PSI Life Exam with Verified Answers 100% Pass
Which type of life policy can be continued year after year without a required medical
examination but rates are dependent on the insured's current age?
A. Whole life
B. Variable life
C. Flexible term
D. Renewable term - ANSWERRenewable term
Under which situation must insurable interest exist between the applicant and insured at
the time of application?
A. When a third-party applicant names themselves beneficiary.
B. When the applicant and the insured are the same person.
C. When the beneficiary is a member of the applicant's immediate family
D. When a third-party applicant names the insured's company as beneficiary. –
ANSWER When a third-party applicant names themselves beneficiary.
Why is the accidental death benefit referred to as double indemnity?
A. It provides for both the actual death as well as other losses from the accident
B. It provides twice the face value in the policy for death due to accident.
C. The beneficiaries have twice the amount of time to provide proof of loss.
D. The beneficiaries must provide proof of death due to multiple causes. - ANSWERIt
provides twice the face value in the policy for death due to accident.
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application?
A. The applicant and possibly the agent initial any changes made.
B. The applicant and the agent sign a document that outlines changes made.
C. An arbitration agreement is signed at the time of the signing of the application.
D. All changes must be approved by the underwriter prior to the submission of the
application. - ANSWERThe applicant and possibly the agent initial any changes made.
Short term disability insurance generally only covers injuries due to which of the
following?
A. Occupational injuries
B. Non-occupational injuries
C. injuries covered during the enrollment period
D. injuries not covered by other insurance - ANSWERNon-occupational injuries
Which type of receipt makes the insurer liable for the risk from the date of application,
regardless of the applicant's insurability?
A. binding receipt
B. conditional receipt
C. inspection receipt
D. temporary receipt - ANSWERbinding receipt
, All of the following are tax qualified retirement plans EXCEPT
A. 401(k)
B. 403(b)
C. Section 529 plan
D. SIMPLE IRA - ANSWERSection 529 plan
Obtaining consumer information reports under false pretenses is prosecutable by which
of the following?
A. USA Patriot Act
B. Fair Credit Reporting Act
C. State laws where the applicant resides
D. Securities and Exchange Commission - ANSWERFair Credit Reporting Act
Which of the following is TRUE of a point of service plan (POS)?
A. Patients must submit claim forms for all services received.
B. The difference in cost between in-network and out-of-network is relatively small.
C. A patient's care is coordinated by an in-network primary care physician.
D. A patient may see any provider for any condition for the same cost and does not
need to consult a primary care physician. – ANSWER A patient's care is coordinated by
an in-network primary care physician.
Which of the following is TRUE of the limited pay whole life policy?
A. Coverage ends when the policy is paid-up.
B. Coverage continues after the policy is paid-up.
C. Premium payments increase as the insured ages.
D. Premium payments are lower than continuous premium whole life. – ANSWER
Coverage continues after the policy is paid-up.
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. insurer's practices with respect to the treatment of this information.
B. the applicant's rights to maintain privacy.
C. an opportunity to refuse the dissemination of the information.
D. the treatment procedures that are covered by the policy. - ANSWERthe treatment
procedures that are covered by the policy.Which of the following is the most common
method to supplement Medicare coverage?
A. Medicaid
B. Group health insurance
C. Employer Health Insurance
D. Coverage offered by private insurers - ANSWERCoverage offered by private insurers
Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness?
A. Disability income insurance
B. Credit disability insurance
C. Recurrent disability insurance
Which type of life policy can be continued year after year without a required medical
examination but rates are dependent on the insured's current age?
A. Whole life
B. Variable life
C. Flexible term
D. Renewable term - ANSWERRenewable term
Under which situation must insurable interest exist between the applicant and insured at
the time of application?
A. When a third-party applicant names themselves beneficiary.
B. When the applicant and the insured are the same person.
C. When the beneficiary is a member of the applicant's immediate family
D. When a third-party applicant names the insured's company as beneficiary. –
ANSWER When a third-party applicant names themselves beneficiary.
Why is the accidental death benefit referred to as double indemnity?
A. It provides for both the actual death as well as other losses from the accident
B. It provides twice the face value in the policy for death due to accident.
C. The beneficiaries have twice the amount of time to provide proof of loss.
D. The beneficiaries must provide proof of death due to multiple causes. - ANSWERIt
provides twice the face value in the policy for death due to accident.
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application?
A. The applicant and possibly the agent initial any changes made.
B. The applicant and the agent sign a document that outlines changes made.
C. An arbitration agreement is signed at the time of the signing of the application.
D. All changes must be approved by the underwriter prior to the submission of the
application. - ANSWERThe applicant and possibly the agent initial any changes made.
Short term disability insurance generally only covers injuries due to which of the
following?
A. Occupational injuries
B. Non-occupational injuries
C. injuries covered during the enrollment period
D. injuries not covered by other insurance - ANSWERNon-occupational injuries
Which type of receipt makes the insurer liable for the risk from the date of application,
regardless of the applicant's insurability?
A. binding receipt
B. conditional receipt
C. inspection receipt
D. temporary receipt - ANSWERbinding receipt
, All of the following are tax qualified retirement plans EXCEPT
A. 401(k)
B. 403(b)
C. Section 529 plan
D. SIMPLE IRA - ANSWERSection 529 plan
Obtaining consumer information reports under false pretenses is prosecutable by which
of the following?
A. USA Patriot Act
B. Fair Credit Reporting Act
C. State laws where the applicant resides
D. Securities and Exchange Commission - ANSWERFair Credit Reporting Act
Which of the following is TRUE of a point of service plan (POS)?
A. Patients must submit claim forms for all services received.
B. The difference in cost between in-network and out-of-network is relatively small.
C. A patient's care is coordinated by an in-network primary care physician.
D. A patient may see any provider for any condition for the same cost and does not
need to consult a primary care physician. – ANSWER A patient's care is coordinated by
an in-network primary care physician.
Which of the following is TRUE of the limited pay whole life policy?
A. Coverage ends when the policy is paid-up.
B. Coverage continues after the policy is paid-up.
C. Premium payments increase as the insured ages.
D. Premium payments are lower than continuous premium whole life. – ANSWER
Coverage continues after the policy is paid-up.
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. insurer's practices with respect to the treatment of this information.
B. the applicant's rights to maintain privacy.
C. an opportunity to refuse the dissemination of the information.
D. the treatment procedures that are covered by the policy. - ANSWERthe treatment
procedures that are covered by the policy.Which of the following is the most common
method to supplement Medicare coverage?
A. Medicaid
B. Group health insurance
C. Employer Health Insurance
D. Coverage offered by private insurers - ANSWERCoverage offered by private insurers
Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness?
A. Disability income insurance
B. Credit disability insurance
C. Recurrent disability insurance
