PSI Online Practice Life Exam Questions
and Answers (Graded A)
If the insurer wishes to share an applicant's HIV status, the applicant must be given full
notice of all of the following EXCEPT
A-The applicant's rights to maintain privacy
B-An opportunity to refuse the dissemination of the information
C-Insurer's practices with respect to the treatment of this information
D-The treatment procedures that are covered by the policy. - ANSWER-D
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while
A) committing a misdemeanor
B) piloting a personal aircraft
C) living overseas
D) serving in the military - ANSWER-A
What type of insurance should a company purchase if it wants to insure the life of its
CEO?
A) BOE insurance
B) key person insurance
C) industrial life insurance
D) group life policy - ANSWER-B
For an individual long-term care policy there is an annual dollar limit for tax-deductions
that is base on which of the following?
A) age
B) premium cost
C) cost of care
D) policy value - ANSWER-A
Which of the following is exempted from the incontestability provision in insurance
policies?
A) change in health
B) pre-existing conditions
C) changes in the insurance code
, D) fraudulent misstatements - ANSWER-D
Which of the following term insurance types provides temporary protection that can be
changed to some type of permanent protection without evidence of insurability?
A) re-entry
B) decreasing
C) level
D) convertible - ANSWER-D
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?
A) Refund life annuity option
B) Life annuity certain option
C) Joint life option
D) Joint and survivorship option - ANSWER-D
Which one of the following is particularly important for an insurance producer to explain
to a client upon delivery of a life insurance policy?
A) the effective date
B) premium due dates
C) any exclusions
loan interest rates - ANSWER-C
All of the following are ownership rights EXCEPT
A) assigning all of the rights of the policy to another person
B) switching the policy from one insured to anther
C) borrowing funds against cash value
D) changing the beneficiary of the policy - ANSWER-B
How might someone cover the extra expenses of child care and home-related costs?
A) adding coverage of a grandparent
B) purchasing a substitute insured rider
C) adding cost of living coverage
D) purchasing family term insurance - ANSWER-D
All of the following are required signatures on a life insurance application EXCEPT
A) the agent
B) the proposed insured
C) the minor in a juvenile policy
and Answers (Graded A)
If the insurer wishes to share an applicant's HIV status, the applicant must be given full
notice of all of the following EXCEPT
A-The applicant's rights to maintain privacy
B-An opportunity to refuse the dissemination of the information
C-Insurer's practices with respect to the treatment of this information
D-The treatment procedures that are covered by the policy. - ANSWER-D
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while
A) committing a misdemeanor
B) piloting a personal aircraft
C) living overseas
D) serving in the military - ANSWER-A
What type of insurance should a company purchase if it wants to insure the life of its
CEO?
A) BOE insurance
B) key person insurance
C) industrial life insurance
D) group life policy - ANSWER-B
For an individual long-term care policy there is an annual dollar limit for tax-deductions
that is base on which of the following?
A) age
B) premium cost
C) cost of care
D) policy value - ANSWER-A
Which of the following is exempted from the incontestability provision in insurance
policies?
A) change in health
B) pre-existing conditions
C) changes in the insurance code
, D) fraudulent misstatements - ANSWER-D
Which of the following term insurance types provides temporary protection that can be
changed to some type of permanent protection without evidence of insurability?
A) re-entry
B) decreasing
C) level
D) convertible - ANSWER-D
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?
A) Refund life annuity option
B) Life annuity certain option
C) Joint life option
D) Joint and survivorship option - ANSWER-D
Which one of the following is particularly important for an insurance producer to explain
to a client upon delivery of a life insurance policy?
A) the effective date
B) premium due dates
C) any exclusions
loan interest rates - ANSWER-C
All of the following are ownership rights EXCEPT
A) assigning all of the rights of the policy to another person
B) switching the policy from one insured to anther
C) borrowing funds against cash value
D) changing the beneficiary of the policy - ANSWER-B
How might someone cover the extra expenses of child care and home-related costs?
A) adding coverage of a grandparent
B) purchasing a substitute insured rider
C) adding cost of living coverage
D) purchasing family term insurance - ANSWER-D
All of the following are required signatures on a life insurance application EXCEPT
A) the agent
B) the proposed insured
C) the minor in a juvenile policy
