PSI Life, Accident, and Health Insurance
Practice EXAM NEWEST 2025-2026
VERSION QUESTIONS WITH GOLDEN
TIPS SOLUTIONS AND REVEWEIRS
Which of the following is TRUE of an equity-indexed annuity? - CORRECT ANSWERS It has a
guaranteed minimum interest rate
Compared to basic hospital, medical and surgical policies, which type of insurance provides broader
coverage, fewer gaps, higher individual benefits, and higher policy maximums? - CORRECT ANSWERS
major medical insurance
Which of the following is TRUE for a flexible premium annuity? - CORRECT ANSWERS The
purchaser has the option to vary the amount of each premium payment falling between a minimum and
maximum amount
Which problem was universal life insurance designed to address? - CORRECT ANSWERS low
interest rates during periods of high inflation
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in
the event of a disability? - CORRECT ANSWERS When there is a buy-sell agreement funded
with disability insurance to buyout the interest of a deceased owner or partner
A group conversion option may be used in all the following instances EXCEPT - CORRECT ANSWERS
a life-changing event, such as marriage, divorce, or childbirth
Which of the following policy types is considered double indemnity? - CORRECT ANSWERS
accidental death
Which type of life policy can be continued year after year without a required medical examination but
rates are dependent on the insured's current age? - CORRECT ANSWERS Renewable term
States generally define a true "group" for insurance as requiring a minimum of how many participants? -
CORRECT ANSWERS 10
Which of the following lists the three common types of permanent individual life insurance? - CORRECT
ANSWERS Variable Life, Whole Life, Universal Life
Which is the major reason why long term care insurance is becoming increasingly important? - CORRECT
ANSWERS As life expectancy increases, the chances of needing long term care also increase
Current assumption whole life policies are sensitive to which of the following? - CORRECT ANSWERS
interest rates
, Which of the following is true about a decreasing term life policy? - CORRECT ANSWERS The
face amount reaches zero at policy expiration
Which of the following is defined as the dollar amount beyond which the insured no longer participated
in payment of medical expenses? - CORRECT ANSWERS Stop loss limit
Which of the following coverage types pays a monthly cash benefit following the elimination period for
total disability due to accident or sickness? - CORRECT ANSWERS disability income insurance
Which type of annuity covers two or more annuitants and provides monthly income only until the first
annuitant dies? - CORRECT ANSWERS Joint life annuity
All of the following are characteristics of variable whole life EXCEPT - CORRECT ANSWERS
There is no guaranteed minimum death benefit.
Which of the following is TRUE of a point of service plan? - CORRECT ANSWERS A patient's care
is coordinated by an in-network primary care physician
Which is the primary purpose of Health Reimbursement Accounts (HRAs)? - CORRECT ANSWERS
To assist covered employees with the payment of medical expenses on a high deductible plan funded
through pre-tax contributions.
In which of the following does a covered employee agree to a reduction in compensation so the amount
can be used to cover medical expenses? - CORRECT ANSWERS Flexible Spending Account (FSA)
All of the following are characteristics of COBRA EXCEPT - CORRECT ANSWERS Change in
medical privacy procedures
Which of the following is TRUE of the limited pay whole life policy? - CORRECT ANSWERS
Coverage continues after the policy is paid-up
Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT? -
CORRECT ANSWERS Medicare
Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed? -
CORRECT ANSWERS The insured has 90 days from the date of loss to provide proof of loss
Which policy provision permits the policy owner to take a specified number of days to examine the
contract, and allows for cancellation and a full refund if the policy owner rejects the terms of costs? -
CORRECT ANSWERS Free look
Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing
home facility? - CORRECT ANSWERS Long-Term Care Rider
Which is the difference between participating and non-participating policies? - CORRECT ANSWERS
Participating policies pay dividends while non-participating policies do not.
Practice EXAM NEWEST 2025-2026
VERSION QUESTIONS WITH GOLDEN
TIPS SOLUTIONS AND REVEWEIRS
Which of the following is TRUE of an equity-indexed annuity? - CORRECT ANSWERS It has a
guaranteed minimum interest rate
Compared to basic hospital, medical and surgical policies, which type of insurance provides broader
coverage, fewer gaps, higher individual benefits, and higher policy maximums? - CORRECT ANSWERS
major medical insurance
Which of the following is TRUE for a flexible premium annuity? - CORRECT ANSWERS The
purchaser has the option to vary the amount of each premium payment falling between a minimum and
maximum amount
Which problem was universal life insurance designed to address? - CORRECT ANSWERS low
interest rates during periods of high inflation
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in
the event of a disability? - CORRECT ANSWERS When there is a buy-sell agreement funded
with disability insurance to buyout the interest of a deceased owner or partner
A group conversion option may be used in all the following instances EXCEPT - CORRECT ANSWERS
a life-changing event, such as marriage, divorce, or childbirth
Which of the following policy types is considered double indemnity? - CORRECT ANSWERS
accidental death
Which type of life policy can be continued year after year without a required medical examination but
rates are dependent on the insured's current age? - CORRECT ANSWERS Renewable term
States generally define a true "group" for insurance as requiring a minimum of how many participants? -
CORRECT ANSWERS 10
Which of the following lists the three common types of permanent individual life insurance? - CORRECT
ANSWERS Variable Life, Whole Life, Universal Life
Which is the major reason why long term care insurance is becoming increasingly important? - CORRECT
ANSWERS As life expectancy increases, the chances of needing long term care also increase
Current assumption whole life policies are sensitive to which of the following? - CORRECT ANSWERS
interest rates
, Which of the following is true about a decreasing term life policy? - CORRECT ANSWERS The
face amount reaches zero at policy expiration
Which of the following is defined as the dollar amount beyond which the insured no longer participated
in payment of medical expenses? - CORRECT ANSWERS Stop loss limit
Which of the following coverage types pays a monthly cash benefit following the elimination period for
total disability due to accident or sickness? - CORRECT ANSWERS disability income insurance
Which type of annuity covers two or more annuitants and provides monthly income only until the first
annuitant dies? - CORRECT ANSWERS Joint life annuity
All of the following are characteristics of variable whole life EXCEPT - CORRECT ANSWERS
There is no guaranteed minimum death benefit.
Which of the following is TRUE of a point of service plan? - CORRECT ANSWERS A patient's care
is coordinated by an in-network primary care physician
Which is the primary purpose of Health Reimbursement Accounts (HRAs)? - CORRECT ANSWERS
To assist covered employees with the payment of medical expenses on a high deductible plan funded
through pre-tax contributions.
In which of the following does a covered employee agree to a reduction in compensation so the amount
can be used to cover medical expenses? - CORRECT ANSWERS Flexible Spending Account (FSA)
All of the following are characteristics of COBRA EXCEPT - CORRECT ANSWERS Change in
medical privacy procedures
Which of the following is TRUE of the limited pay whole life policy? - CORRECT ANSWERS
Coverage continues after the policy is paid-up
Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT? -
CORRECT ANSWERS Medicare
Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed? -
CORRECT ANSWERS The insured has 90 days from the date of loss to provide proof of loss
Which policy provision permits the policy owner to take a specified number of days to examine the
contract, and allows for cancellation and a full refund if the policy owner rejects the terms of costs? -
CORRECT ANSWERS Free look
Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing
home facility? - CORRECT ANSWERS Long-Term Care Rider
Which is the difference between participating and non-participating policies? - CORRECT ANSWERS
Participating policies pay dividends while non-participating policies do not.
