PSI Insurance Exam Questions and
Answers (Solved Papers)
What is it called when a life insurance policy pays a multiple
of the coverage amount when certain types of accidents
occur? - Correct Answers ✅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? - Correct Answers ✅30 days
Which of the following statements regarding a pure life
annuity payout option is correct? - Correct Answers ✅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? -
Correct Answers ✅fraudulent misstatements
If an individual is insured by both their own health insurance
policy and their spouse's policy, which policy pays first in the
event of an illness? - Correct Answers ✅The individual's
policy pays first, the spouse's policy pays the remaining up to
coverage amount.
When can the premiums of an individually owned health
insurance policy be deducted from the individual's income
tax? - Correct Answers ✅when the taxpayer's
,PSI Insurance Exam Questions and
Answers (Solved Papers)
unreimbursed medical expenses exceed 7.5% of adjusted
gross income during a taxable year
When the suicide clause is inserted in a life insurance
contract, death by suicide is not covered during the policy's
initial - Correct Answers ✅2 year period.
Which of the following is a characteristic of Health
Maintenance Organizations (HMOs)? - Correct Answers
✅preventive care
The life insurance policy will not be truly effective until all of
the following occur EXCEPT - Correct Answers ✅the
producer has explained the policy to the client.
Under which situation must insurable interest exist between
the applicant and insured at the time of application? -
Correct Answers ✅when a third-party applicant names
themselves beneficiary
Which of the following is a distinguishing feature of a variable
life insurance policy? - Correct Answers ✅The cash value
earnings are based on the performance of the separate
account.
The person who receives the benefit of an annuity is known
as the - Correct Answers ✅annuitant.
,PSI Insurance Exam Questions and
Answers (Solved Papers)
Which of the following is an example of a premium payment
mode? - Correct Answers ✅annual premium payment
How do most disability policies handle the case of a recurrent
disability occurring at least 90 days after the first claim? -
Correct Answers ✅it must be handled as a new claim for a
new period of disability, requiring a new elimination period.
Which of the following is true for most comprehensive dental
policies? - Correct Answers ✅Routine care is provided
without coinsurance or deductibles.
Under a Medicare Supplement Policy, preexisting conditions
CANNOT be excluded after how many months from the
effective date of the policy? - Correct Answers ✅6 months
What does an application for insurance contractually
represent for the insured? - Correct Answers ✅an offer
Which of the following is exempted from the incontestability
provision in insurance policies? - Correct Answers
✅fraudulent misstatements
Which of the following may be thought of as a time
deductible rather than a dollar deductible in a disability
, PSI Insurance Exam Questions and
Answers (Solved Papers)
income policy because benefits are not payable during that
time? - Correct Answers ✅elimination period
How long after being entitled to Social Security disability
benefits will an individual be eligible to receive Medicare
benefits? - Correct Answers ✅2 years
If a policy is determined to be a Modified Endowment
Contract (MEC), funds received under the policy will be -
Correct Answers ✅considered taxable income first.
Which type of annuity attempts to offset inflation by
providing a benefit linked to an underlying investment
account? - Correct Answers ✅variable
What is a MIB report? - Correct Answers ✅medical
information on an applicant for assessing life or health
insurance risk
Group Life Policies typically include which of the following
provisions? - Correct Answers ✅conversion privilege
In a case where an individual's health is insured by both their
own policy and their spouse's policy, which policy pays in the
event of an illness? - Correct Answers ✅The individual's
policy pays first, the spouse's policy pays the remaining up to
coverage amount.
Answers (Solved Papers)
What is it called when a life insurance policy pays a multiple
of the coverage amount when certain types of accidents
occur? - Correct Answers ✅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? - Correct Answers ✅30 days
Which of the following statements regarding a pure life
annuity payout option is correct? - Correct Answers ✅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? -
Correct Answers ✅fraudulent misstatements
If an individual is insured by both their own health insurance
policy and their spouse's policy, which policy pays first in the
event of an illness? - Correct Answers ✅The individual's
policy pays first, the spouse's policy pays the remaining up to
coverage amount.
When can the premiums of an individually owned health
insurance policy be deducted from the individual's income
tax? - Correct Answers ✅when the taxpayer's
,PSI Insurance Exam Questions and
Answers (Solved Papers)
unreimbursed medical expenses exceed 7.5% of adjusted
gross income during a taxable year
When the suicide clause is inserted in a life insurance
contract, death by suicide is not covered during the policy's
initial - Correct Answers ✅2 year period.
Which of the following is a characteristic of Health
Maintenance Organizations (HMOs)? - Correct Answers
✅preventive care
The life insurance policy will not be truly effective until all of
the following occur EXCEPT - Correct Answers ✅the
producer has explained the policy to the client.
Under which situation must insurable interest exist between
the applicant and insured at the time of application? -
Correct Answers ✅when a third-party applicant names
themselves beneficiary
Which of the following is a distinguishing feature of a variable
life insurance policy? - Correct Answers ✅The cash value
earnings are based on the performance of the separate
account.
The person who receives the benefit of an annuity is known
as the - Correct Answers ✅annuitant.
,PSI Insurance Exam Questions and
Answers (Solved Papers)
Which of the following is an example of a premium payment
mode? - Correct Answers ✅annual premium payment
How do most disability policies handle the case of a recurrent
disability occurring at least 90 days after the first claim? -
Correct Answers ✅it must be handled as a new claim for a
new period of disability, requiring a new elimination period.
Which of the following is true for most comprehensive dental
policies? - Correct Answers ✅Routine care is provided
without coinsurance or deductibles.
Under a Medicare Supplement Policy, preexisting conditions
CANNOT be excluded after how many months from the
effective date of the policy? - Correct Answers ✅6 months
What does an application for insurance contractually
represent for the insured? - Correct Answers ✅an offer
Which of the following is exempted from the incontestability
provision in insurance policies? - Correct Answers
✅fraudulent misstatements
Which of the following may be thought of as a time
deductible rather than a dollar deductible in a disability
, PSI Insurance Exam Questions and
Answers (Solved Papers)
income policy because benefits are not payable during that
time? - Correct Answers ✅elimination period
How long after being entitled to Social Security disability
benefits will an individual be eligible to receive Medicare
benefits? - Correct Answers ✅2 years
If a policy is determined to be a Modified Endowment
Contract (MEC), funds received under the policy will be -
Correct Answers ✅considered taxable income first.
Which type of annuity attempts to offset inflation by
providing a benefit linked to an underlying investment
account? - Correct Answers ✅variable
What is a MIB report? - Correct Answers ✅medical
information on an applicant for assessing life or health
insurance risk
Group Life Policies typically include which of the following
provisions? - Correct Answers ✅conversion privilege
In a case where an individual's health is insured by both their
own policy and their spouse's policy, which policy pays in the
event of an illness? - Correct Answers ✅The individual's
policy pays first, the spouse's policy pays the remaining up to
coverage amount.
