PSI LIFE ACCIDENT AND HEALTH CORE EXAMS SET
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Which type of annuity covers two or more annuitants and provides monthly income
only until the first annuitant dies?
A. Joint life annuity
B. Life annuity
C. Survivorship life annuity
D. Temporary annuity - ✔✔Joint life annuity
✔✔Which of the following is a characteristic of Preferred Provider Organizations
(PPOs)?
A. prearranged costs for services rendered
B. providers receive a flat monthly amount for each user
C. ability to receive care at the same cost from any provider
D. emergency treatment is restricted to pre-selected hospitals - ✔✔prearranged costs
for services rendered
✔✔When a policy or certificate containing an accelerated benefit provision is applied for
or delivered, the producer is responsible for providing the applicant a summary of
coverage that includes all of the following EXCEPT
A. a detailed and comprehensive summary of the accelerated benefit
B. definitions of the conditions or occurrences triggering payment of the benefit
C. an explanation of any effects an accelerated benefit on the cash value, death benefit,
premium payments, and loans.
D. a statement that benefit payments may adversely affect eligibility for Medicaid - ✔✔a
detailed and comprehensive summary of the accelerated benefit
✔✔When does insurable interest come into play in a life insurance policy?
A. when the applicant for the policy is not the insured
B. when a charity is named beneficiary of the policy
C. when a beneficiary is irrevocable
D. when the free look period ends - ✔✔when the applicant for the policy is not the
insured
✔✔Which of the following was specifically designed to address STOLI and IOLI
practices?
A. NOIL Act
B. Fair Credit Reporting Act
C. State Insurance Statutes
D. HIPAA - ✔✔NOIL Act
✔✔The right to change the beneficiary or dispose of the policy or its benefits in any
manner one chooses is reserved to the policyowner UNLESS which of the following is
true?
, A. The policyowner has named an irrevocable beneficiary.
B. The policyowner has named a revocable beneficiary.
C. The policyowner deems the beneficiary unfit.
D. The insurer prohibits changes to beneficiaries. - ✔✔The policyowner has named an
irrevocable beneficiary.
✔✔Which of the following occurs immediately after the application is submitted and the
initial premium paid?
A. the underwriting process begins
B. the applicant's references are checked
C. the beneficiaries are selected
D. the insurance goes into effect - ✔✔the underwriting process begins
✔✔Why are insurance policies considered conditional contracts?
A. Certain conditions need to be met to make the contract legally enforceable.
B. The policy is conditional upon approval from the underwriting process.
C. There are conditions included that can make the policy invalid.
D. They can be deemed invalid at a future date if misrepresentations were made. -
✔✔Certain conditions need to be met to make the contract legally enforceable.
✔✔A basic vision care package includes all of the following EXCEPT
A. safety glasses.
B. the annual eye exam.
C. lenses and frames.
D. contact lenses. - ✔✔safety glasses.
✔✔How do warranties differ from representations?
A. a warranty is guaranteed to be true, a representation is believed to be true to the best
of one's knowledge.
B. a representation is guaranteed to be true, a warranty is believed to be true to the best
of one's knowledge.
C. a warranty is issued by the insurer, a representation is a statement provided by the
applicant.
D. an incorrect representation automatically voids a contract, whereas an incorrect
warranty must be proven. - ✔✔a warranty is guaranteed to be true, a representation is
believed to be true to the best of one's knowledge.
✔✔Which of the following policy types is considered double indemnity?
A. accidental death
B. key employee
C. term life
D. whole life - ✔✔accidental death
✔✔What does coinsurance mean?
A. The insurer and the insured share ALL expenses.
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Which type of annuity covers two or more annuitants and provides monthly income
only until the first annuitant dies?
A. Joint life annuity
B. Life annuity
C. Survivorship life annuity
D. Temporary annuity - ✔✔Joint life annuity
✔✔Which of the following is a characteristic of Preferred Provider Organizations
(PPOs)?
A. prearranged costs for services rendered
B. providers receive a flat monthly amount for each user
C. ability to receive care at the same cost from any provider
D. emergency treatment is restricted to pre-selected hospitals - ✔✔prearranged costs
for services rendered
✔✔When a policy or certificate containing an accelerated benefit provision is applied for
or delivered, the producer is responsible for providing the applicant a summary of
coverage that includes all of the following EXCEPT
A. a detailed and comprehensive summary of the accelerated benefit
B. definitions of the conditions or occurrences triggering payment of the benefit
C. an explanation of any effects an accelerated benefit on the cash value, death benefit,
premium payments, and loans.
D. a statement that benefit payments may adversely affect eligibility for Medicaid - ✔✔a
detailed and comprehensive summary of the accelerated benefit
✔✔When does insurable interest come into play in a life insurance policy?
A. when the applicant for the policy is not the insured
B. when a charity is named beneficiary of the policy
C. when a beneficiary is irrevocable
D. when the free look period ends - ✔✔when the applicant for the policy is not the
insured
✔✔Which of the following was specifically designed to address STOLI and IOLI
practices?
A. NOIL Act
B. Fair Credit Reporting Act
C. State Insurance Statutes
D. HIPAA - ✔✔NOIL Act
✔✔The right to change the beneficiary or dispose of the policy or its benefits in any
manner one chooses is reserved to the policyowner UNLESS which of the following is
true?
, A. The policyowner has named an irrevocable beneficiary.
B. The policyowner has named a revocable beneficiary.
C. The policyowner deems the beneficiary unfit.
D. The insurer prohibits changes to beneficiaries. - ✔✔The policyowner has named an
irrevocable beneficiary.
✔✔Which of the following occurs immediately after the application is submitted and the
initial premium paid?
A. the underwriting process begins
B. the applicant's references are checked
C. the beneficiaries are selected
D. the insurance goes into effect - ✔✔the underwriting process begins
✔✔Why are insurance policies considered conditional contracts?
A. Certain conditions need to be met to make the contract legally enforceable.
B. The policy is conditional upon approval from the underwriting process.
C. There are conditions included that can make the policy invalid.
D. They can be deemed invalid at a future date if misrepresentations were made. -
✔✔Certain conditions need to be met to make the contract legally enforceable.
✔✔A basic vision care package includes all of the following EXCEPT
A. safety glasses.
B. the annual eye exam.
C. lenses and frames.
D. contact lenses. - ✔✔safety glasses.
✔✔How do warranties differ from representations?
A. a warranty is guaranteed to be true, a representation is believed to be true to the best
of one's knowledge.
B. a representation is guaranteed to be true, a warranty is believed to be true to the best
of one's knowledge.
C. a warranty is issued by the insurer, a representation is a statement provided by the
applicant.
D. an incorrect representation automatically voids a contract, whereas an incorrect
warranty must be proven. - ✔✔a warranty is guaranteed to be true, a representation is
believed to be true to the best of one's knowledge.
✔✔Which of the following policy types is considered double indemnity?
A. accidental death
B. key employee
C. term life
D. whole life - ✔✔accidental death
✔✔What does coinsurance mean?
A. The insurer and the insured share ALL expenses.
