PSI LIFE INSURANCE PRACTICE REAL
EXAM 2026 TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
⩥ 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? Answer: Joint and survivorship
option
⩥ In which of the following must a beneficiary change request be filed
in writing to the insurer and is made effective by the insurance company
recording the change in its records? Answer: recording method
⩥ What is the order in which beneficiaries receive proceeds from a life
insurance policy? Answer: succession of beneficiaries
⩥ Which part of an insurance contract contains the promise to pay losses
covered by the policy in exchange for the insured's premium and
compliance with policy terms? Answer: insuring clause
⩥ Which of the following is exempted from the incontestability
provision in insurance policies? Answer: fraudulent misstatements
, ⩥ What is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? Answer: insured original age is
used
⩥ All of the following are ownership rights EXCEPT Answer: switching
the policy from one insured to another
⩥ Which is a common approach to addressing the problems inherent in
naming a minor as a beneficiary to a life insurance policy? Answer:
establishing a trust to administer proceeds
⩥ In which of the following must a beneficiary change request be filed
in writing to the insurer and is made effective by the insurance company
recording the change in its records? Answer: recording method
⩥ Which part of an insurance contract contains the promise to pay losses
covered by the policy in exchange for the insured's premium and
compliance with policy terms? Answer: insuring clause
⩥ Which is a common approach to addressing the problems inherent in
naming a minor as a beneficiary to a life insurance policy? Answer:
establishing a trust to administer proceeds
EXAM 2026 TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
⩥ 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? Answer: Joint and survivorship
option
⩥ In which of the following must a beneficiary change request be filed
in writing to the insurer and is made effective by the insurance company
recording the change in its records? Answer: recording method
⩥ What is the order in which beneficiaries receive proceeds from a life
insurance policy? Answer: succession of beneficiaries
⩥ Which part of an insurance contract contains the promise to pay losses
covered by the policy in exchange for the insured's premium and
compliance with policy terms? Answer: insuring clause
⩥ Which of the following is exempted from the incontestability
provision in insurance policies? Answer: fraudulent misstatements
, ⩥ What is the primary advantage for obtaining a reinstatement of a
policy rather than obtaining a new one? Answer: insured original age is
used
⩥ All of the following are ownership rights EXCEPT Answer: switching
the policy from one insured to another
⩥ Which is a common approach to addressing the problems inherent in
naming a minor as a beneficiary to a life insurance policy? Answer:
establishing a trust to administer proceeds
⩥ In which of the following must a beneficiary change request be filed
in writing to the insurer and is made effective by the insurance company
recording the change in its records? Answer: recording method
⩥ Which part of an insurance contract contains the promise to pay losses
covered by the policy in exchange for the insured's premium and
compliance with policy terms? Answer: insuring clause
⩥ Which is a common approach to addressing the problems inherent in
naming a minor as a beneficiary to a life insurance policy? Answer:
establishing a trust to administer proceeds
