PSI life, accident, and health questions
and answers 2025\2026 A+ Grade
How long after being entitled to disability benefits will an individual be eligible to receive Medicare
benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65
- correct answer 2 years
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the total of premiums paid up to the
current point
B. a provision that allows the insured to cancel the policy in the first two years and have premiums
refunded
C. an increasing amount of term insurance that equals the cash value of the policy at any point in time
D. a provision that states the insurer must return any premiums paid during the free-look period
- correct answer an increasing amount of term insurance that always equals the total of premiums paid
up to the current point
In a home healthcare benefit, all of the following are eligible expenses EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
C. blood transfusions
D. medical social services;
- correct answer blood transfusions
,All of the following are classifications of risk EXCEPT
A. substandard
B. preferred
C. declined
D. non-nicotine
- correct answer non-nicotine
Which of the following is exempted from the incontestability provision in insurance policies?
A. fraudulent misstatements
B. pre-existing conditions
C. change in health
D. changes in the insurance code
- correct answer fraudulent misstatements
A group conversion option may be used in all the following instances EXCEPT
A. the termination of the master policy.
B. loss of coverage due to loss of employment.
C. loss of eligibility on the part of a class of insureds.
D. a life-changing event, such as marriage, divorce, or childbirth.
- correct answer a life-changing event, such as marriage, divorce, or childbirth.
Which of the following is characteristic of a non-qualified plan?
A. defined vesting schedule
B. plan established by the employer
C. plan does not meet federal guidelines for tax benefits
D. employer contributions are deductible business expenses
- correct answer plan does not meet federal guidelines for tax benefits
What does it mean if a health policy is conditionally renewable?
A. Insurer may elect NOT to renew based on the health of the insured.
, B. Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date.
C. Insurer may elect NOT to renew only under conditions specified in the policy.
D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims.
- correct answer Insurer may elect NOT to renew only under conditions specified in the policy.
Which of the following is TRUE of an equity-indexed annuity?
A. It is a variable annuity.
B. It may decrease in value.
C. It requires a securities license to sell.
D. It has a guaranteed minimum interest rate.
- correct answer It has a guaranteed minimum interest rate
During which period of a Disability Income Policy is coverage effective but during which no benefits will
be paid under the policy?
A. benefit period
B. elimination period
C. grace period
D. probationary period
- correct answer probationary period
What specific new procedures does the USA Patriot Act require of insurance companies?
A. Establish an anti-money laundering program
B. Investigate applicants for potential terrorist links
C. Report large transactions by charitable organizations
D. To take action against employees for failure to implement the Act.
- correct answer Establish an anti-money laundering program
A consumer report used to determine eligibility for insurance may include all of the following EXCEPT
A. character.
B. reputation.
and answers 2025\2026 A+ Grade
How long after being entitled to disability benefits will an individual be eligible to receive Medicare
benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65
- correct answer 2 years
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the total of premiums paid up to the
current point
B. a provision that allows the insured to cancel the policy in the first two years and have premiums
refunded
C. an increasing amount of term insurance that equals the cash value of the policy at any point in time
D. a provision that states the insurer must return any premiums paid during the free-look period
- correct answer an increasing amount of term insurance that always equals the total of premiums paid
up to the current point
In a home healthcare benefit, all of the following are eligible expenses EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
C. blood transfusions
D. medical social services;
- correct answer blood transfusions
,All of the following are classifications of risk EXCEPT
A. substandard
B. preferred
C. declined
D. non-nicotine
- correct answer non-nicotine
Which of the following is exempted from the incontestability provision in insurance policies?
A. fraudulent misstatements
B. pre-existing conditions
C. change in health
D. changes in the insurance code
- correct answer fraudulent misstatements
A group conversion option may be used in all the following instances EXCEPT
A. the termination of the master policy.
B. loss of coverage due to loss of employment.
C. loss of eligibility on the part of a class of insureds.
D. a life-changing event, such as marriage, divorce, or childbirth.
- correct answer a life-changing event, such as marriage, divorce, or childbirth.
Which of the following is characteristic of a non-qualified plan?
A. defined vesting schedule
B. plan established by the employer
C. plan does not meet federal guidelines for tax benefits
D. employer contributions are deductible business expenses
- correct answer plan does not meet federal guidelines for tax benefits
What does it mean if a health policy is conditionally renewable?
A. Insurer may elect NOT to renew based on the health of the insured.
, B. Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date.
C. Insurer may elect NOT to renew only under conditions specified in the policy.
D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims.
- correct answer Insurer may elect NOT to renew only under conditions specified in the policy.
Which of the following is TRUE of an equity-indexed annuity?
A. It is a variable annuity.
B. It may decrease in value.
C. It requires a securities license to sell.
D. It has a guaranteed minimum interest rate.
- correct answer It has a guaranteed minimum interest rate
During which period of a Disability Income Policy is coverage effective but during which no benefits will
be paid under the policy?
A. benefit period
B. elimination period
C. grace period
D. probationary period
- correct answer probationary period
What specific new procedures does the USA Patriot Act require of insurance companies?
A. Establish an anti-money laundering program
B. Investigate applicants for potential terrorist links
C. Report large transactions by charitable organizations
D. To take action against employees for failure to implement the Act.
- correct answer Establish an anti-money laundering program
A consumer report used to determine eligibility for insurance may include all of the following EXCEPT
A. character.
B. reputation.
