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PSI: Life, Accident, and Health Practice
Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the purpose of life insurance?✔✔ To provide financial protection to beneficiaries after the insured’s death
What is the grace period for a monthly premium life insurance policy?✔✔ 31 days
What does the term "beneficiary" mean in a life insurance policy?✔✔ The person who receives the death benefit
What does an accidental death rider provide?✔✔ Additional payout if the insured dies due to an accident
What is the main purpose of a health insurance policy?✔✔ To cover medical expenses
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What type of insurance covers loss of income due to illness or injury?✔✔ Disability income insurance
What is a pre-existing condition in health insurance?✔✔ A medical condition that existed before the policy started
What is the term for the amount paid by the policyholder to keep the insurance active?✔✔ Premium
What is the role of an underwriter in insurance?✔✔ To evaluate risk and determine policy eligibility
What does "insurable interest" mean?✔✔ The policyholder would suffer a financial loss if the insured died
What is the term for the amount the insured must pay before the insurer pays benefits?✔✔ Deductible
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What is a copayment in a health insurance policy?✔✔ A fixed amount the insured pays for covered services
What does a waiver of premium rider do?✔✔ Waives future premiums if the insured becomes disabled
What is the main purpose of a policy’s incontestability clause?✔✔ Prevents the insurer from voiding the policy after a certain period
What is the main feature of a term life policy?✔✔ Provides coverage for a specific period
What does whole life insurance offer that term life does not?✔✔ Cash value accumulation
What is the purpose of the free look period?✔✔ Allows the policyholder to cancel the policy and receive a refund
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