PSI Life Insurance Test questions and answers
2026\2027 A+ Grade
Which policy type is backed by equity investments and allows the policyholder to adjust the death
benefit?
- correct answer variable universal life
Which annuity settlement option provides a stated monthly amount to the annuitant and upon the
annuitant?s death the same or a lesser amount paid for the lifetime of the survivor?
- correct answer Joint and survivorship option
In which of the following must a beneficiary change request be filed in writing to the insurer and is made
effective by the insurance company recording the change in its records?
- correct answer recording method
What is the order in which beneficiaries receive proceeds from a life insurance policy?
- correct answer succession of beneficiaries
Which part of an insurance contract contains the promise to pay losses covered by the policy in
exchange for the insured's premium and compliance with policy terms?
- correct answer insuring clause
Which of the following is exempted from the incontestability provision in insurance policies?
- correct answer fraudulent misstatements
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new
one?
- correct answer insured original age is used
All of the following are ownership rights EXCEPT
- correct answer switching the policy from one insured to another
, Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to
a life insurance policy?
- correct answer establishing a trust to administer proceeds
In which of the following must a beneficiary change request be filed in writing to the insurer and is made
effective by the insurance company recording the change in its records?
- correct answer recording method
Which part of an insurance contract contains the promise to pay losses covered by the policy in
exchange for the insured's premium and compliance with policy terms?
- correct answer insuring clause
Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to
a life insurance policy?
- correct answer establishing a trust to administer proceeds
Which of the following occurs immediately after the application is submitted and the initial premium
paid?
- correct answer the underwriting process begins
All of the following are tax qualified retirement plans EXCEPT
- correct answer Section 529 plan
For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on
which of the following?
- correct answer age
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of
the following EXCEPT
- correct answer the treatment procedures that are covered by the policy.
All of the following are common exclusions from loss found in disability income policies EXCEPT for that
incurred while
- correct answer committing a misdemeanor
2026\2027 A+ Grade
Which policy type is backed by equity investments and allows the policyholder to adjust the death
benefit?
- correct answer variable universal life
Which annuity settlement option provides a stated monthly amount to the annuitant and upon the
annuitant?s death the same or a lesser amount paid for the lifetime of the survivor?
- correct answer Joint and survivorship option
In which of the following must a beneficiary change request be filed in writing to the insurer and is made
effective by the insurance company recording the change in its records?
- correct answer recording method
What is the order in which beneficiaries receive proceeds from a life insurance policy?
- correct answer succession of beneficiaries
Which part of an insurance contract contains the promise to pay losses covered by the policy in
exchange for the insured's premium and compliance with policy terms?
- correct answer insuring clause
Which of the following is exempted from the incontestability provision in insurance policies?
- correct answer fraudulent misstatements
What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new
one?
- correct answer insured original age is used
All of the following are ownership rights EXCEPT
- correct answer switching the policy from one insured to another
, Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to
a life insurance policy?
- correct answer establishing a trust to administer proceeds
In which of the following must a beneficiary change request be filed in writing to the insurer and is made
effective by the insurance company recording the change in its records?
- correct answer recording method
Which part of an insurance contract contains the promise to pay losses covered by the policy in
exchange for the insured's premium and compliance with policy terms?
- correct answer insuring clause
Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to
a life insurance policy?
- correct answer establishing a trust to administer proceeds
Which of the following occurs immediately after the application is submitted and the initial premium
paid?
- correct answer the underwriting process begins
All of the following are tax qualified retirement plans EXCEPT
- correct answer Section 529 plan
For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on
which of the following?
- correct answer age
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of
the following EXCEPT
- correct answer the treatment procedures that are covered by the policy.
All of the following are common exclusions from loss found in disability income policies EXCEPT for that
incurred while
- correct answer committing a misdemeanor
