2024 LIFE, HEALTH AND
ACCIDENT QUESTIONS FOR
PSI EXAMS WITH ANSWERS
The probability of loss is unknown - CORRECT ANSWER>>>>Loss retention is an
effective risk management technique when all of the following conditions exist EXCEPT
Never - CORRECT ANSWER>>>>When are parties to a contract required to
communicate information solely based on personal judgement for a matter in question?
Provides a payment only when the insured is totally disabled, but not receiving any
social insurance benefits plans - CORRECT ANSWER>>>>A disability income policy
social insurance supplement (SIS) benefit rider:
Reserves the right to change the premiums, but may not change any of its terms -
CORRECT ANSWER>>>>A disability policy, described as " guaranteed renewable" is
one where the insurance company.
Purchase additional insurance regardless of insurability - CORRECT
ANSWER>>>>The guaranteed insurability option provides the ability to:
Renewable term - CORRECT ANSWER>>>>Which type of insurance guarantees the
right to renew the policy each year, regardless of health but at an increased premium ?
Employers would be held responsible for the cost of their employee's work injuries
regardless of fault - CORRECT ANSWER>>>>The passage of worker's compensation
legislation meant.
insolvent - CORRECT ANSWER>>>>If an insurer is not able to meet financial
obligations when due, the insurer would be considered.
The policy face amount is paid out only upon the death of the first insured to die -
CORRECT ANSWER>>>>All of the following statements about survivorship life
insurance are true EXCEPT
waiver-of-premium provision - CORRECT ANSWER>>>>The insured is totally and
permanently disabled. The insured's policy continues in force with out the payment of a
premium because the policy contains a.
,The insurer will make the payments until the insured juvenile reaches a specified age -
CORRECT ANSWER>>>>The payor rider on a juvenile life policy provides that if the
payor dies or becomes disabled before the insured juvenile reaches the age specified
on the policy.
The contingent beneficiary shared death proceeds equally with the primary beneficiary
- CORRECT ANSWER>>>>All of the following statement about contingent
beneficiaries are true, EXCEPT
respite care - CORRECT ANSWER>>>>A form of rest or relief offered to family
members who are caring for a person who requieres continual care is.
RW and Associates underwriting for BLG Insurance Corporation - CORRECT
ANSWER>>>>RW and Associates is an agency which represents BIG insurance
corporation. RW and Associates may leave the name BIG Insurance Corporation in its
advertisements by clearly stating the relationship between the two businesses in any of
the following ways, EXCEPT.
An outside organization that process claims for an employer's self- funded plans -
CORRECT ANSWER>>>>An example of a third party administrator is
Term Insurance - CORRECT ANSWER>>>>An individual with a low income and high
insurance needs should buy.
Who joined the group after the effective date - CORRECT ANSWER>>>>The
probability period in a group health policy is intended for people
Accelerated Death Benefit - CORRECT ANSWER>>>>Which provision will pay a
portion of the death benefit prior to the insured's death due to a serious illness?
Suspend or revoke the license of the agent - CORRECT ANSWER>>>>What does the
insurance Commissioner have the right to do if an agent lacks authority from an insurer
named on a binder for coverage?
The total disability definition used by the Social Security Administration - CORRECT
ANSWER>>>>Which definition of disability is the most difficult for an injured worker to
satisfy?
Out living their financial resources - CORRECT ANSWER>>>>People commonly
purchase an annuity to protect against the risk of .
In one lump sum - CORRECT ANSWER>>>>In the event of an accidental death, the
,principal sum in a disability policy will be paid.
Provides assistance for a free based upon ability to pay - CORRECT
ANSWER>>>>Which of the following statements about the HICAP program is false?
HICAP
The greater the number insured, the more accurately the insurer can predict losses and
set appropriate premiums - CORRECT ANSWER>>>>Why is having a larger number of
similar exposures units important to insurers ?
Age 100 - CORRECT ANSWER>>>>The insured aged 65, owns $100,000 non-
participating whole life policy. The policy is paid- up as of today. When would the cash
value reach $100,000?
activities of daily living - CORRECT ANSWER>>>>A measure for rating an individual's
need for LTC benefits is called
With a specified number of days after injury - CORRECT ANSWER>>>>In order to
receive the principal sum benefit for death from a disability policy, the death must occur
Accidental injuries - CORRECT ANSWER>>>>Which of the following are commonly
covered by medical expenses policies?
