CA- PSI- Life, Accident and Health Exam test with
correct answers
1. Reduced Paid Up: Nonforfeiture option provides new whole life policy at
reduced face amount of protection. Provides coverage for longest time.
2. Extended Term: Nonforfeiture option provides new TERM policy with same
face amount of coverage as original policy
3. Guaranteed Lifetime Withdrawal: Annuity rider that assures owner will at
least get amount paid for the annuity
4. Guaranteed Minimum Income: Rider that guarantees you will get a set
amount annually
5. Paid-Up Additions: Increase the death benefit of the original policy by the
amount the dividend will buy
6. Needs Approach: The predicted needs of a family after the premature death
of the insured
7. 3 Factors that determine premium of life insurance policy: Mortality,
Interest, Expense
8. Optionally Renewable: Allows insurer to terminate policy for any reason or
increase premiums for a class of insureds on specified date. Only allowed to
terminate on premium due dates
9. Monthly Premium for health insurance- How long is grace period: 10 days
for monthly pay mode. 7 days for weekly pay mode. 31 days for all other modes.
10. Purpose of Coinsurance provision: Prevent overutilization of policy benefits
11. What does "level" refer to in level term insurance?: Face Amount
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correct answers
1. Reduced Paid Up: Nonforfeiture option provides new whole life policy at
reduced face amount of protection. Provides coverage for longest time.
2. Extended Term: Nonforfeiture option provides new TERM policy with same
face amount of coverage as original policy
3. Guaranteed Lifetime Withdrawal: Annuity rider that assures owner will at
least get amount paid for the annuity
4. Guaranteed Minimum Income: Rider that guarantees you will get a set
amount annually
5. Paid-Up Additions: Increase the death benefit of the original policy by the
amount the dividend will buy
6. Needs Approach: The predicted needs of a family after the premature death
of the insured
7. 3 Factors that determine premium of life insurance policy: Mortality,
Interest, Expense
8. Optionally Renewable: Allows insurer to terminate policy for any reason or
increase premiums for a class of insureds on specified date. Only allowed to
terminate on premium due dates
9. Monthly Premium for health insurance- How long is grace period: 10 days
for monthly pay mode. 7 days for weekly pay mode. 31 days for all other modes.
10. Purpose of Coinsurance provision: Prevent overutilization of policy benefits
11. What does "level" refer to in level term insurance?: Face Amount
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