What Is the PSI Exam?
The Professional Services Institute (PSI) exam is a standardized assessment required by many insurance carriers before they can underwrite life, health, or accident policies. The exam evaluates a candidate's knowledge of underwriting guidelines, policy features, and regulatory requirements.
More from this site
Keep reading the latest coverage
Typical Fee Structure
The PSI exam fee is not set by the exam provider itself; instead, it varies by insurer and policy type. Below is a consolidated snapshot of common fee ranges:
| Insurance Type | Fee Range (USD) | Typical Payment Method |
|---|---|---|
| Life Insurance | $75 – $125 | Credit card, ACH, or paper check |
| Health Insurance | $50 – $100 | Credit card, ACH, or paper check |
| Accident Insurance | $40 – $80 | Credit card, ACH, or paper check |
These amounts are averages derived from insurer‑specific fee schedules and may fluctuate with policy limits, applicant profile, and geographic region.
Factors That Influence the Cost
- Policy Coverage Amount: Higher coverage often triggers a higher fee because the insurer's risk exposure is greater.
- Underwriting Complexity: Policies with multiple riders or special endorsements typically cost more to evaluate.
- Insurer Policy: Each carrier sets its own fee based on internal pricing models and administrative costs.
- Payment Timing: Early payment discounts (e.g., 5% off if paid within 10 days) are occasionally offered.
How to Verify Your Specific Fee
Step 1: Contact the Underwriter
Reach out to the underwriting department of the insurer you are applying to. Request the current PSI fee schedule and any applicable discounts.
Step 2: Review Your Application Package
Many insurers include the fee amount on the application confirmation email or in the policy binder under "Exam & Processing Fees."
Step 3: Use Online Resources
Professional associations such as the National Association of Insurance Commissioners (NAIC) publish sample fee tables for reference, though these are generalized.
Payment Options and Tips
Most insurers accept:
- Credit/Debit Card
- Automated Clearing House (ACH) Direct Debit
- Certified or Personal Check
To avoid delays:
- Submit payment immediately after receiving the fee notice.
- Keep a copy of the payment receipt in your applicant file.
- Confirm receipt with the insurer's billing office within 48 hours.
What Happens If the Fee Is Not Paid?
Unpaid PSI fees typically result in:
- Application denial or hold status.
- Loss of any pre‑approved underwriting decisions.
Most carriers will provide a grace period of 7–14 days after the fee is due before taking action.
Common Misconceptions
1. "PSI Fees Are the Same Across All Insurers." They vary widely.
2. "The Fee Is Only for the Exam." It often covers administrative processing as well.
3. "I Can Skip the Exam." The exam is mandatory for all new policy applications under the carrier's guidelines.
Key Takeaways
- Fees range from $40 to $125 depending on coverage type and insurer.
- Payment is usually required before the underwriting decision is finalized.
- Verify your exact fee directly with the insurer to avoid surprises.