PSI Life, Accident, and Health Exam
Questions with Correct Answers |
Verified Q&A Review | Graded A+
‣ In the context of insurable risks, insurance companies rely on which
element to set appropriate premium prices? Answer: calculable
premiums
‣ As a broker, you are assisting your client in finding appropriate
insurance coverage. In order to ensure that the company offering the
insurance is authorized to do so in their state, you should look for a(an)
Answer: admitted insurer.
‣ In the context of insurance, which type of contract involves one party
making a legally enforceable promise while the other party has the
option to perform a requested action? Answer: Unilateral contract
‣ In a life insurance contract, what term describes the combined policy
and application as a comprehensive agreement between the policyowner
and the insurer? Answer: Entire Contract Provision.
‣ In the context of the Law of Agency, an insurance broker primarily
represents the interests of Answer: the insurance company.
,‣ In a scenario where an applicant and an agent cannot remember the
modifications made to an insurance application, what method can the
insurer use to ensure both parties acknowledge and agree on the
changes? Answer: Initialing the changes
‣ As a life insurance agent, you know that when courts evaluate a
contract to determine the parties' intentions, they take into account
specific documents. Which documents are considered in this process?
Answer: Entire contract and application
‣ When does insurable interest need to be established between the
applicant and insured during a life insurance application? Answer:
Third-party applicant as beneficiary
‣ As a life insurance agent, which dividend option would you
recommend to a client who wants to shorten their premium payment
period? Answer: Paid-Up Life option
‣ When using the Needs Approach to calculate the amount of personal
life insurance required, which factor is NOT considered? Answer:
Future sales
‣ In a situation where business partners need life insurance policies on
each other for financial protection, they should opt for: Answer: Cross-
Purchase Plan
, ‣ In a key person life insurance policy, who holds which roles? Answer:
Corporation is applicant and policy holder; employee is insured.
‣ Which components are used to determine the Gross Premium for a life
insurance policy? Answer: Risk, Expense, Interest
‣ What term indicates the frequency of premium payments in a life
insurance policy? Answer: Mode
‣ Which individual does not need to sign an application for a Life
policy? Answer: Beneficiary
‣ As a broker, you review an application where the applicant knowingly
provided false information. This is considered: Answer: a
misrepresentation
‣ As a producing agent delivering a Major Medical policy that was not
prepaid, what must you collect from the insured alongside the initial
premium? Answer: Statement of Continued Good Health
‣ When does a life insurance policy covering dependent children start
providing coverage for a newborn? Answer: Moment of birth
‣ If a life insurance policy is issued without an initial premium, what
must the producer do when delivering the policy to the insured? Answer:
Deliver policy and collect premium
Questions with Correct Answers |
Verified Q&A Review | Graded A+
‣ In the context of insurable risks, insurance companies rely on which
element to set appropriate premium prices? Answer: calculable
premiums
‣ As a broker, you are assisting your client in finding appropriate
insurance coverage. In order to ensure that the company offering the
insurance is authorized to do so in their state, you should look for a(an)
Answer: admitted insurer.
‣ In the context of insurance, which type of contract involves one party
making a legally enforceable promise while the other party has the
option to perform a requested action? Answer: Unilateral contract
‣ In a life insurance contract, what term describes the combined policy
and application as a comprehensive agreement between the policyowner
and the insurer? Answer: Entire Contract Provision.
‣ In the context of the Law of Agency, an insurance broker primarily
represents the interests of Answer: the insurance company.
,‣ In a scenario where an applicant and an agent cannot remember the
modifications made to an insurance application, what method can the
insurer use to ensure both parties acknowledge and agree on the
changes? Answer: Initialing the changes
‣ As a life insurance agent, you know that when courts evaluate a
contract to determine the parties' intentions, they take into account
specific documents. Which documents are considered in this process?
Answer: Entire contract and application
‣ When does insurable interest need to be established between the
applicant and insured during a life insurance application? Answer:
Third-party applicant as beneficiary
‣ As a life insurance agent, which dividend option would you
recommend to a client who wants to shorten their premium payment
period? Answer: Paid-Up Life option
‣ When using the Needs Approach to calculate the amount of personal
life insurance required, which factor is NOT considered? Answer:
Future sales
‣ In a situation where business partners need life insurance policies on
each other for financial protection, they should opt for: Answer: Cross-
Purchase Plan
, ‣ In a key person life insurance policy, who holds which roles? Answer:
Corporation is applicant and policy holder; employee is insured.
‣ Which components are used to determine the Gross Premium for a life
insurance policy? Answer: Risk, Expense, Interest
‣ What term indicates the frequency of premium payments in a life
insurance policy? Answer: Mode
‣ Which individual does not need to sign an application for a Life
policy? Answer: Beneficiary
‣ As a broker, you review an application where the applicant knowingly
provided false information. This is considered: Answer: a
misrepresentation
‣ As a producing agent delivering a Major Medical policy that was not
prepaid, what must you collect from the insured alongside the initial
premium? Answer: Statement of Continued Good Health
‣ When does a life insurance policy covering dependent children start
providing coverage for a newborn? Answer: Moment of birth
‣ If a life insurance policy is issued without an initial premium, what
must the producer do when delivering the policy to the insured? Answer:
Deliver policy and collect premium
