FREE PSI Insurance Exam Questions and Answers

Question 1

What is the main benefit of having an existing policy reinstated as opposed to getting a new one? 1.
No evidence of insurability is necessary 2.
Using original insured issue age 3.
No registration is necessary 4.
Unpaid loans are forgiven

Accepted Answer

First issuance insurance Use of age

Answer

Creating a trust to manage the proceeds

Answer

Health-related insurance

Answer

Fraudulent misstatements

Question 2

Which of the following applies most frequently to term life insurance?

Accepted Answer

It starts with little to no insurance coverage.

Answer

It serves as insurance for mortgage credit.

Answer

Over time, the fee goes up.

Answer

Over time, insurance coverage gets less and less.

Question 3

Which of the following is taken into account when courts examine a contract to ascertain the parties' intentions? 1. the whole contract; 2. the pertinent sections of the deal; 3. any additions to the main contract; and 4. any words with unclear definitions

Accepted Answer

The entire contract

Answer

The underwriting process begins

Answer

Any exclusions

Answer

Reinstatement.

Question 4

Which key distinction between individual and group health insurance exists?

Accepted Answer

Evidence of insurability is necessary for individual insurance

Answer

Evidence of insurability is required for group insurance

Answer

A lower unfavorable selection rate is typical for group insurance

Answer

An eligibility term is part of individual insurance

Question 5

Which of the following requires a covered employee to consent to a pay cut so that the money can be used to pay for medical costs?

Accepted Answer

Flexible Spending Account (FSA)

Answer

Consumer Driven Health Plan (CDHP)

Answer

Healthcare Savings Account (HSA)

Answer

Health Reimbursement Account (HRA)

Question 6

Which of the following statements about irrevocable beneficiaries' assignment rights is TRUE?

Accepted Answer

Based on the expected proceeds, they have a higher chance of getting a loan. After a life-changing event, they can be altered without the beneficiary's permission.

Answer

Based on the anticipated proceeds, they have a LESS probable chance of being approved for a loan.

Answer

When the policyholder doesn't pay, they are in charge of paying the premium.

Question 7

Which of the following in a disability income policy may be viewed as a time deduction rather than a money deduction because benefits are not payable during that time? 1. The phase of eviction 2. The trial period 3. The benefit time frame 4. The grace interval

Accepted Answer

Elimination period

Answer

Representations

Answer

Plan does not comply with federal tax benefit requirements.

Answer

State law

Question 8

There is an annual dollar limit for tax deductions on a long-term care policy for an individual. This limit is based on which of the following?

Accepted Answer

age

Answer

cost of care

Answer

premium cost

Answer

policy value

Question 9

Which three permanent individual life insurance types are most common?

Accepted Answer

Variable Life, Whole Life, Universal Life

Answer

Universal Life, AD&D, Term Life

Answer

Group Life, Whole Life, Variable Life

Answer

Whole Life, Incidental Life, Term Life

Question 10

Which clause in an insurance policy offers the assurance that losses covered by the policy will be paid in exchange for the insured's premium and adherence to the terms of the policy?

Accepted Answer

insuring clause

Answer

definitions

Answer

conditions

Answer

policy title page

What is the main benefit of having an existing policy reinstated as opposed to getting a new one? 1.No evidence of insurability is necessary 2.Using original insured issue age 3.No registration is necessary 4.Unpaid loans are forgiven

What is the main benefit of having an existing policy reinstated as opposed to getting a new one? 1.
No evidence of insurability is necessary 2.
Using original insured issue age 3.
No registration is necessary 4.
Unpaid loans are forgiven