PSI FINAL EXAM 2024 WFULL QS ANSWERS EXAM

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QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 46. Which annuity benefit payment option is characterized as providing lifetime Income to the annuitant, ceasing all payments upon death of the annuitant, and paying the largest monthly income of all options?

• Annuity certain
• Pure life Income
• Life with period certain
• Joint and survivorship

Answer:

• Pure life Income

Question 2: 83. Backdating on a life insurance policy is the practice of

• reinstating a lapsed policy
• making the policy effective on a later date than the present
• making the policy effective on an earlier date than the present.
• accepting the premium after the expiration of the grace period.

Answer:

• making the policy effective on an earlier date than the present.

Question 3: 60. Which of the following is a common exclusion from coverage?

• Injury due to auto accidents.
• Injury due to recreational sports.
• Injury due to an act of war or civil disorder.
• Injury caused by repairs or renovations to one's own home.

Answer:

• Injury due to an act of war or civil disorder.

Question 4: 23. A life insurance policy has lapsed due to nonpayment of premiums. To activate the reinstatement clause in the policy, the insured MUST

• pay the premium within 15 days of the grace period.
• provide the Insurer with evidence of Insurability.
• apply for a new life Insurance policy
• demonstrate the incontestable clause can be invoked.

Answer:

• provide the Insurer with evidence of Insurability.

**The owner must pay late premiums from the date of lapse, PLUS interest.** **

Evidence of Insurability:

To reinstate the policy, the insured (the person covered by the policy) must provide proof of their current health status. This helps the insurer assess the risk of reinstating the policy.** Question 5: 27. Bettie has a $200,000 whole-life policy with a $50,000 cash value. She wishes to borrow $30,000 for the purchase of a new van. Which of the following is TRUE In this situation?

• If the loan is not repaid. the net death benefit will be reduced.
• Loans can only be taken for hardship situations.
• Whole-life policies do not have any loan provisions.
• This type of loan is interest-free.

Answer:

• If the loan is not repaid. the net death benefit will be reduced.

Question 6: 19. What is the focus of major medical Insurance?

• Providing preventive care.
• Reducing costs by using In-network facilities.
• Providing coverage for hospitalization expenses.
• Providing care to low-income families.

Answer:

• Providing coverage for hospitalization expenses.

Question 7: 15. The Louisiana Code prohibits all of the following practices EXCEPT:

• Misrepresentation and false advertising
• Discrimination among persons with different risks
• False statements about the financial condition of an insurer
• Boycott that results in restraint of trade in the insurance business

Answer:

• Boycott that results in restraint of trade in the insurance business

Question 8: 66. Which of the following clauses states that insurers are totally disabled when they cannot perform the major duties of their regular occupation?

• proof of loss clause
• any occupation clause
• own occupation clause
• regular occupation clause

Answer:

• own occupation clause

Question 9: 70. A waiver of premium rider found in a life insurance contract requires the Insured's disability to be

• partial and permanent
• total and permanent.
• partial and temporary
• total and temporary

Answer:

• total and permanent.

Question 10: 61. What long-term care insurance provision covers health care provided In an individual's residence and must begin within a certain time frame following a nursing home stay?

• Adult day care.
• Respite care.
• Assisted living healthcare
• Home health care

Answer:

• Home health care

Question 11: 93. Which term describes an insurer operating in the state in which it is Incorporated?

• domestic
• foreign
• participating
• resident

Answer:

• domestic