PSI Life Insurance Test (solved) Questions
with correct verified detailed Answers
latest updated version 2025 graded A+
assured success
How long after being entitled to disability benefits will an individual
be eligible to receive Medicare benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65 --- correct precise answer ---2 years
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the
total of premiums paid up to the current point
B. a provision that allows the insured to cancel the policy in the first
two years and have premiums refunded
C. an increasing amount of term insurance that equals the cash value
of the policy at any point in time
D. a provision that states the insurer must return any premiums paid
during the free-look period --- correct precise answer ---an increasing
,amount of term insurance that always equals the total of premiums
paid up to the current point
In a home healthcare benefit, all of the following are eligible expenses
EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
C. blood transfusions
D. medical social services; --- correct precise answer ---blood
transfusions
All of the following are classifications of risk EXCEPT
A. substandard
B. preferred
C. declined
D. non-nicotine --- correct precise answer ---non-nicotine
Which of the following is exempted from the incontestability
provision in insurance policies?
A. fraudulent misstatements
B. pre-existing conditions
,C. change in health
D. changes in the insurance code --- correct precise answer ---
fraudulent misstatements
A group conversion option may be used in all the following instances
EXCEPT
A. the termination of the master policy.
B. loss of coverage due to loss of employment.
C. loss of eligibility on the part of a class of insureds.
D. a life-changing event, such as marriage, divorce, or childbirth. ---
correct precise answer ---a life-changing event, such as marriage,
divorce, or childbirth.
Which of the following is characteristic of a non-qualified plan?
A. defined vesting schedule
B. plan established by the employer
C. plan does not meet federal guidelines for tax benefits
D. employer contributions are deductible business expenses --- correct
precise answer ---plan does not meet federal guidelines for tax
benefits
, What does it mean if a health policy is conditionally renewable?
A. Insurer may elect NOT to renew based on the health of the insured.
B. Insurer may elect NOT to renew for any reason only on the policy
anniversary or premium due date.
C. Insurer may elect NOT to renew only under conditions specified in
the policy.
D. Insurer may elect NOT to review if the insured exceeds the
maximum number of claims. --- correct precise answer ---Insurer may
elect NOT to renew only under conditions specified in the policy.
Which of the following is TRUE of an equity-indexed annuity?
A. It is a variable annuity.
B. It may decrease in value.
C. It requires a securities license to sell.
D. It has a guaranteed minimum interest rate. --- correct precise
answer ---It has a guaranteed minimum interest rate
During which period of a Disability Income Policy is coverage effective
but during which no benefits will be paid under the policy?
A. benefit period
B. elimination period
with correct verified detailed Answers
latest updated version 2025 graded A+
assured success
How long after being entitled to disability benefits will an individual
be eligible to receive Medicare benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65 --- correct precise answer ---2 years
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the
total of premiums paid up to the current point
B. a provision that allows the insured to cancel the policy in the first
two years and have premiums refunded
C. an increasing amount of term insurance that equals the cash value
of the policy at any point in time
D. a provision that states the insurer must return any premiums paid
during the free-look period --- correct precise answer ---an increasing
,amount of term insurance that always equals the total of premiums
paid up to the current point
In a home healthcare benefit, all of the following are eligible expenses
EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
C. blood transfusions
D. medical social services; --- correct precise answer ---blood
transfusions
All of the following are classifications of risk EXCEPT
A. substandard
B. preferred
C. declined
D. non-nicotine --- correct precise answer ---non-nicotine
Which of the following is exempted from the incontestability
provision in insurance policies?
A. fraudulent misstatements
B. pre-existing conditions
,C. change in health
D. changes in the insurance code --- correct precise answer ---
fraudulent misstatements
A group conversion option may be used in all the following instances
EXCEPT
A. the termination of the master policy.
B. loss of coverage due to loss of employment.
C. loss of eligibility on the part of a class of insureds.
D. a life-changing event, such as marriage, divorce, or childbirth. ---
correct precise answer ---a life-changing event, such as marriage,
divorce, or childbirth.
Which of the following is characteristic of a non-qualified plan?
A. defined vesting schedule
B. plan established by the employer
C. plan does not meet federal guidelines for tax benefits
D. employer contributions are deductible business expenses --- correct
precise answer ---plan does not meet federal guidelines for tax
benefits
, What does it mean if a health policy is conditionally renewable?
A. Insurer may elect NOT to renew based on the health of the insured.
B. Insurer may elect NOT to renew for any reason only on the policy
anniversary or premium due date.
C. Insurer may elect NOT to renew only under conditions specified in
the policy.
D. Insurer may elect NOT to review if the insured exceeds the
maximum number of claims. --- correct precise answer ---Insurer may
elect NOT to renew only under conditions specified in the policy.
Which of the following is TRUE of an equity-indexed annuity?
A. It is a variable annuity.
B. It may decrease in value.
C. It requires a securities license to sell.
D. It has a guaranteed minimum interest rate. --- correct precise
answer ---It has a guaranteed minimum interest rate
During which period of a Disability Income Policy is coverage effective
but during which no benefits will be paid under the policy?
A. benefit period
B. elimination period
