PSI LIFE INSURANCE ACTUAL EXAM |COMPLETE QUESTIONS
WITH EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
What is it called when a life insurance policy pays a multiple of the coverage amount when
certain types of accidents occur? - (answer)multiple indemnity
Upon the issuance of a conditional receipt for a renewal when the premium is paid AFTER the
time granted by the insurer, what is the maximum amount of time for reinstatement of the
policy? - (answer)30 days
Which of the following statements regarding a pure life annuity payout option is correct? -
(answer)This option provides the highest monthly income.
Which of the following does not apply to the time limit on certain defenses provision in health
insurance policies? - (answer)fraudulent misstatements
If an individual is insured by both their own health insurance policy and their spouse's policy,
which policy pays first in the event of an illness? - (answer)The individual's policy pays first, the
spouse's policy pays the remaining up to coverage amount.
,When can the premiums of an individually owned health insurance policy be deducted from the
individual's income tax? - (answer)when the taxpayer's unreimbursed medical expenses exceed
7.5% of adjusted gross income during a taxable year
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered
during the policy's initial - (answer)2 year period.
Which of the following is a characteristic of Health Maintenance Organizations (HMOs)? -
(answer)preventive care
The life insurance policy will not be truly effective until all of the following occur EXCEPT -
(answer)the producer has explained the policy to the client.
Under which situation must insurable interest exist between the applicant and insured at the time
of application? - (answer)when a third-party applicant names themselves beneficiary
Which of the following is a distinguishing feature of a variable life insurance policy? -
(answer)The cash value earnings are based on the performance of the separate account.
The person who receives the benefit of an annuity is known as the - (answer)annuitant.
,Which of the following is an example of a premium payment mode? - (answer)annual premium
payment
How do most disability policies handle the case of a recurrent disability occurring at least 90
days after the first claim? - (answer)it must be handled as a new claim for a new period of
disability, requiring a new elimination period.
Which of the following is true for most comprehensive dental policies? - (answer)Routine care is
provided without coinsurance or deductibles.
Under a Medicare Supplement Policy, preexisting conditions CANNOT be excluded after how
many months from the effective date of the policy? - (answer)6 months
What does an application for insurance contractually represent for the insured? - (answer)an offer
Which of the following is exempted from the incontestability provision in insurance policies? -
(answer)fraudulent misstatements
, Which of the following may be thought of as a time deductible rather than a dollar deductible in
a disability income policy because benefits are not payable during that time? -
(answer)elimination period
How long after being entitled to Social Security disability benefits will an individual be eligible
to receive Medicare benefits? - (answer)2 years
If a policy is determined to be a Modified Endowment Contract (MEC), funds received under the
policy will be - (answer)considered taxable income first.
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying
investment account? - (answer)variable
What is a MIB report? - (answer)medical information on an applicant for assessing life or health
insurance risk
Group Life Policies typically include which of the following provisions? - (answer)conversion
privilege
WITH EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
What is it called when a life insurance policy pays a multiple of the coverage amount when
certain types of accidents occur? - (answer)multiple indemnity
Upon the issuance of a conditional receipt for a renewal when the premium is paid AFTER the
time granted by the insurer, what is the maximum amount of time for reinstatement of the
policy? - (answer)30 days
Which of the following statements regarding a pure life annuity payout option is correct? -
(answer)This option provides the highest monthly income.
Which of the following does not apply to the time limit on certain defenses provision in health
insurance policies? - (answer)fraudulent misstatements
If an individual is insured by both their own health insurance policy and their spouse's policy,
which policy pays first in the event of an illness? - (answer)The individual's policy pays first, the
spouse's policy pays the remaining up to coverage amount.
,When can the premiums of an individually owned health insurance policy be deducted from the
individual's income tax? - (answer)when the taxpayer's unreimbursed medical expenses exceed
7.5% of adjusted gross income during a taxable year
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered
during the policy's initial - (answer)2 year period.
Which of the following is a characteristic of Health Maintenance Organizations (HMOs)? -
(answer)preventive care
The life insurance policy will not be truly effective until all of the following occur EXCEPT -
(answer)the producer has explained the policy to the client.
Under which situation must insurable interest exist between the applicant and insured at the time
of application? - (answer)when a third-party applicant names themselves beneficiary
Which of the following is a distinguishing feature of a variable life insurance policy? -
(answer)The cash value earnings are based on the performance of the separate account.
The person who receives the benefit of an annuity is known as the - (answer)annuitant.
,Which of the following is an example of a premium payment mode? - (answer)annual premium
payment
How do most disability policies handle the case of a recurrent disability occurring at least 90
days after the first claim? - (answer)it must be handled as a new claim for a new period of
disability, requiring a new elimination period.
Which of the following is true for most comprehensive dental policies? - (answer)Routine care is
provided without coinsurance or deductibles.
Under a Medicare Supplement Policy, preexisting conditions CANNOT be excluded after how
many months from the effective date of the policy? - (answer)6 months
What does an application for insurance contractually represent for the insured? - (answer)an offer
Which of the following is exempted from the incontestability provision in insurance policies? -
(answer)fraudulent misstatements
, Which of the following may be thought of as a time deductible rather than a dollar deductible in
a disability income policy because benefits are not payable during that time? -
(answer)elimination period
How long after being entitled to Social Security disability benefits will an individual be eligible
to receive Medicare benefits? - (answer)2 years
If a policy is determined to be a Modified Endowment Contract (MEC), funds received under the
policy will be - (answer)considered taxable income first.
Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying
investment account? - (answer)variable
What is a MIB report? - (answer)medical information on an applicant for assessing life or health
insurance risk
Group Life Policies typically include which of the following provisions? - (answer)conversion
privilege
