PSI LIFE INSURANCE EXAM NEWEST
2024-2025 REAL EXAM 100+
QUESTIONS AND ACCURATE (100%
CORRECT) ANSWERS|SO FAR GRADED
A+
Which of the following occurs immediately after the application is submitted and the
initial premium paid? – ANSWER: The underwriting process begins.
What is the difference between copayment and coinsurance?– ANSWER: A copayment
is a set dollar amount, while coinsurance is set as a percentage.
Whose responsibility is it to make sure that the company is notified of a death claim at
the earliest possible opportunity (in most cases)?– ANSWER: the producer
When would dependent children's benefits for Social Security disability payments end?
– ANSWER: when the dependent reaches age 18 or 19 if still in high school
All life insurance and health insurance contracts contain all of the following EXCEPT –
ANSWER: inmaterial representations.
,An employee is laid off and converts a group health plan to an individual policy. In this
situation, the new policy – ANSWER: premium rate will be higher than the group rate.
What is the waiver of premium provision or rider ? – ANSWER: It waives the premium
after the insured has been disabled for a specific period of time.
Under the Medicare Part B home health care benefit, all of the following are eligible
expenses EXCEPT – ANSWER: blood transfusions.
Which feature of term insurance provides temporary protection that can be changed to
permanent protection within a specified number of years without evidence of
insurability? – ANSWER: convertible
Which of the following is TRUE of a point of a service plan? – ANSWER: A patient's in-
network care is coordinated by a primary care physician.
Which of the following disability income riders allows the insured to purchase additional
coverage at specified intervals without evidence of insurability? – ANSWER: future
increase option
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? – ANSWER: common disaster clause
,Which of the following plans can be purchased to provide coverage in place of Medicare
Parts A and B combined? – ANSWER: Medicare advantage
Why do equity-indexed life insurance policies have an increased premium? –
ANSWER: for increased amount of protection
When the courts look at a contract to determine the intent of the parties, which of the
following is considered? – ANSWER: the entire contract
A health insurance policy that covers dependent children MUST provide coverage for
newborns beginning – ANSWER: at the moment of birth.
An annuity that guarantees benefit payments for a specified number of years to the
annuitant or the named beneficiary is – ANSWER: an annuity certain.
Which of the following is TRUE regarding the owner's rights if an irrevocable beneficiary
is designated? – ANSWER: The owner retains the right to make the premium payment.
In which of the following cases are premiums paid by a business NOT tax deductible as
a business expense? – ANSWER: key person disability income insurance
, How do warranties differ from representations? – ANSWER: A warranty is guaranteed
to be true, a representation is believed to be true to the best of one's knowledge.
An annuitant paid $500,000 for an annuity on September 1 and expects to receive
lifetime benefit payments beginning October 1. What type of annuity was purchased? –
ANSWER: Single Premium Immediate
What is it called when a life insurance policy pays a multiple of the coverage amount
when certain types of accidents occur? – ANSWER: multiple indemnity
Upon the issuance of a conditional receipt for a renewal when the premium is paid
AFTER the time granted by the insurer, what is the maximum amount of time for
reinstatement of the policy? – ANSWER: 30 days
Which of the following statements regarding a pure life annuity payout option is correct?
– ANSWER: This option provides the highest monthly income.
Which of the following does not apply to the time limit on certain defenses provision in
health insurance policies? – ANSWER: fraudulent misstatements
2024-2025 REAL EXAM 100+
QUESTIONS AND ACCURATE (100%
CORRECT) ANSWERS|SO FAR GRADED
A+
Which of the following occurs immediately after the application is submitted and the
initial premium paid? – ANSWER: The underwriting process begins.
What is the difference between copayment and coinsurance?– ANSWER: A copayment
is a set dollar amount, while coinsurance is set as a percentage.
Whose responsibility is it to make sure that the company is notified of a death claim at
the earliest possible opportunity (in most cases)?– ANSWER: the producer
When would dependent children's benefits for Social Security disability payments end?
– ANSWER: when the dependent reaches age 18 or 19 if still in high school
All life insurance and health insurance contracts contain all of the following EXCEPT –
ANSWER: inmaterial representations.
,An employee is laid off and converts a group health plan to an individual policy. In this
situation, the new policy – ANSWER: premium rate will be higher than the group rate.
What is the waiver of premium provision or rider ? – ANSWER: It waives the premium
after the insured has been disabled for a specific period of time.
Under the Medicare Part B home health care benefit, all of the following are eligible
expenses EXCEPT – ANSWER: blood transfusions.
Which feature of term insurance provides temporary protection that can be changed to
permanent protection within a specified number of years without evidence of
insurability? – ANSWER: convertible
Which of the following is TRUE of a point of a service plan? – ANSWER: A patient's in-
network care is coordinated by a primary care physician.
Which of the following disability income riders allows the insured to purchase additional
coverage at specified intervals without evidence of insurability? – ANSWER: future
increase option
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? – ANSWER: common disaster clause
,Which of the following plans can be purchased to provide coverage in place of Medicare
Parts A and B combined? – ANSWER: Medicare advantage
Why do equity-indexed life insurance policies have an increased premium? –
ANSWER: for increased amount of protection
When the courts look at a contract to determine the intent of the parties, which of the
following is considered? – ANSWER: the entire contract
A health insurance policy that covers dependent children MUST provide coverage for
newborns beginning – ANSWER: at the moment of birth.
An annuity that guarantees benefit payments for a specified number of years to the
annuitant or the named beneficiary is – ANSWER: an annuity certain.
Which of the following is TRUE regarding the owner's rights if an irrevocable beneficiary
is designated? – ANSWER: The owner retains the right to make the premium payment.
In which of the following cases are premiums paid by a business NOT tax deductible as
a business expense? – ANSWER: key person disability income insurance
, How do warranties differ from representations? – ANSWER: A warranty is guaranteed
to be true, a representation is believed to be true to the best of one's knowledge.
An annuitant paid $500,000 for an annuity on September 1 and expects to receive
lifetime benefit payments beginning October 1. What type of annuity was purchased? –
ANSWER: Single Premium Immediate
What is it called when a life insurance policy pays a multiple of the coverage amount
when certain types of accidents occur? – ANSWER: multiple indemnity
Upon the issuance of a conditional receipt for a renewal when the premium is paid
AFTER the time granted by the insurer, what is the maximum amount of time for
reinstatement of the policy? – ANSWER: 30 days
Which of the following statements regarding a pure life annuity payout option is correct?
– ANSWER: This option provides the highest monthly income.
Which of the following does not apply to the time limit on certain defenses provision in
health insurance policies? – ANSWER: fraudulent misstatements