The amount of covered expenses that the insured pay before the insurer pays -
CORRECT ANSWER>>>>A health insurance deductible is
It is the distribution of successes of funds accumulated by the insurer and participating
policies. - CORRECT ANSWER>>>>Which of the following statements regarding
a life
insurance policy Dividened is true?
Losses due to fraud are eliminated. - CORRECT ANSWER>>>>Which of the following
is not a benefit of insurance?
Participating - CORRECT ANSWER>>>>John owns an insurance policy that gives him
the right to share and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the form of policy
dividends. - CORRECT ANSWER>>>>What is the participating life insurance policy?
Marketing - CORRECT ANSWER>>>>One important function of an insurance company
is to identify and sell potential customers which of these BEST describes this function?
, Mutual Insurer - CORRECT ANSWER>>>>An insurer on by its policyholders is called a
Demutualization - CORRECT ANSWER>>>>When a mutual insurer becomes a stock
company the process is called?
Increases the unknown premium reserve - CORRECT ANSWER>>>>Which is not a
characteristic for reinsurance?
Capitive insurer - CORRECT ANSWER>>>>Which of the following is an insurer
established by a parent company for the purpose of ensuring the parent companies loss
exposures?
Risk is eliminated - CORRECT ANSWER>>>>Which of the following is a type of
insurance where an insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict losses and
set appropriate premiums - CORRECT ANSWER>>>>And insured having a large
number of similar exposure unit it's considered important because.
Speculative risk - CORRECT ANSWER>>>>Which of the following is a situation where
there is a possibility of either lost or a gain?
Per risk is the only insurable risk - CORRECT ANSWER>>>>Which of these statements
correctly describes risk?
Probability that an event will occur - CORRECT ANSWER>>>>Which of the following is
not considered to be a definition of the term "loss"?
Lost must be castastrophic - CORRECT ANSWER>>>>Which of the following is not an
element of an insurable risk?
A condition that may increase the likelihood of a loss occurring. - CORRECT
ANSWER>>>>A hazard can be best described as.
Moral Hazard - CORRECT ANSWER>>>>Which of the following describes the increase
in the probability of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. - CORRECT
ANSWER>>>>Moral hazard is described as the
Loss Exposure - CORRECT ANSWER>>>>Which of the following is considered to be
ACCIDENT QUESTIONS FOR
PSI EXAMS WITH ANSWERS
The probability of loss is unknown - CORRECT ANSWER>>>>Loss retention is an
effective risk management technique when all of the following conditions exist EXCEPT
Never - CORRECT ANSWER>>>>When are parties to a contract required to
communicate information solely based on personal judgement for a matter in question?
Provides a payment only when the insured is totally disabled, but not receiving any
social insurance benefits plans - CORRECT ANSWER>>>>A disability income policy
social insurance supplement (SIS) benefit rider:
Reserves the right to change the premiums, but may not change any of its terms -
CORRECT ANSWER>>>>A disability policy, described as " guaranteed renewable" is
one where the insurance company.
Purchase additional insurance regardless of insurability - CORRECT
ANSWER>>>>The guaranteed insurability option provides the ability to:
Renewable term - CORRECT ANSWER>>>>Which type of insurance guarantees the
right to renew the policy each year, regardless of health but at an increased premium ?
Employers would be held responsible for the cost of their employee's work injuries
regardless of fault - CORRECT ANSWER>>>>The passage of worker's compensation
legislation meant.
insolvent - CORRECT ANSWER>>>>If an insurer is not able to meet financial
obligations when due, the insurer would be considered.
The policy face amount is paid out only upon the death of the first insured to die -
CORRECT ANSWER>>>>All of the following statements about survivorship life
insurance are true EXCEPT
waiver-of-premium provision - CORRECT ANSWER>>>>The insured is totally and
permanently disabled. The insured's policy continues in force with out the payment of a
premium because the policy contains a.
,The insurer will make the payments until the insured juvenile reaches a specified age -
CORRECT ANSWER>>>>The payor rider on a juvenile life policy provides that if the
payor dies or becomes disabled before the insured juvenile reaches the age specified
on the policy.
The contingent beneficiary shared death proceeds equally with the primary beneficiary
- CORRECT ANSWER>>>>All of the following statement about contingent
beneficiaries are true, EXCEPT
respite care - CORRECT ANSWER>>>>A form of rest or relief offered to family
members who are caring for a person who requieres continual care is.
