PSI LIFE ACCIDENT AND HEALTH LATEST EXAM
2026/2027 ACTUAL QUESTIONS AND SOLUTIONS
RATED A+
✔✔Which types of life policy can be continued year after year without a required
medical examination but rates are dependent on the insured's current age? -
✔✔Renewable term
✔✔Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness? - ✔✔Disability income
insurance
✔✔Which of the following is TRUE of an equity-indexed annuity? - ✔✔It has a
guaranteed minimum interest rate.
✔✔Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - ✔✔Major medical insurance.
✔✔Which of the following is the most common method to supplement Medicare
coverage? - ✔✔Coverage offered by private insurers.
✔✔Which of the following is defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - ✔✔Stop Loss Limit
✔✔A basic vision care package includes all of the following EXCEPT? - ✔✔Safety
glasses
✔✔In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? - ✔✔Flexible
Spending Account (FSA)
✔✔Current assumption whole life policies are sensitive to which of the following? -
✔✔Interest rates
✔✔A group conversion option may be used in all the following instances EXCEPT? -
✔✔A life-changing event, such as marriage, divorce, or childbirth.
✔✔Why is relying solely on employer group life insurance generally considered
inadequate for most individual's needs? - ✔✔It is financially insufficient to cover end of
life expenses.
, ✔✔In a home healthcare benefit, all of the following are eligible expenses EXCEPT? -
✔✔Blood Transfusions
✔✔Which of the following amends the Social Security Act to make Medicare secondary
to group health plans? - ✔✔TEFRA
✔✔All of the following are requirements to qualify for Social Security disability benefits
EXCEPT when - ✔✔Unable to work in occupation on which the worker was trained or
educated.
✔✔How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - ✔✔2 years
✔✔Which of the following is TRUE for a flexible premium annuity? - ✔✔The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount.
✔✔All of the following are characteristics of COBRA EXCEPT? - ✔✔Change in medical
privacy procedures.
✔✔Which is the primary purpose of Health Reimbursement Accounts (HFAs)? - ✔✔To
assist covered employees with the payment of medical expenses on a high deductible
plan funded through pre-tax.
✔✔Which type of annuity covers two or more annuitants and provides monthly income
only until the first annuitant dies? - ✔✔Joint Life Annuity
✔✔All of the following are characteristics of variable whole life EXCEPT? - ✔✔There is
no guaranteed minimum death benefit.
✔✔Which problem was Universal Life insurance designed to address? - ✔✔Low interest
rates during periods of high inflation.
✔✔Which of the following is covered by a dread disease policy? - ✔✔Illnesses that do
not occur frequently but incur significant costs when they do occur.
✔✔ 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? - ✔✔Benefits are adjusted to an amount that the premium would
have purchased at the correct age or gender.
2026/2027 ACTUAL QUESTIONS AND SOLUTIONS
RATED A+
✔✔Which types of life policy can be continued year after year without a required
medical examination but rates are dependent on the insured's current age? -
✔✔Renewable term
✔✔Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness? - ✔✔Disability income
insurance
✔✔Which of the following is TRUE of an equity-indexed annuity? - ✔✔It has a
guaranteed minimum interest rate.
✔✔Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - ✔✔Major medical insurance.
✔✔Which of the following is the most common method to supplement Medicare
coverage? - ✔✔Coverage offered by private insurers.
✔✔Which of the following is defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - ✔✔Stop Loss Limit
✔✔A basic vision care package includes all of the following EXCEPT? - ✔✔Safety
glasses
✔✔In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? - ✔✔Flexible
Spending Account (FSA)
✔✔Current assumption whole life policies are sensitive to which of the following? -
✔✔Interest rates
✔✔A group conversion option may be used in all the following instances EXCEPT? -
✔✔A life-changing event, such as marriage, divorce, or childbirth.
✔✔Why is relying solely on employer group life insurance generally considered
inadequate for most individual's needs? - ✔✔It is financially insufficient to cover end of
life expenses.
, ✔✔In a home healthcare benefit, all of the following are eligible expenses EXCEPT? -
✔✔Blood Transfusions
✔✔Which of the following amends the Social Security Act to make Medicare secondary
to group health plans? - ✔✔TEFRA
✔✔All of the following are requirements to qualify for Social Security disability benefits
EXCEPT when - ✔✔Unable to work in occupation on which the worker was trained or
educated.
✔✔How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - ✔✔2 years
✔✔Which of the following is TRUE for a flexible premium annuity? - ✔✔The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount.
✔✔All of the following are characteristics of COBRA EXCEPT? - ✔✔Change in medical
privacy procedures.
✔✔Which is the primary purpose of Health Reimbursement Accounts (HFAs)? - ✔✔To
assist covered employees with the payment of medical expenses on a high deductible
plan funded through pre-tax.
✔✔Which type of annuity covers two or more annuitants and provides monthly income
only until the first annuitant dies? - ✔✔Joint Life Annuity
✔✔All of the following are characteristics of variable whole life EXCEPT? - ✔✔There is
no guaranteed minimum death benefit.
✔✔Which problem was Universal Life insurance designed to address? - ✔✔Low interest
rates during periods of high inflation.
✔✔Which of the following is covered by a dread disease policy? - ✔✔Illnesses that do
not occur frequently but incur significant costs when they do occur.
✔✔ 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? - ✔✔Benefits are adjusted to an amount that the premium would
have purchased at the correct age or gender.
