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PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE
EXAM| Questions and Answers| Latest Update
Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
- answerBenefits are adjusted to an amount that the premium would have purchased at the correct age or gender. Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as thereafter as is reasonably possible? - answerNotice of claim. When will a policy pay on a UCR basis? - answerWhen particular benefits are not listed on a payment schedule. All of the following are non-forfeiture options EXCEPT - answerCash dividend option. What happens when the lifetime maximum benefit limit has been reached? - answerThe insured will pay all of the remaining medial costs for as long as the policy is in force. Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)? - answerThe producer. What is the waiver of premium provision? - answerIn a long term care contract, the premium is waived after the insured has been confined for a specific period of time. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while? - answerCommitting a misdemeanor
Which is a disadvantage to a flexible premium annuity? - answerThe actual amount of the annuity benefit cannot be determined in advance.
What does first dollar coverage mean? - answerAs soon as covered medical expenses are incurred, the policy begins to pay.
When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial: - answer2 year period All of the following are required signatures on a life insurance application EXCEPT? - answerThe minor in a juvenile policy. What is the purpose of Stranger-originated life insurance (STOLI)? - answerThe policy is originated primarily or solely for the purpose of resale. What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application? - answerThe applicant and possibly the agent initial any changes made. What specific new procedures does the USA Patriot Act require of insurance program? - answerEstablish an anti-money laundering program. Which of the following occurs immediately after the application is submitted and the initial premium paid? - answerThe underwriting process begins. A consumer report used to determine eligibility for insurance may include all of the following EXCEPT? - answerMedical Underwriting exam. Why are insurance policies considered conditional contracts? - answerCertain conditions need to be met to make the contract legally enforceable. When does insurable interest come into play in a life insurance policy? - answerWhen the applicant for the policy is not the insured.
What is a MIB report? - answerMedical information on an applicant for assessing life or health insurance risk. Obtaining consumer information reports under false pretenses is prosecutable by which of the following? - answerFair Credit Reporting Act All of the following are classifications of risk EXCEPT? - answerNon-nicotine Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability? - answerBinding receipt If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT? - answerThe treatment procedures that are covered by the policy. How do warranties differ from representations? - answerA warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge. In noncontributory plans, which percentage of eligible members must participate? - answer100% Managed care plans increase efficiency by all of the following means EXCEPT? - answerTransferring the management of costs to the insureds. All of the following are tax qualified retirement plans EXCEPT? - answerSection 529 plan.
Which of the following is characteristic of a non-qualified plan? - answerPlan does not meet federal guidelines for tax benefits. Under which situation must insurable interest exist between the applicant and insured at the time
Which insurance plans are commonly offered through the work-site (employer sponsored) EXCEPT? - answerMedicare
State generally define a true "Group" for insurance as requiring a minimum of how many participants? - answer Which of the following policy types is considered double indemnity? - answerAccidental death Which of the following is true about a decreasing term life policy? - answerThe face amount reached zero at policy expiration. Which of the following lists the three common types of permanent individual life insurance? - answerVariable Life, Whole Life, Universal Life Which types of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age? - answerRenewable term Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness? - answerDisability income insurance Which of the following is TRUE of an equity-indexed annuity? - answerIt has a guaranteed minimum interest rate. Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? - answerMajor medical insurance. Which of the following is the most common method to supplement Medicare
A basic vision care package includes all of the following EXCEPT? - answerSafety glasses In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses? - answerFlexible Spending Account (FSA) Current assumption whole life policies are sensitive to which of the following? - answerInterest rates A group conversion option may be used in all the following instances EXCEPT? - answerA life-changing event, such as marriage, divorce, or childbirth. Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs? - answerIt is financially insufficient to cover end of life expenses. In a home healthcare benefit, all of the following are eligible expenses EXCEPT? - answerBlood Transfusions Which of the following amends the Social Security Act to make Medicare secondary to group health plans? - answerTEFRA All of the following are requirements to qualify for Social Security disability benefits EXCEPT when - answerUnable to work in occupation on which the worker was trained or educated. How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - answer2 years Which of the following is TRUE for a flexible premium annuity? - answerThe purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.
