PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM / Exam /
Actual Questions & Certified Solutions 2025/2026.
Under the misstatement of age or gender provision, what happens if it is determined at
death that the insured's age or gender was misstated on a life insurance policy
application? - correct answerBenefits are adjusted to an amount that the premium would
have purchased at the correct age or gender.
Which of the following must be given to the insurer within 20 days after occurrence or
commencement of any loss covered by the policy, or as thereafter as is reasonably
possible? - correct answerNotice of claim.
When will a policy pay on a UCR basis? - correct answerWhen particular benefits are
not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - correct answerCash dividend
option.
What happens when the lifetime maximum benefit limit has been reached? - correct
answerThe insured will pay all of the remaining medial costs for as long as the policy is
in force.
Whose responsibility is it to make sure that the company is notified of a death claim at
the earliest possible opportunity (in most cases)? - correct answerThe producer.
What is the waiver of premium provision? - correct answerIn a long term care contract,
the premium is waived after the insured has been confined for a specific period of time.
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while? - correct answerCommitting a misdemeanor
Which is a disadvantage to a flexible premium annuity? - correct answerThe actual
amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? - correct answerThe insurer and the insured share
expenses over the deductible.
Under normal conditions which of the following is TRUE for proof of loss when a single
loss is claimed? - correct answerThe insured has 90 days from the date of loss to
provide proof of loss.
Which one of the following represents an advantage of obtaining a policy loan versus a
withdrawal? - correct answerThe loan is not taxed while a withdrawal is taxed for
amounts above the contract cost basis.
All of the following statements define preexisting conditions EXCEPT? - correct
answerAny chronic health condition that presents symptoms and which was unknown at
the time of application.
, PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM / Exam /
Actual Questions & Certified Solutions 2025/2026.
Which is the difference between participating and non-participating? - correct
answerParticipating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - correct
answerThe proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - correct
answerWith the noncancelable policy the insurer may increase premiums only based on
the terms of the policy.
Which of the following refers to how often a premium is paid? - correct answerMode
What is the return of premium rider? - correct answerAn increasing amount of term
insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - correct answerAs soon as covered medical
expenses are incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not
covered during the policy's initial: - correct answer2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
correct answerThe minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - correct answerThe
policy is originated primarily or solely for the purpose of resale.
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application? - correct answerThe applicant and possibly the agent initial any changes
made.
What specific new procedures does the USA Patriot Act require of insurance program? -
correct answerEstablish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - correct answerThe underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - correct answerMedical Underwriting exam.
Why are insurance policies considered conditional contracts? - correct answerCertain
conditions need to be met to make the contract legally enforceable.
Actual Questions & Certified Solutions 2025/2026.
Under the misstatement of age or gender provision, what happens if it is determined at
death that the insured's age or gender was misstated on a life insurance policy
application? - correct answerBenefits are adjusted to an amount that the premium would
have purchased at the correct age or gender.
Which of the following must be given to the insurer within 20 days after occurrence or
commencement of any loss covered by the policy, or as thereafter as is reasonably
possible? - correct answerNotice of claim.
When will a policy pay on a UCR basis? - correct answerWhen particular benefits are
not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - correct answerCash dividend
option.
What happens when the lifetime maximum benefit limit has been reached? - correct
answerThe insured will pay all of the remaining medial costs for as long as the policy is
in force.
Whose responsibility is it to make sure that the company is notified of a death claim at
the earliest possible opportunity (in most cases)? - correct answerThe producer.
What is the waiver of premium provision? - correct answerIn a long term care contract,
the premium is waived after the insured has been confined for a specific period of time.
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while? - correct answerCommitting a misdemeanor
Which is a disadvantage to a flexible premium annuity? - correct answerThe actual
amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? - correct answerThe insurer and the insured share
expenses over the deductible.
Under normal conditions which of the following is TRUE for proof of loss when a single
loss is claimed? - correct answerThe insured has 90 days from the date of loss to
provide proof of loss.
Which one of the following represents an advantage of obtaining a policy loan versus a
withdrawal? - correct answerThe loan is not taxed while a withdrawal is taxed for
amounts above the contract cost basis.
All of the following statements define preexisting conditions EXCEPT? - correct
answerAny chronic health condition that presents symptoms and which was unknown at
the time of application.
, PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM / Exam /
Actual Questions & Certified Solutions 2025/2026.
Which is the difference between participating and non-participating? - correct
answerParticipating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - correct
answerThe proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - correct
answerWith the noncancelable policy the insurer may increase premiums only based on
the terms of the policy.
Which of the following refers to how often a premium is paid? - correct answerMode
What is the return of premium rider? - correct answerAn increasing amount of term
insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - correct answerAs soon as covered medical
expenses are incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not
covered during the policy's initial: - correct answer2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
correct answerThe minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - correct answerThe
policy is originated primarily or solely for the purpose of resale.
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application? - correct answerThe applicant and possibly the agent initial any changes
made.
What specific new procedures does the USA Patriot Act require of insurance program? -
correct answerEstablish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - correct answerThe underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - correct answerMedical Underwriting exam.
Why are insurance policies considered conditional contracts? - correct answerCertain
conditions need to be met to make the contract legally enforceable.
