PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE
EXAM ACTUAL 2026 QUESTIONS AND VERIFIED
ANSWERS
Save
Terms in this set (303)
Dividends that are received by a life The amount received that is over and above the
insurance policy holder can be amount paid into the policy via premiums is
taxed in what situation(s): considered to be gain and is therefore taxable.
I - When the dividend amount There are no dividends paid on term life
received exceeds the amount that insurance policies.
the policy holder paid in premiums
Under the misstatement of age or Benefits are adjusted to an amount that the
gender provision, what happens if it premium would have purchased at the correct
is determined at death that the age or gender.
insured's age or gender was
misstated on a life insurance policy
application?
Which of the following must be Notice of claim.
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?
,When will a policy pay on a UCR When particular benefits are not listed on a
basis? payment schedule.
All of the following are non- Cash dividend option.
forfeiture options EXCEPT
What happens when the lifetime The insured will pay all of the remaining medial
maximum benefit limit has been costs for as long as the policy is in force.
reached?
Whose responsibility is it to make The producer.
sure that the company is notified of
a death claim at the earliest
possible opportunity (in most
cases)?
What is the waiver of premium In a long term care contract, the premium is
provision? waived after the insured has been confined for a
specific period of time.
All of the following are common Committing a misdemeanor
exclusions from loss found in
disability income policies EXCEPT
for that incurred while?
Which is a disadvantage to a The actual amount of the annuity benefit cannot
flexible premium annuity? be determined in advance.
What does coninsurance mean? The insurer and the insured share expenses over
the deductible.
Under normal conditions which of The insured has 90 days from the date of loss to
the following is TRUE for proof of provide proof of loss.
loss when a single loss is claimed?
, Which one of the following The loan is not taxed while a withdrawal is taxed
represents an advantage of for amounts above the contract cost basis.
obtaining a policy loan versus a
withdrawal?
All of the following statements Any chronic health condition that presents
define preexisting conditions symptoms and which was unknown at the time of
EXCEPT? application.
Which is the difference between Participating policies pay dividends while non-
participating and non- participating policies do not.
participating?
How does the per captia rule apply The proceeds are divided equally among living
to proceeds from a life insurance primary beneficiaries.
policy?
How does a noncancelable policy With the noncancelable policy the insurer may
differ from a guaranteed renewable increase premiums only based on the terms of
policy? the policy.
Which of the following refers to Mode
how often a premium is paid?
What is the return of premium An increasing amount of term insurance that
rider? always equals the total of premiums paid up to
the current point.
What does first dollar coverage As soon as covered medical expenses are
mean? incurred, the policy begins to pay.
When the suicide clause is inserted 2 year period
in a life insurance contract, death
by suicide is not covered during the
policy's initial:
EXAM ACTUAL 2026 QUESTIONS AND VERIFIED
ANSWERS
Save
Terms in this set (303)
Dividends that are received by a life The amount received that is over and above the
insurance policy holder can be amount paid into the policy via premiums is
taxed in what situation(s): considered to be gain and is therefore taxable.
I - When the dividend amount There are no dividends paid on term life
received exceeds the amount that insurance policies.
the policy holder paid in premiums
Under the misstatement of age or Benefits are adjusted to an amount that the
gender provision, what happens if it premium would have purchased at the correct
is determined at death that the age or gender.
insured's age or gender was
misstated on a life insurance policy
application?
Which of the following must be Notice of claim.
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?
,When will a policy pay on a UCR When particular benefits are not listed on a
basis? payment schedule.
All of the following are non- Cash dividend option.
forfeiture options EXCEPT
What happens when the lifetime The insured will pay all of the remaining medial
maximum benefit limit has been costs for as long as the policy is in force.
reached?
Whose responsibility is it to make The producer.
sure that the company is notified of
a death claim at the earliest
possible opportunity (in most
cases)?
What is the waiver of premium In a long term care contract, the premium is
provision? waived after the insured has been confined for a
specific period of time.
All of the following are common Committing a misdemeanor
exclusions from loss found in
disability income policies EXCEPT
for that incurred while?
Which is a disadvantage to a The actual amount of the annuity benefit cannot
flexible premium annuity? be determined in advance.
What does coninsurance mean? The insurer and the insured share expenses over
the deductible.
Under normal conditions which of The insured has 90 days from the date of loss to
the following is TRUE for proof of provide proof of loss.
loss when a single loss is claimed?
, Which one of the following The loan is not taxed while a withdrawal is taxed
represents an advantage of for amounts above the contract cost basis.
obtaining a policy loan versus a
withdrawal?
All of the following statements Any chronic health condition that presents
define preexisting conditions symptoms and which was unknown at the time of
EXCEPT? application.
Which is the difference between Participating policies pay dividends while non-
participating and non- participating policies do not.
participating?
How does the per captia rule apply The proceeds are divided equally among living
to proceeds from a life insurance primary beneficiaries.
policy?
How does a noncancelable policy With the noncancelable policy the insurer may
differ from a guaranteed renewable increase premiums only based on the terms of
policy? the policy.
Which of the following refers to Mode
how often a premium is paid?
What is the return of premium An increasing amount of term insurance that
rider? always equals the total of premiums paid up to
the current point.
What does first dollar coverage As soon as covered medical expenses are
mean? incurred, the policy begins to pay.
When the suicide clause is inserted 2 year period
in a life insurance contract, death
by suicide is not covered during the
policy's initial:
