PSI LIFE EXAM PREP QUESTIONS AND
ANSWERS 2026 GRADED A+
◉ Upon the issuance of a conditional receipt for a renewal when the
premium is paid AFTER the time granted by the insurer, what is the
maximum amount of time for reinstatement of the policy? Answer: 30
days
◉ Which of the following statements regarding a pure life annuity
payout option is correct? Answer: This option provides the highest
monthly income.
◉ Which of the following does not apply to the time limit on certain
defenses provision in health insurance policies? Answer: fraudulent
misstatements
◉ If an individual is insured by both their own health insurance policy
and their spouse's policy, which policy pays first in the event of an
illness? Answer: The individual's policy pays first, the spouse's policy
pays the remaining up to coverage amount.
◉ When can the premiums of an individually owned health insurance
policy be deducted from the individual's income tax? Answer: when the
,taxpayer's unreimbursed medical expenses exceed 7.5% of adjusted
gross income during a taxable year
◉ When the suicide clause is inserted in a life insurance contract, death
by suicide is not covered during the policy's initial. Answer: 2 year
period.
◉ Which of the following is a characteristic of Health Maintenance
Organizations (HMOs)? Answer: preventive care
◉ The life insurance policy will not be truly effective until all of the
following occur EXCEPT. Answer: the producer has explained the
policy to the client.
◉ Under which situation must insurable interest exist between the
applicant and insured at the time of application? Answer: when a third-
party applicant names themselves beneficiary
◉ Which of the following is a distinguishing feature of a variable life
insurance policy? Answer: The cash value earnings are based on the
performance of the separate account.
◉ The person who receives the benefit of an annuity is known as the.
Answer: annuitant.
,◉ Which of the following is an example of a premium payment mode?
Answer: annual premium payment
◉ How do most disability policies handle the case of a recurrent
disability occurring at least 90 days after the first claim? Answer: it must
be handled as a new claim for a new period of disability, requiring a new
elimination period.
◉ Which of the following is true for most comprehensive dental
policies? Answer: Routine care is provided without coinsurance or
deductibles.
◉ Under a Medicare Supplement Policy, preexisting conditions
CANNOT be excluded after how many months from the effective date
of the policy? Answer: 6 months
◉ What does an application for insurance contractually represent for the
insured? Answer: an offer
◉ Which of the following is exempted from the incontestability
provision in insurance policies? Answer: fraudulent misstatements
◉ Which of the following may be thought of as a time deductible rather
than a dollar deductible in a disability income policy because benefits
are not payable during that time? Answer: elimination period
, ◉ How long after being entitled to Social Security disability benefits
will an individual be eligible to receive Medicare benefits? Answer: 2
years
◉ If a policy is determined to be a Modified Endowment Contract
(MEC), funds received under the policy will be. Answer: considered
taxable income first.
◉ Which type of annuity attempts to offset inflation by providing a
benefit linked to an underlying investment account? Answer: variable
◉ What is a MIB report? Answer: medical information on an applicant
for assessing life or health insurance risk
◉ Group Life Policies typically include which of the following
provisions? Answer: conversion privilege
◉ In a case where an individual's health is insured by both their own
policy and their spouse's policy, which policy pays in the event of an
illness? Answer: The individual's policy pays first, the spouse's policy
pays the remaining up to coverage amount.
◉ The feature of a Life Insurance Policy stating that the policy will
NOT cover certain risks is known as. Answer: exclusion.
ANSWERS 2026 GRADED A+
◉ Upon the issuance of a conditional receipt for a renewal when the
premium is paid AFTER the time granted by the insurer, what is the
maximum amount of time for reinstatement of the policy? Answer: 30
days
◉ Which of the following statements regarding a pure life annuity
payout option is correct? Answer: This option provides the highest
monthly income.
◉ Which of the following does not apply to the time limit on certain
defenses provision in health insurance policies? Answer: fraudulent
misstatements
◉ If an individual is insured by both their own health insurance policy
and their spouse's policy, which policy pays first in the event of an
illness? Answer: The individual's policy pays first, the spouse's policy
pays the remaining up to coverage amount.
◉ When can the premiums of an individually owned health insurance
policy be deducted from the individual's income tax? Answer: when the
,taxpayer's unreimbursed medical expenses exceed 7.5% of adjusted
gross income during a taxable year
◉ When the suicide clause is inserted in a life insurance contract, death
by suicide is not covered during the policy's initial. Answer: 2 year
period.
◉ Which of the following is a characteristic of Health Maintenance
Organizations (HMOs)? Answer: preventive care
◉ The life insurance policy will not be truly effective until all of the
following occur EXCEPT. Answer: the producer has explained the
policy to the client.
◉ Under which situation must insurable interest exist between the
applicant and insured at the time of application? Answer: when a third-
party applicant names themselves beneficiary
◉ Which of the following is a distinguishing feature of a variable life
insurance policy? Answer: The cash value earnings are based on the
performance of the separate account.
◉ The person who receives the benefit of an annuity is known as the.
Answer: annuitant.
,◉ Which of the following is an example of a premium payment mode?
Answer: annual premium payment
◉ How do most disability policies handle the case of a recurrent
disability occurring at least 90 days after the first claim? Answer: it must
be handled as a new claim for a new period of disability, requiring a new
elimination period.
◉ Which of the following is true for most comprehensive dental
policies? Answer: Routine care is provided without coinsurance or
deductibles.
◉ Under a Medicare Supplement Policy, preexisting conditions
CANNOT be excluded after how many months from the effective date
of the policy? Answer: 6 months
◉ What does an application for insurance contractually represent for the
insured? Answer: an offer
◉ Which of the following is exempted from the incontestability
provision in insurance policies? Answer: fraudulent misstatements
◉ Which of the following may be thought of as a time deductible rather
than a dollar deductible in a disability income policy because benefits
are not payable during that time? Answer: elimination period
, ◉ How long after being entitled to Social Security disability benefits
will an individual be eligible to receive Medicare benefits? Answer: 2
years
◉ If a policy is determined to be a Modified Endowment Contract
(MEC), funds received under the policy will be. Answer: considered
taxable income first.
◉ Which type of annuity attempts to offset inflation by providing a
benefit linked to an underlying investment account? Answer: variable
◉ What is a MIB report? Answer: medical information on an applicant
for assessing life or health insurance risk
◉ Group Life Policies typically include which of the following
provisions? Answer: conversion privilege
◉ In a case where an individual's health is insured by both their own
policy and their spouse's policy, which policy pays in the event of an
illness? Answer: The individual's policy pays first, the spouse's policy
pays the remaining up to coverage amount.
◉ The feature of a Life Insurance Policy stating that the policy will
NOT cover certain risks is known as. Answer: exclusion.
