Psi exam

What is the most common name for a single policy that is designed to insure two or more lives with a standard premium and that pays the death benefit upon the first death

Joint Life

Variable insurance and variable annuities are regulated by

SEC, FINRA, and Departments of Insurance

Which of the following is true regarding a joint life annuity

The payments stop at the first death

Which of the following is not true regarding insurance consultant?

They offer insurance advice to the public for a fee

An illustration used in the sale of a life insurance policy must include a label stating

"Life insurance illustration"

Which portion of a nonqualified annuity payment is taxable

Interest earned on principal

The reduction of premium option uses the dividend to reduce

Next year's premium

Which dividend option increases the death benefit?

Paid-up additions

Which of the following types of insurance products would appropriate for an individual with a low income and high insurance needs

Term insurance

Life insurance creates an immediate estate which of the following best explains this statement

The face value of the policy is payable to the beneficiary upon the death of the insured

What type of an interest rate is guaranteed in universal life policies?

contract interest rate

Life insurance can provide which of the following

survivor protection

Which of the following are characteristics of term life insurance

temporary protection, renewability, no cash value

Which of the following is guaranteed under a variable whole life insurance policy

minimum death benefit

Which of the following is not a component of an insurance policy premium

number of beneficiaries

Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs

Applicants who may require a larger death benefit in the future should buy convertible term insurance

The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except

purchase of a new home

An IRA contribution can be made from which of the following?

cash

Which type of authority is found in the agents contract

to express

How long is the grace period for an individual life insurance policy

1 month

A life insurance policy can be backdated to affect a lower premium for up to a maximum of how many mouths

6 mouths

An insured and his spouse recently had a child which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount

Children's term rider

All of the following are true of a nonqualified deferred compensation plan except

Contributions are tax deductible

Which of the following best describes life annuity with period certain option

It guarantees benefit payments for life of the annuitant and for a specified period for the beneficiary.

In order to reinstate a life insurance policy the insured must do all of the following except

Pay next year's premium in advance

An Equity Indexed Annuity will grow based upon

Performance of a recognized index

The frequency and amount of the premium payment are known as what

Premium Mode

Annuities certain limit the amount paid by the annuity to a certain fixed

period or fixed amount

An aleatory contract is based on what kind of exchange?

unequal exchange of values

The risk selection and classification process is known as

Underwriting

All of the following are true of the survivorship life policy except

The premium is based on the age of each insured

All of the following are true of annually renewable term insurance except

proof of insurability must be provided at each renewal

Robert wants to insure his 4 year old son, Tyson Robert currently has a policy on his own life for 400000 he is getting ready to lower that amount to 100000 next year what is the maximum amount that he can purchase on tyson?

25000

Which of the following losses would likely be covered under the accidental death rider?

Death caused by a head-on collision

If a life insurance company uses HIV testing as a part of its underwriting when must an applicant be notified of the procedure

Prior to performance of the test

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?

Revocable

Which department or division of an insurance company is responsible for the selection evaluation and distribution of risks

Underwriting

An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

Which of the following would be true of both the fixed period and fixed amount settlement options

Both guarantee that the principal and interest will be fully paid out

All of the following are true regarding the waiver of cost of insurance rider except

The rider expires when the insured reaches age 60

Who can request changes in premium payments, face value, loans, and policy plans?

Policyowner

Which of the following is considered a field underwriter

an agent

Who does the spendthrift clause in a life insurance policy protect?

beneficiary

Which of the following statements is true regarding simple plans

The employer can contribute up to 5% of the employees annual compensation

Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application

the application contains material misstatements

Which of the following types of insurance policies would perform the function of cash accumulation

whole life

A whole life policy is surrendered for a reduced paid up policy the cash value in the new policy will

continue to increase

Which of the following documents used in the underwriting process contains specific medical details about an applicant

Attending Physician's Statement (APS)

Which of the following would not trigger the payment of accelerated death benefits

Being permanently disabled

The human life value approach to determining life insurance needs is based upon which of the following ideas

Loss of breadwinner's income

An example of an alien insurer doing business in this state is one formed under the laws of

Mexico

What is the cost of coverage based on for group life insurance

The average age and the ratio of men to women

Insurance contract are unilateral in nature what does that mean

Only one party make enforceable promise

What type of insurer uses a formal sharing agreement

Reciprocal Insurers

Which are premiums from fixed annuities invested?

General account

When an individual obtains an insurance license for the primary purpose of writing insurance on him or herself or for members of his or her immediate family or business this is called

controlled business

Because of imposed blackout period the surviving spouse will not receive social security benefits until

He or she qualifies for retirement benefits

What does the application of contract of adhesion mean

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

Under what circumstances will the contingent beneficiary receive the death benefit?

If the primary beneficiary dies before the insured

All of the following are true of group life insurance except

(a) The insureds each own their own contract

An insured recently had a new home built and insisted on having smoke detectors installed in multiple place in the house what method of handing risk is the insured using

Retention

Which of the following statements describes one of the reasons individuals purchase life insurance?

it creates an immediate estate

When comparing a joint life policy to two individual life policies of the same amount on the same insureds which condition is true

joint life has a lower premium than the total of the two individual policies

According to the life insurance replacement regulations which of the following would be an example of policy replacement

A policy is reissued with a reduction in cash value

What is the purpose of the agents report in the application process

To provide additional information about the applicant to the underwriters

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

$70,000

A life producer applying for a life settlement broker license may be exempt from the prelicensing education and examination requirement if the producer has held an active life license for at least how many years?

1 year

Whenever the superintendent has reason to believe that a person has violated or is about to violate any unfair method of competition or an unfair claim practice he or she may serve a statement of the charges and notice of hearing what is the timeframe for hearing after the notice is served

10 days

Which of the following indicates the person upon whose life the annuity income amount is determined

Annuitant

Premiums collected on behalf of the insurance company by an agent will be held in what capacity

Fiduciary

The superintendent of financial services in the state of New York is appointed by the

Governor

Which federal act define rules pertaining to protected health information

HIPAA

Which of the following is not true regarding a deferred annuity

Income payments begin within 1 year from the date of purchase

In order to get a nonresident license is this state an agent must?

Pass the nonresident state exam and satisfy their continuing education requirements

An insured decides to surrender his Whole Life insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest what part of the surrender value would be income taxable

The difference between the premiums paid and the cash value

Which of the following statements is true regarding an agents report during the policy application process

it provides the agents personal observations concerning the proposed insured

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

Which of the following would be required to become licensed as an insurance producer

a customer service representative who solicits no more than one policy a year

Agents may be found guilty of defamation if they make a false statement that is intended to? A) malign another insurance company. B) mislead a prospect about a policy's term of coverage. C) misrepresent the benefits payable under a policy. D) defraud an insured or a claimant.

A) malign another insurance company. Defamation is an unfair trade practice involving false, maliciously critical, or derogatory statements intended to injure a person or company engaged in the insurance business.

Which of following is required in order for a plan to be qualified

The plan must be formally written and communicated to the employees

Which of the following bears the investment risk in a variable life insurance policy?

The policyowner

The needs approach to calculating the amount of life insurance needed is based on

The predicted needs of a family after the premature death of the insured

Which of the following terms refers to the nontaxable portion of each annuity benefit payments?

Principal

The renewable provision allows the policyowners to renew the coverages at the expiration date

Without evidence of insurability

In credit life insurance who is responsible for paying the policy premiums

Borrower only

In whole life insurance when is the policy cash value scheduled to equal the face amount

At the insured's age 100