PSI LIFE INSURANCE EXAM LATEST 2025-2026 REAL
EXAM QUESTIONS AND WELL ELABORATED ANSWERS
LATEST UPDATE ALREADY A GRADED NEW!!!
Insurance companies determine risk exposure by which
of the following?
Insurance exchanges
Population table data
Law of large numbers and risk pooling
Insurable interest - ANSWER ->Law of large numbers and
risk pooling
An example of naming a beneficiary by class would be
To the child born of my union with Ned Jackson: Scott
Jackson
,To Ned Jackson
To the children born of my union with Ned Jackson
To the children born of my union with Ned Jackson:
David Jackson, Jennifer Jackson, and Scott Jackson -
ANSWER ->To the children born of my union with Ned
Jackson
What does a life insurance policy guarantee to the stated
beneficiary upon the death of the insured?
Policy's cash value
Funeral expense fund
Specified amount of money
Policy Dividend - ANSWER ->Specified amount of money
Which federal government agency enforces the security
laws enacted by Congress?
The Securities Exchange Commission
The National Securities Regulatory Commission
The Variable Investment Commission
The Securities Investment Commission - ANSWER ->The
Securities Exchange Commission
In conjunction with a Washington insurance license
renewal, which one of the following is the continuing
education REQUIREMENT?
12 hours annually
,15 hours annually
26 hours every 3 years
24 hours every 2 years - ANSWER ->24 hours every 2
years
Which type of clause describes the following statement:
"We have issued the policy in consideration of the
representations in your applications and payment of the
first-term premium"?
Premium clause
Adhesion clause
Contestability clause
Consideration clause - ANSWER ->Consideration clause
What provision states that the policy and the application
shall constitute the entire contract between the parties?
Consideration
Entire contract
Whole contract
Estoppel - ANSWER ->Entire contract
When calculating the amount of life insurance needed
for an income earner, what has to be determined when
using the Needs Approach?
The insurance company's financial rating
The income earner's credit score
, The family's financial objectives if the income earner
were to die or become disabled
The income earner's future projected income - ANSWER -
>The family's financial objectives if the income earner
were to die or become disabled
People with higher loss exposure have the tendency to
purchase insurance more often than those at average
risk. This is called
adverse selection
risk retention
preexisting conditions
law of large numbers - ANSWER ->adverse selection
In Washington, an insurance producer cannot sell, solicit,
or negotiate policies for an insurer unless there is an
agreement in place between the producer and insurer.
This agreement is called a(n)
designation
binder
appointment
license - ANSWER ->appointment
What does the word "level" in Level Term describe?
The premium payments
The period of coverage
EXAM QUESTIONS AND WELL ELABORATED ANSWERS
LATEST UPDATE ALREADY A GRADED NEW!!!
Insurance companies determine risk exposure by which
of the following?
Insurance exchanges
Population table data
Law of large numbers and risk pooling
Insurable interest - ANSWER ->Law of large numbers and
risk pooling
An example of naming a beneficiary by class would be
To the child born of my union with Ned Jackson: Scott
Jackson
,To Ned Jackson
To the children born of my union with Ned Jackson
To the children born of my union with Ned Jackson:
David Jackson, Jennifer Jackson, and Scott Jackson -
ANSWER ->To the children born of my union with Ned
Jackson
What does a life insurance policy guarantee to the stated
beneficiary upon the death of the insured?
Policy's cash value
Funeral expense fund
Specified amount of money
Policy Dividend - ANSWER ->Specified amount of money
Which federal government agency enforces the security
laws enacted by Congress?
The Securities Exchange Commission
The National Securities Regulatory Commission
The Variable Investment Commission
The Securities Investment Commission - ANSWER ->The
Securities Exchange Commission
In conjunction with a Washington insurance license
renewal, which one of the following is the continuing
education REQUIREMENT?
12 hours annually
,15 hours annually
26 hours every 3 years
24 hours every 2 years - ANSWER ->24 hours every 2
years
Which type of clause describes the following statement:
"We have issued the policy in consideration of the
representations in your applications and payment of the
first-term premium"?
Premium clause
Adhesion clause
Contestability clause
Consideration clause - ANSWER ->Consideration clause
What provision states that the policy and the application
shall constitute the entire contract between the parties?
Consideration
Entire contract
Whole contract
Estoppel - ANSWER ->Entire contract
When calculating the amount of life insurance needed
for an income earner, what has to be determined when
using the Needs Approach?
The insurance company's financial rating
The income earner's credit score
, The family's financial objectives if the income earner
were to die or become disabled
The income earner's future projected income - ANSWER -
>The family's financial objectives if the income earner
were to die or become disabled
People with higher loss exposure have the tendency to
purchase insurance more often than those at average
risk. This is called
adverse selection
risk retention
preexisting conditions
law of large numbers - ANSWER ->adverse selection
In Washington, an insurance producer cannot sell, solicit,
or negotiate policies for an insurer unless there is an
agreement in place between the producer and insurer.
This agreement is called a(n)
designation
binder
appointment
license - ANSWER ->appointment
What does the word "level" in Level Term describe?
The premium payments
The period of coverage
