PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest
possible opportunity (in most cases)? ANSW✅✅The producer.
What is the waiver of premium provision? ANSW✅✅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? ANSW✅✅Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? ANSW✅✅The actual amount of the
annuity benefit cannot be determined in advance.
What does coninsurance mean? ANSW✅✅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? ANSW✅✅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?
ANSW✅✅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? ANSW✅✅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? ANSW✅✅Participating
policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? ANSW✅✅The
proceeds are divided equally among living primary beneficiaries.
, How does a noncancelable policy differ from a guaranteed renewable policy? ANSW✅✅With the
noncancelable policy the insurer may increase premiums only based on the terms of the policy.
Which of the following refers to how often a premium is paid? ANSW✅✅Mode
What is the return of premium rider? ANSW✅✅An increasing amount of term insurance that
always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? ANSW✅✅As soon as covered medical expenses are
incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered
during the policy's initial: ANSW✅✅2 year period
All of the following are required signatures on a life insurance application EXCEPT? ANSW✅✅The
minor in a juvenile policy.
Under the misstatement of age or gender provision, what happens if it is determined at death that
the insured's age or gender was misstated on a life insurance policy application?
ANSW✅✅Benefits are adjusted to an amount that the premium would have purchased at the
correct age or gender.
Which of the following must be given to the insurer within 20 days after occurrence or
commencement of any loss covered by the policy, or as thereafter as is reasonably possible?
ANSW✅✅Notice of claim.
When will a policy pay on a UCR basis? ANSW✅✅When particular benefits are not listed on a
payment schedule.
All of the following are non-forfeiture options EXCEPT ANSW✅✅Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? ANSW✅✅The
insured will pay all of the remaining medial costs for as long as the policy is in force.
PRACTICE EXAM QUESTIONS AND
CORRECT ANSWERS
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest
possible opportunity (in most cases)? ANSW✅✅The producer.
What is the waiver of premium provision? ANSW✅✅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? ANSW✅✅Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? ANSW✅✅The actual amount of the
annuity benefit cannot be determined in advance.
What does coninsurance mean? ANSW✅✅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? ANSW✅✅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?
ANSW✅✅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? ANSW✅✅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? ANSW✅✅Participating
policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? ANSW✅✅The
proceeds are divided equally among living primary beneficiaries.
, How does a noncancelable policy differ from a guaranteed renewable policy? ANSW✅✅With the
noncancelable policy the insurer may increase premiums only based on the terms of the policy.
Which of the following refers to how often a premium is paid? ANSW✅✅Mode
What is the return of premium rider? ANSW✅✅An increasing amount of term insurance that
always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? ANSW✅✅As soon as covered medical expenses are
incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered
during the policy's initial: ANSW✅✅2 year period
All of the following are required signatures on a life insurance application EXCEPT? ANSW✅✅The
minor in a juvenile policy.
Under the misstatement of age or gender provision, what happens if it is determined at death that
the insured's age or gender was misstated on a life insurance policy application?
ANSW✅✅Benefits are adjusted to an amount that the premium would have purchased at the
correct age or gender.
Which of the following must be given to the insurer within 20 days after occurrence or
commencement of any loss covered by the policy, or as thereafter as is reasonably possible?
ANSW✅✅Notice of claim.
When will a policy pay on a UCR basis? ANSW✅✅When particular benefits are not listed on a
payment schedule.
All of the following are non-forfeiture options EXCEPT ANSW✅✅Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? ANSW✅✅The
insured will pay all of the remaining medial costs for as long as the policy is in force.
