PSI FINAL EXAM 2026 LATEST UPDATED 160 QUESTIONS AND
CORRECT ANSWERS COVERING THE RECENT AND MOST TESTED
QUESTIONS GUARANTEE HIGH PASSMARK
🎯 PASS THE PSI FINAL EXAM 2026 – GUARANTEED HIGH SCORE!
Struggling with life, health, disability insurance, or annuities? ✅ Don’t worry! Our latest 160-
question guide covers all the most tested topics, with correct answers you can trust. Learn
tax rules, policy options, claims, and benefits in one place—no fluff!
💡 Why this guide works:
Covers all recent & high-frequency exam questions
Step-by-step answers for quick understanding
Highlights tricky clauses & exceptions
Perfect for busy students who want to pass the first time
🚀 Your shortcut to a high pass mark is here – study smart, not hard!
1. What does the fixed amount annuity certain payment option guarantee?
A. a higher rate of return
B. the highest monthly Income
C. payments will continue until all of the funds are exhausted
D. benefits will be paid to the beneficiary for the remainder of their life
C. payments will continue until all of the funds are exhausted
2. According to the Uniform Optional Provisions, what action can the insurance company take if the
insured unintentionally understated his or her age on the original application?
A. The policy can be terminated for misrepresentation.
B. No punitive actions can be taken because the error was unintentional.
C. All amounts payable can be reduced to what they would be if the insured had reported the correct
age.
D. Current claims must be paid under the incorrect age, but future claims can be paid under the correct
age.
C. All amounts payable can be reduced to what they would be if the insured had reported the correct
age.
,3. An insured has disability Insurance through his employer. The employer pays 60% of the premium,
and the Insured pays the remaining 40%. What is the insured's tax liability for any benefits paid from
the disability plan?
A. He must pay taxes on all benefits.
B. His only tax liability Is Social Security.
C. He must pay taxes on 40% of the benefits received.
D. He must pay taxes on 60% of the benefits received.
D. He must pay taxes on 60% of the benefits received.
4. All of the following are unfair insurance trade practices EXCEPT
A. encouraging prospective clients to lapse their policy to their detriment.
B. offering a portion of the producer's commission to prospective clients.
C. issuing stock as an encouragement to purchase insurance.
D. receiving a commission as a licensed producer.
D. receiving a commission as a licensed producer.
5. Individual disability Income policies usually limit the monthly benefit to a percentage of an
insured's income to reduce
A. adverse selection.
B. claims
C. over Insurance.
D. the probationary period.
C. over Insurance.
6. All of the following are functions of the Department of Insurance EXCEPT to
A. ensure compliance with all Insurance laws.
B. see that the public interest is protected at all times.
C. maintain records of individual policies of Insurance issued.
D. assure that regulations are consistent with insurance laws.
C. maintain records of individual policies of Insurance issued.
7. A primary difference between pre-certification provision and concurrent review is that only the pre-
certification provision
,A. ls designed to be a cost containment measure.
B. Involves a review by the physician.
C. requires the consent of the patient
D. occurs before the treatment is provided
D. occurs before the treatment is provided
8. The insured and the primary beneficiary of a life insurance policy were in a car together when they
were involved in an accident. The Insured was killed instantly and the beneficiary died 10 days later.
Which policy provision will protect the rights of the contingent beneficiary to receive the policy
benefits?
A. Accidental death rider.
B. Common disaster clause.
C. Facility of payment provision
D. Spendthrift clause.
B. Common disaster clause.
9. Long-term care policies will NOT cover necessary medical services one receives in
A. an acute care unit of a hospital.
B. a nursing home.
C. one's own home.
D. an outpatient facility.
A. an acute care unit of a hospital.
10. When an insurer has the right to terminate a health insurance policy for specific reasons other
than the insured's heath, the plan is described as
A. guaranteed renewable.
B. a. conditionally renewable
C. flexibly renewable
D. condition dependent
B. a. conditionally renewable
11. The dividend option where the insurer Issues the policyowner a check for the dividend amount is
called a
A. reduced premium dividend option.
, B. cash dividend option.
C. one-year dividend option.
D. paid-up option.
B. cash dividend option.
12. An individual who Is NOT acceptable by an Insurer at standard rates because of health, habits, or
occupation is called a
A. rating risk.
B. standard risk.
C. preferred risk.
D. substandard risk.
D. substandard risk.
13. The National Do Not Call Registry guidelines permit a representative of an insurer to make
telemarketing calls to consumers who purchased Insurance from the company within
A. 18 months after the purchase.
B. 24 months after the purchase.
C. 30 months after the purchase.
D. 36 months after the purchase.
A. 18 months after the purchase.
14. Medicare supplement policies are provided by
A. the federal government.
B. state governments
C. private insurers.
D. employers
C. private insurers.
15. The Louisiana Code prohibits all of the following practices EXCEPT:
A. Misrepresentation and false advertising
B. Discrimination among persons with different risks
C. False statements about the financial condition of an insurer
D. Boycott that results in restraint of trade in the insurance business
CORRECT ANSWERS COVERING THE RECENT AND MOST TESTED
QUESTIONS GUARANTEE HIGH PASSMARK
🎯 PASS THE PSI FINAL EXAM 2026 – GUARANTEED HIGH SCORE!
