2025 update | PSI LIfe Insurance Exam | latest|
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS (100%
Correct solutions) GET IT 100% ACCURATE!!
All of the following are TRUE regarding incomplete applications
EXCEPT - ANSWER-the incomplete application can be accepted with
the missing information added later.
Why are insurance policies considered conditional contracts? -
ANSWER-Certain conditions need to be met to make the contract
legally enforceable.
When does insurable interest come into play in a life insurance
policy? - ANSWER-when the applicant for the policy is not the
insured
Which type of receipt makes the insurer liable for the risk from the
date of application, regardless of the applicant's insurability? -
ANSWER-binding receipt
,What specific new procedures does the USA Patriot Act require of
insurance companies? - ANSWER-Establish an anti-money
laundering program
What is the purpose of Stranger-originated life insurance (STOLI)?
- ANSWER-he policy originated primarily or solely for the purpose
of resale.
During which period of a Disability Income Policy is coverage
effective but during which no benefits will be paid under the policy?
- ANSWER-Probationary period
All of the following are common exclusions from loss found in
disability income policies EXCEPT for that incurred while - ANSWER-
committing a misdemeanor
What is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? - ANSWER-insured original
issue age is used
, How does a noncancelable policy differ from a guaranteed
renewable policy? - ANSWER-With the noncancelable policy the
insurer may increase premiums only based on the terms of the
policy.
What does first dollar coverage mean? - ANSWER-As soon as
covered medical expenses are incurred, the policy begins to pay.
What is the maximum amount of time the insured has to file legal
action against the insurer after written proof of loss is provided? -
ANSWER-3 years
What is a MIB report? - ANSWER-medical information on an
applicant for assessing life or health insurance risk
How do warranties differ from representations? - ANSWER-a
warranty is guaranteed to be true, a representation is believed to
be true to the best of one's knowledge.
COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS (100%
Correct solutions) GET IT 100% ACCURATE!!
All of the following are TRUE regarding incomplete applications
EXCEPT - ANSWER-the incomplete application can be accepted with
the missing information added later.
Why are insurance policies considered conditional contracts? -
ANSWER-Certain conditions need to be met to make the contract
legally enforceable.
When does insurable interest come into play in a life insurance
policy? - ANSWER-when the applicant for the policy is not the
insured
Which type of receipt makes the insurer liable for the risk from the
date of application, regardless of the applicant's insurability? -
ANSWER-binding receipt
,What specific new procedures does the USA Patriot Act require of
insurance companies? - ANSWER-Establish an anti-money
laundering program
What is the purpose of Stranger-originated life insurance (STOLI)?
- ANSWER-he policy originated primarily or solely for the purpose
of resale.
During which period of a Disability Income Policy is coverage
effective but during which no benefits will be paid under the policy?
- ANSWER-Probationary period
All of the following are common exclusions from loss found in
disability income policies EXCEPT for that incurred while - ANSWER-
committing a misdemeanor
What is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? - ANSWER-insured original
issue age is used
, How does a noncancelable policy differ from a guaranteed
renewable policy? - ANSWER-With the noncancelable policy the
insurer may increase premiums only based on the terms of the
policy.
What does first dollar coverage mean? - ANSWER-As soon as
covered medical expenses are incurred, the policy begins to pay.
What is the maximum amount of time the insured has to file legal
action against the insurer after written proof of loss is provided? -
ANSWER-3 years
What is a MIB report? - ANSWER-medical information on an
applicant for assessing life or health insurance risk
How do warranties differ from representations? - ANSWER-a
warranty is guaranteed to be true, a representation is believed to
be true to the best of one's knowledge.
