PSI Life Exam Practice Test

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Prepare for the PSI Life Exam with our comprehensive flashcards and multiple choice questions. Each question offers hints and detailed explanations to enhance your understanding and readiness. Ace your exam with confidence!

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Under what condition may an intermediary receive a commission on business written on their own life?

If they are an independent broker
If they are a licensed life agent in Wisconsin
If they have claimed it on their taxes
If they are a licensed insurance adjuster

The correct answer is: If they are a licensed life agent in Wisconsin

An intermediary may receive a commission on business written on their own life if they are a licensed life agent in Wisconsin. This regulation is grounded in the state's laws regarding insurance practices, which stipulate that a licensed life agent can earn commissions on policies they sell, including those on their own lives, as long as they adhere to the applicable legal and ethical standards. The licensing ensures that the agent meets specific educational and regulatory requirements, which helps protect consumers and maintains the integrity of the insurance profession. In contrast, the other conditions presented do not align with the legal framework governing commissions in this context, thus underscoring the importance of being a licensed life agent in the specific state where the transaction occurs.