PSI: Life, Accident, And Health Practice Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

PSI: Life, Accident, And Health Practice Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified What does elimination period mean? Waiting period before benefits What is total disability? Inability to perform job duties What is partial disability? Limited ability to work What does coordination of benefits prevent? Overpayment of claims What is an HMO? Managed care plan What is a PPO? Preferred provider network plan 2 What is Medicaid? Government health assistance What is Medicare Part A? Hospital insurance What is Medicare Part B? Medical insurance What is Medicare Part D? Prescription drug coverage What is an insurance producer? Licensed insurance seller What is fiduciary responsibility? Duty to act in client’s best interest What does replacement regulation protect against? Unnecessary policy changes What is a policy illustration? 3 Projected policy values What does policy loan allow? Borrowing against cash value What happens if a policy loan is unpaid at death? Deducted from benefit What is an assignment of policy? Transfer of ownership rights What is group insurance? Coverage for a group of people What is conversion privilege? Change term to permanent without evidence What does waiver of premium rider do? Waives premiums during disability What is the primary purpose of life insurance? To provide financial protection to beneficiaries after death 4 What does the policyowner pay to keep insurance active? Premium Who receives the death benefit from a life insurance policy? Beneficiary What type of life insurance provides coverage for a specific period? Term life insurance What happens if a term life policy expires while the insured is alive? Coverage ends with no payout What type of life insurance builds cash value? Permanent life insurance What is cash value in a life insurance