PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM QUESTIONS WITH
VERIFIED ANSWERS]2026/2027]
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
Answers -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 Answers -Notice of claim.
When will a policy pay on a UCR basis? - Correct Answers -When particular benefits are not
listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - Correct Answers -Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - Correct Answers -
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 Answers -The producer.
What is the waiver of premium provision? - Correct Answers -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 Answers -Committing a misdemeanor
, Which is a disadvantage to a flexible premium annuity? - Correct Answers -The actual amount of
the annuity benefit cannot be determined in advance.
What does coninsurance mean? - Correct Answers -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 Answers -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 Answers -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 Answers -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 Answers -
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 Answers -
The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - Correct Answers
-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 Answers -Mode
PRACTICE EXAM QUESTIONS WITH
VERIFIED ANSWERS]2026/2027]
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
Answers -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 Answers -Notice of claim.
When will a policy pay on a UCR basis? - Correct Answers -When particular benefits are not
listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - Correct Answers -Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - Correct Answers -
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 Answers -The producer.
What is the waiver of premium provision? - Correct Answers -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 Answers -Committing a misdemeanor
, Which is a disadvantage to a flexible premium annuity? - Correct Answers -The actual amount of
the annuity benefit cannot be determined in advance.
What does coninsurance mean? - Correct Answers -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 Answers -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 Answers -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 Answers -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 Answers -
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 Answers -
The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - Correct Answers
-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 Answers -Mode
