PSI LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
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? -
ANS 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? -
ANS Notice of claim.
When will a policy pay on a UCR basis? - ANS When particular benefits are not listed on a
payment schedule.
All of the following are non-forfeiture options EXCEPT - ANS Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANS 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)? - ANS The producer.
What is the waiver of premium provision? - ANS In a long term care contract, the premium is
waived after the insured has been confined for a specific period of time.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 8
, All of the following are common exclusions from loss found in disability income policies EXCEPT
for that incurred while? - ANS Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANS The actual amount of the
annuity benefit cannot be determined in advance.
What does coninsurance mean? - ANS 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? - ANS 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? - ANS 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? - ANS 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? - ANS Participating
policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - ANS The
proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - ANS 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? - ANS Mode
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 8
PRACTICE EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
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? -
ANS 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? -
ANS Notice of claim.
When will a policy pay on a UCR basis? - ANS When particular benefits are not listed on a
payment schedule.
All of the following are non-forfeiture options EXCEPT - ANS Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANS 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)? - ANS The producer.
What is the waiver of premium provision? - ANS In a long term care contract, the premium is
waived after the insured has been confined for a specific period of time.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 8
, All of the following are common exclusions from loss found in disability income policies EXCEPT
for that incurred while? - ANS Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANS The actual amount of the
annuity benefit cannot be determined in advance.
What does coninsurance mean? - ANS 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? - ANS 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? - ANS 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? - ANS 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? - ANS Participating
policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - ANS The
proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - ANS 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? - ANS Mode
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 8