RW and Associates underwriting for BLG Insurance Corporation - CORRECT
ANSWER>>>>RW and Associates is an agency which represents BIG insurance
corporation. RW and Associates may leave the name BIG Insurance Corporation in its
advertisements by clearly stating the relationship between the two businesses in any of
the following ways, EXCEPT.
An outside organization that process claims for an employer's self- funded plans -
CORRECT ANSWER>>>>An example of a third party administrator is
Term Insurance - CORRECT ANSWER>>>>An individual with a low income and high
insurance needs should buy.
Who joined the group after the effective date - CORRECT ANSWER>>>>The
probability period in a group health policy is intended for people
Accelerated Death Benefit - CORRECT ANSWER>>>>Which provision will pay a
portion of the death benefit prior to the insured's death due to a serious illness?
Suspend or revoke the license of the agent - CORRECT ANSWER>>>>What does the
insurance Commissioner have the right to do if an agent lacks authority from an insurer
named on a binder for coverage?
The total disability definition used by the Social Security Administration - CORRECT
ANSWER>>>>Which definition of disability is the most difficult for an injured worker to
satisfy?
Out living their financial resources - CORRECT ANSWER>>>>People commonly
purchase an annuity to protect against the risk of .
In one lump sum - CORRECT ANSWER>>>>In the event of an accidental death, the
,principal sum in a disability policy will be paid.
Provides assistance for a free based upon ability to pay - CORRECT
ANSWER>>>>Which of the following statements about the HICAP program is false?
HICAP
The greater the number insured, the more accurately the insurer can predict losses and
set appropriate premiums - CORRECT ANSWER>>>>Why is having a larger number of
similar exposures units important to insurers ?
Age 100 - CORRECT ANSWER>>>>The insured aged 65, owns $100,000 non-
participating whole life policy. The policy is paid- up as of today. When would the cash
value reach $100,000?
activities of daily living - CORRECT ANSWER>>>>A measure for rating an individual's
need for LTC benefits is called
With a specified number of days after injury - CORRECT ANSWER>>>>In order to
receive the principal sum benefit for death from a disability policy, the death must occur
Accidental injuries - CORRECT ANSWER>>>>Which of the following are commonly
covered by medical expenses policies?
The amount of covered expenses that the insured pay before the insurer pays -
CORRECT ANSWER>>>>A health insurance deductible is
It is the distribution of successes of funds accumulated by the insurer and participating
policies. - CORRECT ANSWER>>>>Which of the following statements regarding
a life
insurance policy Dividened is true?
Losses due to fraud are eliminated. - CORRECT ANSWER>>>>Which of the following
is not a benefit of insurance?
Participating - CORRECT ANSWER>>>>John owns an insurance policy that gives him
the right to share and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the form of policy
dividends. - CORRECT ANSWER>>>>What is the participating life insurance policy?
Marketing - CORRECT ANSWER>>>>One important function of an insurance company
is to identify and sell potential customers which of these BEST describes this function?
, Mutual Insurer - CORRECT ANSWER>>>>An insurer on by its policyholders is called a
Demutualization - CORRECT ANSWER>>>>When a mutual insurer becomes a stock
company the process is called?
Increases the unknown premium reserve - CORRECT ANSWER>>>>Which is not a
characteristic for reinsurance?
Capitive insurer - CORRECT ANSWER>>>>Which of the following is an insurer
established by a parent company for the purpose of ensuring the parent companies loss
exposures?
Risk is eliminated - CORRECT ANSWER>>>>Which of the following is a type of
insurance where an insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict losses and
set appropriate premiums - CORRECT ANSWER>>>>And insured having a large
number of similar exposure unit it's considered important because.
Speculative risk - CORRECT ANSWER>>>>Which of the following is a situation where
there is a possibility of either lost or a gain?
Per risk is the only insurable risk - CORRECT ANSWER>>>>Which of these statements
correctly describes risk?
Probability that an event will occur - CORRECT ANSWER>>>>Which of the following is
not considered to be a definition of the term "loss"?
Lost must be castastrophic - CORRECT ANSWER>>>>Which of the following is not an
element of an insurable risk?
A condition that may increase the likelihood of a loss occurring. - CORRECT
ANSWER>>>>A hazard can be best described as.
Moral Hazard - CORRECT ANSWER>>>>Which of the following describes the increase
in the probability of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. - CORRECT
ANSWER>>>>Moral hazard is described as the
Loss Exposure - CORRECT ANSWER>>>>Which of the following is considered to be
