PSI- LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM QUESTIONS &
ELABORATED COMPLETE ANSWERS
PASSED RATED 100% CORRECT
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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ Notice of claim.
When will a policy pay on a UCR basis? - Correct Answer ✔✔ When particular benefits
are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - Correct Answer ✔✔ Cash
dividend option.
What happens when the lifetime maximum benefit limit has been reached? - Correct
Answer ✔✔ 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)? - Correct Answer ✔✔ The producer.
What is the waiver of premium provision? - Correct Answer ✔✔ In a long term care
contract, the premium is waived after the insured has been confined for a specific period
of time.
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while? - Correct Answer ✔✔ Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - Correct Answer ✔✔ The
actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer
✔✔ 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? - Correct Answer
✔✔ Participating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - Correct
Answer ✔✔ The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - Correct
Answer ✔✔ 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? - Correct Answer ✔✔
Mode
What is the return of premium rider? - Correct Answer ✔✔ An increasing amount of
term insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - Correct Answer ✔✔ As soon as covered
medical expenses are incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not
covered during the policy's initial: - Correct Answer ✔✔ 2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
Correct Answer ✔✔ The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - Correct Answer
✔✔ The policy is originated primarily or solely for the purpose of resale.
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application? - Correct Answer ✔✔ The applicant and possibly the agent initial any
changes made.
PRACTICE EXAM QUESTIONS &
ELABORATED COMPLETE ANSWERS
PASSED RATED 100% CORRECT
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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ Notice of claim.
When will a policy pay on a UCR basis? - Correct Answer ✔✔ When particular benefits
are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - Correct Answer ✔✔ Cash
dividend option.
What happens when the lifetime maximum benefit limit has been reached? - Correct
Answer ✔✔ 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)? - Correct Answer ✔✔ The producer.
What is the waiver of premium provision? - Correct Answer ✔✔ In a long term care
contract, the premium is waived after the insured has been confined for a specific period
of time.
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while? - Correct Answer ✔✔ Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - Correct Answer ✔✔ The
actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer ✔✔ 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? - Correct Answer
✔✔ 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? - Correct Answer
✔✔ Participating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - Correct
Answer ✔✔ The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - Correct
Answer ✔✔ 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? - Correct Answer ✔✔
Mode
What is the return of premium rider? - Correct Answer ✔✔ An increasing amount of
term insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - Correct Answer ✔✔ As soon as covered
medical expenses are incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not
covered during the policy's initial: - Correct Answer ✔✔ 2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
Correct Answer ✔✔ The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - Correct Answer
✔✔ The policy is originated primarily or solely for the purpose of resale.
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application? - Correct Answer ✔✔ The applicant and possibly the agent initial any
changes made.
