Exam (elaborations)
PSI PRACTICE EXAM NJ QUESTIONS WITH CORRECT ANSWERS
- Course
- Institution
PSI PRACTICE EXAM NJ QUESTIONS WITH CORRECT ANSWERS
[Show more]
Content preview
PSI PRACTICE EXAM NJ QUESTIONSWITH CORRECT ANSWERS
All of the following are ownership rights EXCEPT:
A: changing the beneficiary of the policy
B: borrowing funds against cash value
C: switching the policy from on insured to another
D: assigning all of the rights of the policy to another person - Answer-C: switching the
policy from on insured to another
Which of the following is characteristic of a non qualified plan:
A: defined vesting schedule
B: plan established by the employer
C: plan does not meet federal guidelines for tax benefits
D: employer contributions are deductible business expense - Answer-C: plan does not
meet federal guidelines for tax benefits
How do warranties differ from representations?
A: a warranty is guaranteed to be true, a representation is believed to be true to the best
of one's knowledge
B: 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 issued by the insurer, a representation is a statement provided by the
applicant
D: an incorrect representation automatically voids a contract, whereas an incorrect
warranty must be proven - Answer-A: a warranty is guaranteed to be true, a
representation is believed to be true to the best of one's knowledge
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:
A: designation option
B: recording method
C: endorsement method
D: succession of beneficiaries - Answer-B: recording method
All of the following are required signature on a life insurance application EXCEPT:
A: the agent
B: the applicant
C: the minor in a juvenile policy
D: the proposed insured - Answer-C: the minor in a juvenile policy
All of the following are features of the spendthrift clause EXCEPT:
A: proceeds are paid in some other way than a single premium
B: proceeds are protected by the insurer from the beneficiary's creditors
C: transfer of proceeds to creditors
, D: the beneficiary may encumber the proceeds - Answer-D: the beneficiary may
encumber the proceeds
Which type of annuity attempts to offset inflation by providing a benefit linked to an
underlying investment account:
A: deferred
B: fixed
C: immediate
D: variable - Answer-D: variable
How does the per capita rule apply to proceeds from a life insurance policy:
A: the proceeds are divided equally among living primary beneficiaries
B: the secondary beneficiary receives the proceeds if the primary beneficiary is no
longer living
C: the proceeds go to the policyholder's estate when no beneficiary is living
D: the proceeds go to the descendants of the primary beneficiaries - Answer-A: the
proceeds are divided equally among living primary beneficiaries
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: the applicant's right to maintain privacy
C: an opportunity to refuse the dissemination of the information
D: the treatment procedures that are covered by the policy - Answer-D: the treatment
procedures that are covered by the policy
Which of the following is the time limit on certain defenses after which the policy
becomes incontestable:
A: 12 months
B: 18 months
C: 2 years
D: 5 years - Answer-C: 2 years
Why is relying solely on employer group life insurance generally considered inadequate
for most individual needs:
A: it is financially insufficient to cover end of life expense - Answer-A: it is financially
insufficient to cover end of life expense
Current assumption whole life policies are sensitive to which of the following:
A: interest rates
B: age of the insured
C: health of the insured
D: current cash value of the policy - Answer-A: interest rates
The group conversion option is allowed for all of the following EXCEPT:
A: termination of the master policy
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now