PSI Life Exam question and answers 2025
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A common purpose for purchasing a fixed annuity is to - provide future economic
security, as payments do not fluctuate
A contract in which the company would be legally obligated to perform is considered -
conditional
A payor benefit rider would be found on which type of policy? - A juvenile life policy
A person who intentionally commits a criminal violation of an insurance law may be subject to a
MAXIMUM fine of - $5,000
A policy may contain provisions excluding or restricting coverage as specified in the event of
death under all of the following except - a fare-paying passenger traveling via commercial
transport
A policy summary MUST contain the - date on which the policy summary is prepared
A premium is due on a life insurance policy the first of each month. The policyowner failed to
pay the premium and 20 days later the insured died. Under which of the following provisions
would the death benefit be paid? - a nonforfeiture clause
All of the following factors are used in life insurance premium determination EXCEPT -
Morbidity
, All of the following statements regarding a group annuity are correct EXCEPT - Each
employee signs and receives an individual contract
An accelerated death benefit - Pays a portion of the face amount when a policyowner is
determined to be terminally ill
An annuity that guarantees a given number of income payments, whether or not the annuitant
is alive to receive them, is referred to as - a life annuity certain
An annuity where the policyowner chooses a pre-determined number of benefit payments is
referred to as - Period Certain
An applicant would be charged a higher premium for a life insurance policy if they were -
Older
An example of a risk that is NOT a pure risk would be - injury in an accident
An immediate annuity begins making payments after the - first premium has been paid
An immediate annuity is designed to make its first benefit payment to the annuitant typically -
one month from the annuity's purchase date
An important goal of the Interstate Insurance Product Regulation Compact is to - Provide
insurers a single point of filling for review and approval of certain policy forms
An individual who is NOT acceptable by an insurer at standard rates because of health, habits,
or occupation is called a - Substandard Risk
newest
A common purpose for purchasing a fixed annuity is to - provide future economic
security, as payments do not fluctuate
A contract in which the company would be legally obligated to perform is considered -
conditional
A payor benefit rider would be found on which type of policy? - A juvenile life policy
A person who intentionally commits a criminal violation of an insurance law may be subject to a
MAXIMUM fine of - $5,000
A policy may contain provisions excluding or restricting coverage as specified in the event of
death under all of the following except - a fare-paying passenger traveling via commercial
transport
A policy summary MUST contain the - date on which the policy summary is prepared
A premium is due on a life insurance policy the first of each month. The policyowner failed to
pay the premium and 20 days later the insured died. Under which of the following provisions
would the death benefit be paid? - a nonforfeiture clause
All of the following factors are used in life insurance premium determination EXCEPT -
Morbidity
, All of the following statements regarding a group annuity are correct EXCEPT - Each
employee signs and receives an individual contract
An accelerated death benefit - Pays a portion of the face amount when a policyowner is
determined to be terminally ill
An annuity that guarantees a given number of income payments, whether or not the annuitant
is alive to receive them, is referred to as - a life annuity certain
An annuity where the policyowner chooses a pre-determined number of benefit payments is
referred to as - Period Certain
An applicant would be charged a higher premium for a life insurance policy if they were -
Older
An example of a risk that is NOT a pure risk would be - injury in an accident
An immediate annuity begins making payments after the - first premium has been paid
An immediate annuity is designed to make its first benefit payment to the annuitant typically -
one month from the annuity's purchase date
An important goal of the Interstate Insurance Product Regulation Compact is to - Provide
insurers a single point of filling for review and approval of certain policy forms
An individual who is NOT acceptable by an insurer at standard rates because of health, habits,
or occupation is called a - Substandard Risk
