PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM
WITH ALL CORRECT & 100% VERIFIED ANSWERS|
LATEST UPDATE|ALREADY GRADED A+
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 Answer-
Benefits 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 Answer-Notice of claim.
When will a policy pay on a UCR basis? ✔Correct Answer-When particular benefits are not listed
on a payment schedule.
All of the following are non-forfeiture options EXCEPT ✔Correct Answer-Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? ✔Correct Answer-The
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 Answer-The producer.
What is the waiver of premium provision? ✔Correct Answer-In 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 Answer-Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? ✔Correct Answer-The actual amount of
the annuity benefit cannot be determined in advance.
What does coninsurance mean? ✔Correct Answer-The 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 Answer-The 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 Answer-The 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 Answer-Any
chronic health condition that presents symptoms and which was unknown at the time of application.
Which is the difference between participating and non-participating? ✔Correct Answer-
Participating policies pay dividends while non-participating policies do not.
, How does the per captia rule apply to proceeds from a life insurance policy? ✔Correct Answer-The
proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? ✔Correct Answer-
With 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 Answer-Mode
What is the return of premium rider? ✔Correct Answer-An 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 Answer-As 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 Answer-2 year period
All of the following are required signatures on a life insurance application EXCEPT? ✔Correct
Answer-The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? ✔Correct Answer-The 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
Answer-The applicant and possibly the agent initial any changes made.
What specific new procedures does the USA Patriot Act require of insurance program? ✔Correct
Answer-Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the initial premium
paid? ✔Correct Answer-The underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT? ✔Correct Answer-Medical Underwriting exam.
Why are insurance policies considered conditional contracts? ✔Correct Answer-Certain conditions
need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? ✔Correct Answer-When the
applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT? ✔Correct Answer-The
incomplete application can be accepted with the missing information added later.
What is a MIB report? ✔Correct Answer-Medical information on an applicant for assessing life or
health insurance risk.
WITH ALL CORRECT & 100% VERIFIED ANSWERS|
LATEST UPDATE|ALREADY GRADED A+
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 Answer-
Benefits 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 Answer-Notice of claim.
When will a policy pay on a UCR basis? ✔Correct Answer-When particular benefits are not listed
on a payment schedule.
All of the following are non-forfeiture options EXCEPT ✔Correct Answer-Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? ✔Correct Answer-The
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 Answer-The producer.
What is the waiver of premium provision? ✔Correct Answer-In 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 Answer-Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? ✔Correct Answer-The actual amount of
the annuity benefit cannot be determined in advance.
What does coninsurance mean? ✔Correct Answer-The 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 Answer-The 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 Answer-The 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 Answer-Any
chronic health condition that presents symptoms and which was unknown at the time of application.
Which is the difference between participating and non-participating? ✔Correct Answer-
Participating policies pay dividends while non-participating policies do not.
, How does the per captia rule apply to proceeds from a life insurance policy? ✔Correct Answer-The
proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? ✔Correct Answer-
With 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 Answer-Mode
What is the return of premium rider? ✔Correct Answer-An 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 Answer-As 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 Answer-2 year period
All of the following are required signatures on a life insurance application EXCEPT? ✔Correct
Answer-The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? ✔Correct Answer-The 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
Answer-The applicant and possibly the agent initial any changes made.
What specific new procedures does the USA Patriot Act require of insurance program? ✔Correct
Answer-Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the initial premium
paid? ✔Correct Answer-The underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT? ✔Correct Answer-Medical Underwriting exam.
Why are insurance policies considered conditional contracts? ✔Correct Answer-Certain conditions
need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? ✔Correct Answer-When the
applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT? ✔Correct Answer-The
incomplete application can be accepted with the missing information added later.
What is a MIB report? ✔Correct Answer-Medical information on an applicant for assessing life or
health insurance risk.
