PSI LIFE INSURANCE EXAM LATEST 2026
EXAMINATION TEST COMPLETE
QUESTIONS AND SOLUTIONS
⩥ What is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? Answer: insured original issue
age is used
⩥ How does a noncancelable policy differ from a guaranteed renewable
policy? Answer: With the noncancelable policy the insurer may increase
premiums only based on the terms of the policy.
⩥ What does first dollar coverage mean? Answer: As soon as covered
medical expenses are incurred, the policy begins to pay.
⩥ What is the maximum amount of time the insured has to file legal
action against the insurer after written proof of loss is provided? Answer:
3 years
⩥ What is a MIB report? Answer: medical information on an applicant
for assessing life or health insurance risk
, ⩥ All of the following are TRUE regarding incomplete applications
EXCEPT Answer: the incomplete application can be accepted with the
missing information added later.
⩥ Why are insurance policies considered conditional contracts? Answer:
Certain conditions need to be met to make the contract legally
enforceable.
⩥ When does insurable interest come into play in a life insurance
policy? Answer: when the applicant for the policy is not the insured
⩥ Which type of receipt makes the insurer liable for the risk from the
date of application, regardless of the applicant's insurability? Answer:
binding receipt
⩥ What specific new procedures does the USA Patriot Act require of
insurance companies? Answer: Establish an anti-money laundering
program
⩥ What is the purpose of Stranger-originated life insurance (STOLI)?
Answer: he policy originated primarily or solely for the purpose of
resale.
EXAMINATION TEST COMPLETE
QUESTIONS AND SOLUTIONS
⩥ What is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? Answer: insured original issue
age is used
⩥ How does a noncancelable policy differ from a guaranteed renewable
policy? Answer: With the noncancelable policy the insurer may increase
premiums only based on the terms of the policy.
⩥ What does first dollar coverage mean? Answer: As soon as covered
medical expenses are incurred, the policy begins to pay.
⩥ What is the maximum amount of time the insured has to file legal
action against the insurer after written proof of loss is provided? Answer:
3 years
⩥ What is a MIB report? Answer: medical information on an applicant
for assessing life or health insurance risk
, ⩥ All of the following are TRUE regarding incomplete applications
EXCEPT Answer: the incomplete application can be accepted with the
missing information added later.
⩥ Why are insurance policies considered conditional contracts? Answer:
Certain conditions need to be met to make the contract legally
enforceable.
⩥ When does insurable interest come into play in a life insurance
policy? Answer: when the applicant for the policy is not the insured
⩥ Which type of receipt makes the insurer liable for the risk from the
date of application, regardless of the applicant's insurability? Answer:
binding receipt
⩥ What specific new procedures does the USA Patriot Act require of
insurance companies? Answer: Establish an anti-money laundering
program
⩥ What is the purpose of Stranger-originated life insurance (STOLI)?
Answer: he policy originated primarily or solely for the purpose of
resale.
