1
PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS 2026
When will a policy pay on a UCR basis? - correct-answer - When particular
benefits are not listed on a payment schedule.
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
, 2
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.
PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS 2026
When will a policy pay on a UCR basis? - correct-answer - When particular
benefits are not listed on a payment schedule.
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
, 2
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.
