PSI; LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM 2025.
100% COMPLETE TEST (QUESTIONS AND CORRECT
ANSWERS).
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
ANSWER->>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 ANSWER->>Notice of claim.
When will a policy pay on a UCR basis? -CORRECT ANSWER->>When particular benefits are
not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT -CORRECT ANSWER->>Cash dividend
option.
What happens when the lifetime maximum benefit limit has been reached? -CORRECT
ANSWER->>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 ANSWER->>The producer.
What is the waiver of premium provision? -CORRECT ANSWER->>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 ANSWER->>Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? -CORRECT ANSWER->>The actual
amount of the annuity benefit cannot be determined in advance.
, What does coninsurance mean? -CORRECT ANSWER->>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 ANSWER->>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 ANSWER->>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 ANSWER-
>>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 ANSWER-
>>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
ANSWER->>The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? -CORRECT
ANSWER->>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 ANSWER->>Mode
What is the return of premium rider? -CORRECT ANSWER->>An increasing amount of term
insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? -CORRECT ANSWER->>As soon as covered medical
expenses are incurred, the policy begins to pay.
100% COMPLETE TEST (QUESTIONS AND CORRECT
ANSWERS).
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
ANSWER->>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 ANSWER->>Notice of claim.
When will a policy pay on a UCR basis? -CORRECT ANSWER->>When particular benefits are
not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT -CORRECT ANSWER->>Cash dividend
option.
What happens when the lifetime maximum benefit limit has been reached? -CORRECT
ANSWER->>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 ANSWER->>The producer.
What is the waiver of premium provision? -CORRECT ANSWER->>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 ANSWER->>Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? -CORRECT ANSWER->>The actual
amount of the annuity benefit cannot be determined in advance.
, What does coninsurance mean? -CORRECT ANSWER->>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 ANSWER->>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 ANSWER->>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 ANSWER-
>>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 ANSWER-
>>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
ANSWER->>The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? -CORRECT
ANSWER->>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 ANSWER->>Mode
What is the return of premium rider? -CORRECT ANSWER->>An increasing amount of term
insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? -CORRECT ANSWER->>As soon as covered medical
expenses are incurred, the policy begins to pay.
