PSI LIFE INSURANCE EXAM QUESTIONS WITH CORRECT ANSWERS 2025

PSI LIFE INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS 2025
DuringUwhichUperiodUofUaUDisabilityUIncomeUPolicyUisUcoverageUeffectiveUbutUduringUwhichUnoUbenefitsUwil
lUbeUpaidUunderUtheUpolicy?U-UCORRECTUANSWERU-ProbationaryUperiod



AllUofUtheUfollowingUareUcommonUexclusionsUfromUlossUfoundUinUdisabilityUincomeUpoliciesUEXCEPTUforUtha
tUincurredUwhileU-UCORRECTUANSWERU-committingUaUmisdemeanor



WhatUisUtheUprimaryUadvantageUforUobtainingUaUreinstatementUofUaUpolicyUratherUthanUobtainingUaUnewUo
ne?U-UCORRECTUANSWERU-insuredUoriginalUissueUageUisUused



HowUdoesUaUnoncancelableUpolicyUdifferUfromUaUguaranteedUrenewableUpolicy?U-UCORRECTUANSWERU-
WithUtheUnoncancelableUpolicyUtheUinsurerUmayUincreaseUpremiumsUonlyUbasedUonUtheUtermsUofUtheUpoli
cy.



WhatUdoesUfirstUdollarUcoverageUmean?U-UCORRECTUANSWERU-
AsUsoonUasUcoveredUmedicalUexpensesUareUincurred,UtheUpolicyUbeginsUtoUpay.



WhatUisUtheUmaximumUamountUofUtimeUtheUinsuredUhasUtoUfileUlegalUactionUagainstUtheUinsurerUafterUwrit
tenUproofUofUlossUisUprovided?U-UCORRECTUANSWERU-3Uyears



WhatUisUaUMIBUreport?U-UCORRECTUANSWERU-
medicalUinformationUonUanUapplicantUforUassessingUlifeUorUhealthUinsuranceUrisk



AllUofUtheUfollowingUareUTRUEUregardingUincompleteUapplicationsUEXCEPTU-UCORRECTUANSWERU-
theUincompleteUapplicationUcanUbeUacceptedUwithUtheUmissingUinformationUaddedUlater.



WhyUareUinsuranceUpoliciesUconsideredUconditionalUcontracts?U-UCORRECTUANSWERU-
CertainUconditionsUneedUtoUbeUmetUtoUmakeUtheUcontractUlegallyUenforceable.



WhenUdoesUinsurableUinterestUcomeUintoUplayUinUaUlifeUinsuranceUpolicy?U-UCORRECTUANSWERU-
whenUtheUapplicantUforUtheUpolicyUisUnotUtheUinsured

, WhichUtypeUofUreceiptUmakesUtheUinsurerUliableUforUtheUriskUfromUtheUdateUofUapplication,UregardlessUofUt
heUapplicant'sUinsurability?U-UCORRECTUANSWERU-bindingUreceipt



WhatUspecificUnewUproceduresUdoesUtheUUSAUPatriotUActUrequireUofUinsuranceUcompanies?U-
UCORRECTUANSWERU-EstablishUanUanti-moneyUlaunderingUprogram




WhatUisUtheUpurposeUofUStranger-originatedUlifeUinsuranceU(STOLI)?U-UCORRECTUANSWERU-
heUpolicyUoriginatedUprimarilyUorUsolelyUforUtheUpurposeUofUresale.



HowUdoUwarrantiesUdifferUfromUrepresentations?U-UCORRECTUANSWERU-
aUwarrantyUisUguaranteedUtoUbeUtrue,UaUrepresentationUisUbelievedUtoUbeUtrueUtoUtheUbestUofUone'sUknowl
edge.



ObtainingUconsumerUinformationUreportsUunderUfalseUpretensesUisUprosecutableUbyUwhichUofUtheUfollowi
ng?U-UCORRECTUANSWERU-FairUCreditUReportingUAct



WhichUofUtheUfollowingUwasUspecificallyUdesignedUtoUaddressUSTOLIUandUIOLIUpractices?U-
UCORRECTUANSWERU-NCOILUAct




WhichUofUtheUfollowingUoccursUimmediatelyUafterUtheUapplicationUisUsubmittedUandUtheUinitialUpremiumUp
aid?U-UCORRECTUANSWERU-theUunderwritingUprocessUbegins



AUconsumerUreportUusedUtoUdetermineUeligibilityUforUinsuranceUmayUincludeUallUofUtheUfollowingUEXCEPTU-
UCORRECTUANSWERU-medicalUunderwritingUexam




ForUanUindividualUlong-
termUcareUpolicyUthereUisUanUannualUdollarUlimitUforUtaxUdeductionsUthatUisUbasedUonUwhichUofUtheUfollowi
ng?U-UCORRECTUANSWERU-age



UnderUwhichUsituationUmustUinsurableUinterestUexistUbetweenUtheUapplicantUandUinsuredUatUtheUtimeUofUa
pplication?U-UCORRECTUANSWERU-WhenUaUthird-partyUapplicantUnamesUthemselvesUbeneficiary.