PSI Practice Exam / Revised Questions and Answers / 2024

Which of the following occurs immediately after the application is submitted and the initial premium paid? 1. the underwriting process begins 2. the applicant's references are checked 3. the beneficiaries are selected 4. the insurance goes into effect. - 1. the underwriting process begins Obtaining consumer information reports under false pretenses is prosecutable by which of the following? 1. USA Patriot Act 2. Fair Credit Reporting Act 3. State laws where the applicant resides 4. Securities and Exchange Commission - 2. Fair Credit Reporting Act Which is the major reason why long term care insurance is becoming increasingly important? 1. It is easy to make a profit from investing in long term care 2. As life expectancy increases, the chances of needing long term care also increase 3. Nursing homes only accept Medicare as a secondary insurance source. 4. Many younger people are developing life-threatening conditions and require hospice care. - 2. As life expectancy increases, the chances of needing long term care also increase Under which situation must insurable interest exist between the applicant and insured at the time of application? 1. When a third-party applicant names themselves beneficiary. 2. When the applicant and the insured are the same person.3. When the beneficiary is a member of the applicant's immediate family 4. When a third-party applicant names the insured's company as beneficiary. - 1. When a thirdparty applicant names themselves beneficiary.