PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM | COMPLETE QUESTIONS
& ANSWERS 2026
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Dividends that are received by a life insurance policy The amount received that is over and above the amount paid into the policy via
holder can be taxed in what situation(s): premiums is considered to be gain and is therefore taxable. There are no
I - When the dividend amount received exceeds the dividends paid on term life insurance policies.
amount that the policy holder paid in premiums
Under the misstatement of age or gender provision, Benefits are adjusted to an amount that the premium would have purchased at
what happens if it is determined at death that the the correct age or gender.
insured's age or gender was misstated on a life
insurance policy application?
Which of the following must be given to the insurer Notice of claim.
within 20 days after occurrence or commencement of
any loss covered by the policy, or as thereafter as is
reasonably possible?
,When will a policy pay on a UCR basis? When particular benefits are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT Cash dividend option.
What happens when the lifetime maximum benefit limit The insured will pay all of the remaining medial costs for as long as the policy is
has been reached? in force.
Whose responsibility is it to make sure that the The producer.
company is notified of a death claim at the earliest
possible opportunity (in most cases)?
What is the waiver of premium provision? 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 Committing a misdemeanor
found in disability income policies EXCEPT for that
incurred while?
Which is a disadvantage to a flexible premium annuity? The actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? The insurer and the insured share expenses over the deductible.
Under normal conditions which of the following is TRUE The insured has 90 days from the date of loss to provide proof of loss.
for proof of loss when a single loss is claimed?
, Which one of the following represents an advantage of The loan is not taxed while a withdrawal is taxed for amounts above the
obtaining a policy loan versus a withdrawal? contract cost basis.
All of the following statements define preexisting Any chronic health condition that presents symptoms and which was unknown
conditions EXCEPT? at the time of application.
Which is the difference between participating and non- Participating policies pay dividends while non-participating policies do not.
participating?
How does the per captia rule apply to proceeds from a The proceeds are divided equally among living primary beneficiaries.
life insurance policy?
How does a noncancelable policy differ from a With the noncancelable policy the insurer may increase premiums only based
guaranteed renewable policy? on the terms of the policy.
PRACTICE EXAM | COMPLETE QUESTIONS
& ANSWERS 2026
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Dividends that are received by a life insurance policy The amount received that is over and above the amount paid into the policy via
holder can be taxed in what situation(s): premiums is considered to be gain and is therefore taxable. There are no
I - When the dividend amount received exceeds the dividends paid on term life insurance policies.
amount that the policy holder paid in premiums
Under the misstatement of age or gender provision, Benefits are adjusted to an amount that the premium would have purchased at
what happens if it is determined at death that the the correct age or gender.
insured's age or gender was misstated on a life
insurance policy application?
Which of the following must be given to the insurer Notice of claim.
within 20 days after occurrence or commencement of
any loss covered by the policy, or as thereafter as is
reasonably possible?
,When will a policy pay on a UCR basis? When particular benefits are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT Cash dividend option.
What happens when the lifetime maximum benefit limit The insured will pay all of the remaining medial costs for as long as the policy is
has been reached? in force.
Whose responsibility is it to make sure that the The producer.
company is notified of a death claim at the earliest
possible opportunity (in most cases)?
What is the waiver of premium provision? 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 Committing a misdemeanor
found in disability income policies EXCEPT for that
incurred while?
Which is a disadvantage to a flexible premium annuity? The actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? The insurer and the insured share expenses over the deductible.
Under normal conditions which of the following is TRUE The insured has 90 days from the date of loss to provide proof of loss.
for proof of loss when a single loss is claimed?
, Which one of the following represents an advantage of The loan is not taxed while a withdrawal is taxed for amounts above the
obtaining a policy loan versus a withdrawal? contract cost basis.
All of the following statements define preexisting Any chronic health condition that presents symptoms and which was unknown
conditions EXCEPT? at the time of application.
Which is the difference between participating and non- Participating policies pay dividends while non-participating policies do not.
participating?
How does the per captia rule apply to proceeds from a The proceeds are divided equally among living primary beneficiaries.
life insurance policy?
How does a noncancelable policy differ from a With the noncancelable policy the insurer may increase premiums only based
guaranteed renewable policy? on the terms of the policy.
