PSI LIFE ACCIDENT AND HEALTH 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Which of the following occurs immediately after the application is submitted and the
initial premium paid? - ✔✔The underwriting process begins.
✔✔A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - ✔✔Medical Underwriting exam.
✔✔Why are insurance policies considered conditional contracts? - ✔✔Certain
conditions need to be met to make the contract legally enforceable.
✔✔When does insurable interest come into play in a life insurance policy? - ✔✔When
the applicant for the policy is not the insured.
✔✔All of the following are TRUE regarding incomplete applications EXCEPT? - ✔✔The
incomplete application can be accepted with the missing information added later.
✔✔What is a MIB report? - ✔✔Medical information on an applicant for assessing life or
health insurance risk.
✔✔Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ✔✔Fair Credit Reporting Act
✔✔All of the following are classifications of risk EXCEPT? - ✔✔Non-nicotine
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔Binding receipt
✔✔If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT? - ✔✔The treatment procedures that are
covered by the policy.
✔✔How do warranties differ from representations? - ✔✔A warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
✔✔In noncontributory plans, which percentage of eligible members must participate? -
✔✔100%
✔✔Managed care plans increase efficiency by all of the following means EXCEPT? -
✔✔Transferring the management of costs to the insureds.
, ✔✔All of the following are tax qualified retirement plans EXCEPT? - ✔✔Section 529
plan.
✔✔Which of the following is characteristic of a non-qualified plan? - ✔✔Plan does not
meet federal guidelines for tax benefits.
✔✔Under which situation must insurable interest exist between the applicant and
insured at the time of application? - ✔✔When a third-party application names
themselves beneficiary.
✔✔The group conversion option is allowed for all of the following EXCEPT? - ✔✔During
the annual benefits enrollment period.
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pay the remaining up to coverage amount.
✔✔Why is rehabilitation considered worthy of federal help under workers'
compensation? - ✔✔It reduces insurance losses and helps regain the worker's dignity.
✔✔When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - ✔✔When the taxpayer's medical expenses
exceed 7.5% of adjusted gross income during a taxable year.
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔Non-occupational injuries.
✔✔What type of insurance should a company purchase if it wants to insure the life of its
CEO? - ✔✔Key person insurance
✔✔For an individual long-term care policy there is an annual dollar limit for tax
deduction that is based on which of the following? - ✔✔Age
✔✔When should a buy-sell agreement include a provision for the buy-out of an owner's
business interest in the event of a disability? - ✔✔When there is a buy-sell agreement
funded with life insurance to buyout the interest of a deceased owner or partner.
✔✔Which insurance plans are commonly offered through the work-site (employer
sponsored) EXCEPT? - ✔✔Medicare
✔✔State generally define a true "Group" for insurance as requiring a minimum of how
many participants? - ✔✔10
QUESTIONS AND SOLUTIONS RATED A+
✔✔Which of the following occurs immediately after the application is submitted and the
initial premium paid? - ✔✔The underwriting process begins.
✔✔A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - ✔✔Medical Underwriting exam.
✔✔Why are insurance policies considered conditional contracts? - ✔✔Certain
conditions need to be met to make the contract legally enforceable.
✔✔When does insurable interest come into play in a life insurance policy? - ✔✔When
the applicant for the policy is not the insured.
✔✔All of the following are TRUE regarding incomplete applications EXCEPT? - ✔✔The
incomplete application can be accepted with the missing information added later.
✔✔What is a MIB report? - ✔✔Medical information on an applicant for assessing life or
health insurance risk.
✔✔Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ✔✔Fair Credit Reporting Act
✔✔All of the following are classifications of risk EXCEPT? - ✔✔Non-nicotine
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔Binding receipt
✔✔If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT? - ✔✔The treatment procedures that are
covered by the policy.
✔✔How do warranties differ from representations? - ✔✔A warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
✔✔In noncontributory plans, which percentage of eligible members must participate? -
✔✔100%
✔✔Managed care plans increase efficiency by all of the following means EXCEPT? -
✔✔Transferring the management of costs to the insureds.
, ✔✔All of the following are tax qualified retirement plans EXCEPT? - ✔✔Section 529
plan.
✔✔Which of the following is characteristic of a non-qualified plan? - ✔✔Plan does not
meet federal guidelines for tax benefits.
✔✔Under which situation must insurable interest exist between the applicant and
insured at the time of application? - ✔✔When a third-party application names
themselves beneficiary.
✔✔The group conversion option is allowed for all of the following EXCEPT? - ✔✔During
the annual benefits enrollment period.
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pay the remaining up to coverage amount.
✔✔Why is rehabilitation considered worthy of federal help under workers'
compensation? - ✔✔It reduces insurance losses and helps regain the worker's dignity.
✔✔When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - ✔✔When the taxpayer's medical expenses
exceed 7.5% of adjusted gross income during a taxable year.
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔Non-occupational injuries.
✔✔What type of insurance should a company purchase if it wants to insure the life of its
CEO? - ✔✔Key person insurance
✔✔For an individual long-term care policy there is an annual dollar limit for tax
deduction that is based on which of the following? - ✔✔Age
✔✔When should a buy-sell agreement include a provision for the buy-out of an owner's
business interest in the event of a disability? - ✔✔When there is a buy-sell agreement
funded with life insurance to buyout the interest of a deceased owner or partner.
✔✔Which insurance plans are commonly offered through the work-site (employer
sponsored) EXCEPT? - ✔✔Medicare
✔✔State generally define a true "Group" for insurance as requiring a minimum of how
many participants? - ✔✔10
