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PSI (Business Insurance) CA LIFE EXAM QUESTIONS AND ANSWERS RATED A.
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PSI (Business Insurance) CA LIFE EXAM QUESTIONS AND ANSWERS RATED A.
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PSI (Business Insurance) CA LIFE EXAMQUESTIONS AND ANSWERS RATED A.
Bob and Tom are partners in business. If one of them were to die, which
of the following would guarantee in market, for each of their share of the
business?
Correct Answer -buy-sell agreement
Key person insurance is intended to
Correct Answer -cover business losses due to the death of a key employee
The human life value concept of based on
Correct Answer -Income
Which of the following pieces of information is NOT gathered during the
personal financial planning process?
Correct Answer -An individual's civic organization memberships
Life insurance creates an immediate estate. This phrase means
Correct Answer -when the insured dies, a death benefit is paid
All of these are common personal uses of life insurance EXCEPT
Correct Answer -Fund a buy-sell agreement
Buy-sell agreements are typically by which two insurance products?
Correct Answer -Life insurance & disability insurance
,Who does a life settlement broker represent?
Correct Answer -Individual wanting to sell their life policy to a third party
Which of the following does not have to be included on life insurance
policy illustrations?
Correct Answer -Statement that all values and benefits are guaranteed
Which of the following is NOT an important reason for a life insurance
application?
Correct Answer -The beneficiary must sign the application before the
insurer will issue the policy
What must an applicant do in order to authorize the release of an
attending physician report?
Correct Answer -sign a consent form
An applicant has revealed conditions that require more information.
Which of the following is next?
Correct Answer -Attending physician's statement
Which of the following risk classification's charges the highest premium?
Correct Answer -Substandard
Which of the following types of information is NOT required for a life
insurance application?
Correct Answer -ethnicity
, A terminated employee that has exercised the conversion privilege is able
to convert
Correct Answer -term insurance into permanent insurance
Who are the parties to the master contract in a group life insurance
policy?
Correct Answer -Insurer and employer
Which of the following describes a contributory group insurance plan?
Correct Answer -Part of the premium is paid by the employee
Which of the following is NOT a requirement for a terminated employee
that has exercised the conversion privilege?
Correct Answer -Provide proof of insurability
Which of the following is not a characteristic of the conversion privilege?
Correct Answer -Employer pays the premium for the converted policy
How is the cost of employer-provided group life insurance with coverage
amounts above $50,000 treated for tax purposes?
Correct Answer -Taxable income to the employee
After a policy has lapsed, which provision allows the insurer to continue
coverage
Correct Answer -Reinstatement provision
In a life insurance policy, the entire contract consists of
Correct Answer -policy and attached application
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