PSI PRACTICE EXAM QUESTIONS AND
ANSWERS
Which of the following term insurance types provides temporary protection that can be
changed to some type of permanent protection without evidence of insurability? -
Answer-convertible
Which type of annuity attempts to offset inflation by providing a benefit linked to an
underlying investment account? - Answer-variable
In a level term life policy, which ALWAYS remains constant? - Answer-death benefit
Which of the following is TRUE of the limited pay whole life policy? - Answer-Coverage
continues after the policy is paid-up.
Which of the following is common in an increasing term life policy? - Answer-It begins
with little or no insurance protection.
Which of the following is TRUE for a flexible premium annuity? - Answer-The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount.
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? - Answer-Joint and survivorship option
Which whole life policy premium type is the most common? - Answer-continuous
premium
Current assumption whole life policies are sensitive to which of the following? - Answer-
interest rates
Which of the following is TRUE of an equity-indexed annuity? - Answer-It has a
guaranteed minimum interest rate.
Which policy type is backed by equity investments and allows the policyholder to adjust
the death benefit? - Answer-variable universal life
Which of the following lists the three common types of permanent individual life
insurance? - Answer-Variable Life, Whole Life, Universal Life
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? - Answer-common disaster clause
ANSWERS
Which of the following term insurance types provides temporary protection that can be
changed to some type of permanent protection without evidence of insurability? -
Answer-convertible
Which type of annuity attempts to offset inflation by providing a benefit linked to an
underlying investment account? - Answer-variable
In a level term life policy, which ALWAYS remains constant? - Answer-death benefit
Which of the following is TRUE of the limited pay whole life policy? - Answer-Coverage
continues after the policy is paid-up.
Which of the following is common in an increasing term life policy? - Answer-It begins
with little or no insurance protection.
Which of the following is TRUE for a flexible premium annuity? - Answer-The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount.
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? - Answer-Joint and survivorship option
Which whole life policy premium type is the most common? - Answer-continuous
premium
Current assumption whole life policies are sensitive to which of the following? - Answer-
interest rates
Which of the following is TRUE of an equity-indexed annuity? - Answer-It has a
guaranteed minimum interest rate.
Which policy type is backed by equity investments and allows the policyholder to adjust
the death benefit? - Answer-variable universal life
Which of the following lists the three common types of permanent individual life
insurance? - Answer-Variable Life, Whole Life, Universal Life
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? - Answer-common disaster clause
