D) the incomplete application can be accepted with the missing information added later.
    (this multiple choice question has been scrambled)
  47. What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one?
    A) outstanding loans are cancelled
    B) insured original issue age is used
    C) No application is required
    D) No proof of insurability is required
    B) insured original issue age is used
    (this multiple choice question has been scrambled)
  48. Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit?
    A) term life
    B) variable universal life
    C) regular whole life
    D) variable life
    B) variable universal life
    (this multiple choice question has been scrambled)
  49. Which of the following is an example of a premium payment mode?
    A) annual premium payment
    B) payment by check
    C) $200 per policy year
    D) automatic deductions of premium
    A) annual premium payment
    (this multiple choice question has been scrambled)
  50. How does the per capita rule apply to proceeds from a life insurance policy?
    A) The proceeds go to the policyholder’s estate when no beneficiary is living.
    B) The proceeds are divided equally among living primary beneficiaries.
    C) The secondary beneficiary receives the proceeds if the primary beneficiary is no longer living.
    D) The proceeds go to the descendants of the primary beneficiaries.
    B) The proceeds are divided equally among living primary beneficiaries.
    (this multiple choice question has been scrambled)

What would you like to do?

Home > Flashcards > Print Preview