PSI LIFE EXAM COMPREHENSIVE SCRIPT
2026 COMPLETE QUESTIONS AND
SOLUTIONS GRADED A+
⩥ All of the following are TRUE regarding regulation and use of an
agency name EXCEPT
1
the use of the name must not mislead the public in any way.
2
the company must file with the commissioner and request approval of
the name.
3
a name would not be denied on the basis of being too similar to other
company names.
4
the name may not imply the agency offers services for which it is not
licensed or approved. Answer: 3
a name would not be denied on the basis of being too similar to other
company names.
⩥ What do all long-term care insurers, agents, and brokers owe to the
policyholder or prospective policyholder?
,1
a duty of honesty, good faith, and fair dealing
2
a duty to provide courteous and confidential service
3
a duty to provide the best price available for the coverage
4
a duty of integrity, compassion, and considerate service. Answer: 1
a duty of honesty, good faith, and fair dealing
⩥ After what time period is the policy considered to have been delivered
in an acceptable way if premiums have been paid?
1
after 6 months if the premiums have been paid
2
after 1 year if the premiums have been paid by the insured
3
30 days after the first premium has been received by the insurer
4
only if a written receipt is obtained at the time of delivery, regardless of
paid premiums. Answer: 1
,after 6 months if the premiums have been paid
⩥ Which is an INACCURATE statement regarding inflation protection
for long-term care insurance?
1
Increases are compounded annually at a rate not less than 5 percent.
2
Guarantees the insured individual the right to periodically increase
benefit levels.
3
The protection covers a specified percentage of actual or reasonable
charges, and includes a maximum specified indemnity amount.
4
Insurers shall offer to each policyholder or certificate holder the option
to add an inflation protection feature with their policy at the time of
purchase.. Answer: 3
The protection covers a specified percentage of actual or reasonable
charges, and includes a maximum specified indemnity amount.
⩥ How long does an employee in a group insurance policy have to
exercise the conversion privilege after employment is terminated?
1
, 0 days with no eligible coverage once the employment is terminated
2
31 days to use the conversion privilege and begin an individual life
insurance policy.
3
90 days to convert to an individual policy equal to the coverage under
the group policy
4
6 months to exercise the conversion privilege after termination if the
employee was ill-treated. Answer: 2
31 days to use the conversion privilege and begin an individual life
insurance policy.
⩥ What are the requirements for notices required by any provision of the
insurance code to a person unless expressly provided otherwise?
1
They should be made by telephone on a recorded line.
2
They should be received by email to their registered email address.
3
They should be sent to a mailing notice at their residence or place of
business.
4
2026 COMPLETE QUESTIONS AND
SOLUTIONS GRADED A+
⩥ All of the following are TRUE regarding regulation and use of an
agency name EXCEPT
1
the use of the name must not mislead the public in any way.
2
the company must file with the commissioner and request approval of
the name.
3
a name would not be denied on the basis of being too similar to other
company names.
4
the name may not imply the agency offers services for which it is not
licensed or approved. Answer: 3
a name would not be denied on the basis of being too similar to other
company names.
⩥ What do all long-term care insurers, agents, and brokers owe to the
policyholder or prospective policyholder?
,1
a duty of honesty, good faith, and fair dealing
2
a duty to provide courteous and confidential service
3
a duty to provide the best price available for the coverage
4
a duty of integrity, compassion, and considerate service. Answer: 1
a duty of honesty, good faith, and fair dealing
⩥ After what time period is the policy considered to have been delivered
in an acceptable way if premiums have been paid?
1
after 6 months if the premiums have been paid
2
after 1 year if the premiums have been paid by the insured
3
30 days after the first premium has been received by the insurer
4
only if a written receipt is obtained at the time of delivery, regardless of
paid premiums. Answer: 1
,after 6 months if the premiums have been paid
⩥ Which is an INACCURATE statement regarding inflation protection
for long-term care insurance?
1
Increases are compounded annually at a rate not less than 5 percent.
2
Guarantees the insured individual the right to periodically increase
benefit levels.
3
The protection covers a specified percentage of actual or reasonable
charges, and includes a maximum specified indemnity amount.
4
Insurers shall offer to each policyholder or certificate holder the option
to add an inflation protection feature with their policy at the time of
purchase.. Answer: 3
The protection covers a specified percentage of actual or reasonable
charges, and includes a maximum specified indemnity amount.
⩥ How long does an employee in a group insurance policy have to
exercise the conversion privilege after employment is terminated?
1
, 0 days with no eligible coverage once the employment is terminated
2
31 days to use the conversion privilege and begin an individual life
insurance policy.
3
90 days to convert to an individual policy equal to the coverage under
the group policy
4
6 months to exercise the conversion privilege after termination if the
employee was ill-treated. Answer: 2
31 days to use the conversion privilege and begin an individual life
insurance policy.
⩥ What are the requirements for notices required by any provision of the
insurance code to a person unless expressly provided otherwise?
1
They should be made by telephone on a recorded line.
2
They should be received by email to their registered email address.
3
They should be sent to a mailing notice at their residence or place of
business.
4
