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PSI LIFE INSURANCE EXAM ACTUAL PREP
QUESTIONS AND WELL REVISED ANSWERS -
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS – ASSURES PASS
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 policy type is backed by equity investments and allows the policyholder to
adjust the death benefit? - ANSWER: Variable Universal Life
Which whole life policy premium type is the most common? - ANSWER:
Continuous Premium
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 lists the three common types of permanent individual life
insurance? - ANSWER: Variable Life, Whole Life, Universal Life
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Which of the following is TRUE of an equity-indexed annuity? - ANSWER: It has
a guaranteed minimum interest rate.
Current assumption whole life policies are sensitive to which of the following? -
ANSWER: interest rates
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 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 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
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How does the per capita rule apply to proceeds from a life insurance policy? -
ANSWER: The proceeds are divided equally among living primary beneficiaries.
All of the following are common exclusions from loss found in disability income
policies EXCEPT for that incurred while - ANSWER: commiting a misdemeanor
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? - ANSWER: common disaster
clause
What is the order in which beneficiaries receive proceeds from a life insurance
policy? - ANSWER: succession of beneficiaries
The right to change the beneficiary or dispose of the policy or its benefits in any
manner one chooses is reserved to the policyowner UNLESS which of the
following is true? - ANSWER: The policyowner has named an irrevocable
beneficiary.
How might someone cover the extra expenses of child care and home-related
costs? - ANSWER: purchasing family term insurance
Under the misstatement of age provision, what happens if it is determined at death
that the insured's age or gender was misstated on a life insurance policy
PSI LIFE INSURANCE EXAM ACTUAL PREP
QUESTIONS AND WELL REVISED ANSWERS -
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS – ASSURES PASS
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 policy type is backed by equity investments and allows the policyholder to
adjust the death benefit? - ANSWER: Variable Universal Life
Which whole life policy premium type is the most common? - ANSWER:
Continuous Premium
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 lists the three common types of permanent individual life
insurance? - ANSWER: Variable Life, Whole Life, Universal Life
,2|Page
Which of the following is TRUE of an equity-indexed annuity? - ANSWER: It has
a guaranteed minimum interest rate.
Current assumption whole life policies are sensitive to which of the following? -
ANSWER: interest rates
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 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 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
, 3|Page
How does the per capita rule apply to proceeds from a life insurance policy? -
ANSWER: The proceeds are divided equally among living primary beneficiaries.
All of the following are common exclusions from loss found in disability income
policies EXCEPT for that incurred while - ANSWER: commiting a misdemeanor
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? - ANSWER: common disaster
clause
What is the order in which beneficiaries receive proceeds from a life insurance
policy? - ANSWER: succession of beneficiaries
The right to change the beneficiary or dispose of the policy or its benefits in any
manner one chooses is reserved to the policyowner UNLESS which of the
following is true? - ANSWER: The policyowner has named an irrevocable
beneficiary.
How might someone cover the extra expenses of child care and home-related
costs? - ANSWER: purchasing family term insurance
Under the misstatement of age provision, what happens if it is determined at death
that the insured's age or gender was misstated on a life insurance policy