Struggling with life, health, disability insurance, or annuities? ✅ Don’t worry! Our latest 160-
question guide covers all the most tested topics, with correct answers you can trust. Learn
tax rules, policy options, claims, and benefits in one place—no fluff!
💡 Why this guide works:
Covers all recent & high-frequency exam questions
Step-by-step answers for quick understanding
Highlights tricky clauses & exceptions
Perfect for busy students who want to pass the first time
🚀 Your shortcut to a high pass mark is here – study smart, not hard!
1. What does the fixed amount annuity certain payment option guarantee?
A. a higher rate of return
B. the highest monthly Income
C. payments will continue until all of the funds are exhausted
D. benefits will be paid to the beneficiary for the remainder of their life
C. payments will continue until all of the funds are exhausted
2. According to the Uniform Optional Provisions, what action can the insurance company take if the
insured unintentionally understated his or her age on the original application?
A. The policy can be terminated for misrepresentation.
B. No punitive actions can be taken because the error was unintentional.
C. All amounts payable can be reduced to what they would be if the insured had reported the correct
age.
D. Current claims must be paid under the incorrect age, but future claims can be paid under the correct
age.
C. All amounts payable can be reduced to what they would be if the insured had reported the correct
age.
,3. An insured has disability Insurance through his employer. The employer pays 60% of the premium,
and the Insured pays the remaining 40%. What is the insured's tax liability for any benefits paid from
the disability plan?
A. He must pay taxes on all benefits.
B. His only tax liability Is Social Security.
C. He must pay taxes on 40% of the benefits received.
D. He must pay taxes on 60% of the benefits received.
D. He must pay taxes on 60% of the benefits received.
4. All of the following are unfair insurance trade practices EXCEPT
A. encouraging prospective clients to lapse their policy to their detriment.
B. offering a portion of the producer's commission to prospective clients.
C. issuing stock as an encouragement to purchase insurance.
D. receiving a commission as a licensed producer.
D. receiving a commission as a licensed producer.
5. Individual disability Income policies usually limit the monthly benefit to a percentage of an
insured's income to reduce
A. adverse selection.
B. claims
C. over Insurance.
D. the probationary period.
C. over Insurance.
6. All of the following are functions of the Department of Insurance EXCEPT to
A. ensure compliance with all Insurance laws.
B. see that the public interest is protected at all times.
C. maintain records of individual policies of Insurance issued.
D. assure that regulations are consistent with insurance laws.
C. maintain records of individual policies of Insurance issued.
7. A primary difference between pre-certification provision and concurrent review is that only the pre-
certification provision
,A. ls designed to be a cost containment measure.
B. Involves a review by the physician.
C. requires the consent of the patient
D. occurs before the treatment is provided
D. occurs before the treatment is provided
8. The insured and the primary beneficiary of a life insurance policy were in a car together when they
were involved in an accident. The Insured was killed instantly and the beneficiary died 10 days later.
Which policy provision will protect the rights of the contingent beneficiary to receive the policy
benefits?
A. Accidental death rider.
B. Common disaster clause.
C. Facility of payment provision
D. Spendthrift clause.
B. Common disaster clause.
9. Long-term care policies will NOT cover necessary medical services one receives in
A. an acute care unit of a hospital.
B. a nursing home.
C. one's own home.
D. an outpatient facility.
A. an acute care unit of a hospital.
10. When an insurer has the right to terminate a health insurance policy for specific reasons other
than the insured's heath, the plan is described as
A. guaranteed renewable.
B. a. conditionally renewable
C. flexibly renewable
D. condition dependent
B. a. conditionally renewable
11. The dividend option where the insurer Issues the policyowner a check for the dividend amount is
called a
A. reduced premium dividend option.
, B. cash dividend option.
C. one-year dividend option.
D. paid-up option.
B. cash dividend option.
12. An individual who Is NOT acceptable by an Insurer at standard rates because of health, habits, or
occupation is called a
A. rating risk.
B. standard risk.
C. preferred risk.
D. substandard risk.
D. substandard risk.
13. The National Do Not Call Registry guidelines permit a representative of an insurer to make
telemarketing calls to consumers who purchased Insurance from the company within
A. 18 months after the purchase.
B. 24 months after the purchase.
C. 30 months after the purchase.
D. 36 months after the purchase.
A. 18 months after the purchase.
14. Medicare supplement policies are provided by
A. the federal government.
B. state governments
C. private insurers.
D. employers
C. private insurers.
15. The Louisiana Code prohibits all of the following practices EXCEPT:
A. Misrepresentation and false advertising
B. Discrimination among persons with different risks
C. False statements about the financial condition of an insurer
D. Boycott that results in restraint of trade in the insurance business
