PSI Life, Accident, and Health
Exam Questions with Correct
Answers | Complete Study Guide |
Graded A+
• When will a policy pay on a UCR basis? Answer: When particular
benefits are not listed on a payment schedule
• Which type of rider reimburses health and social service expenses
incurred in a convalescent or nursing home facility? Answer: long term
care rider
• Which of the following is exempted from the incontestability provision
in insurance policies? Answer: Fraudulent misstatements
• What does first dollar coverage mean? Answer: As soon as covered
medical expenses are incurred, the policy begins to pay
• What is the waiver of premium provision? Answer: In a long term care
contract, the premium is waived after the insured has been confined for a
specific period of time
,• According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
Answer: for claims involving periodic payments
• Which is a disadvantage to a flexible premium annuity? Answer: the
actual amount of the annuity benefit cannot be determined in advance
• When a policy or certificate containing an accelerated benefit provision
is applied for or delivered, the producer is responsible for providing that
applicant a summary of coverage that includes all of the following
EXCEPT Answer: a detailed and comprehensive summary of the
accelerated benefit
• which one of the following represents an advantage of obtaining a
policy loan versus a withdrawal? Answer: the loan is not taxed while a
withdrawal is taxed for amounts above the contract cost basis
• How does a noncancelable policy differ from a guaranteed renewable
policy? Answer: with the non cancelable policy the insurer may increase
premiums only based on the terms of the policy
• What does it mean if a health policy is conditionally renewable?
Answer: Insurer may elect NOT to renew only under the conditions
specified in the policy
,• When the suicide clause is inserted in a life insurance contract, death
by suicide is not covered during the policy's initial: Answer: 2 year
period
• What does coinsurance mean? Answer: The insurer and the insured
share expenses over the deductible.
• 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 soon thereafter as is reasonably possible? Answer: Notice of claim
• The right to change the beneficiary or dispose of the policy or its
benefits in any manner one chooses is reserved to the policy owner
UNLESS which of the following is true? Answer: The policy owner has
named an irrevocable beneficiary
• Which of the following refers to how often a premium is paid?
Answer: Mode
• All of the following are common exclusions from loss found in
disability income policies EXCEPT for that incurred while Answer:
Committing a misdemeanor
• At which point are contractual death benefit settlement options
determined and by whom are they determined? Answer: At the time the
policy is purchased by the owner of the policy
, • All of the following are ownership rights EXCEPT Answer: Switching
the policy from one insured to another
• All of the following are TRUE regarding incomplete applications
EXCEPT Answer: The incomplete application can be accepted with the
missing information added later
• A consumer report used to determine eligibility for insurance may
include all of the following EXCEPT Answer: Medical underwriting
exam
• All of the following are required signatures on a life insurance
application EXCEPT Answer: The minor in a juvenile policy
• Why are insurance policies considered conditional contracts? Answer:
Certain conditions need to be met to make the contract legally
enforceable.
• When does insurable interest come into play in a life insurance policy?
Answer: when the applicant for the policy is not the insured
• Which of the following occurs immediately after the application is
submitted and the initial premium paid? Answer: the underwriting
process begins
Exam Questions with Correct
Answers | Complete Study Guide |
Graded A+
• When will a policy pay on a UCR basis? Answer: When particular
benefits are not listed on a payment schedule
• Which type of rider reimburses health and social service expenses
incurred in a convalescent or nursing home facility? Answer: long term
care rider
• Which of the following is exempted from the incontestability provision
in insurance policies? Answer: Fraudulent misstatements
• What does first dollar coverage mean? Answer: As soon as covered
medical expenses are incurred, the policy begins to pay
• What is the waiver of premium provision? Answer: In a long term care
contract, the premium is waived after the insured has been confined for a
specific period of time
,• According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
Answer: for claims involving periodic payments
• Which is a disadvantage to a flexible premium annuity? Answer: the
actual amount of the annuity benefit cannot be determined in advance
• When a policy or certificate containing an accelerated benefit provision
is applied for or delivered, the producer is responsible for providing that
applicant a summary of coverage that includes all of the following
EXCEPT Answer: a detailed and comprehensive summary of the
accelerated benefit
• which one of the following represents an advantage of obtaining a
policy loan versus a withdrawal? Answer: the loan is not taxed while a
withdrawal is taxed for amounts above the contract cost basis
• How does a noncancelable policy differ from a guaranteed renewable
policy? Answer: with the non cancelable policy the insurer may increase
premiums only based on the terms of the policy
• What does it mean if a health policy is conditionally renewable?
Answer: Insurer may elect NOT to renew only under the conditions
specified in the policy
,• When the suicide clause is inserted in a life insurance contract, death
by suicide is not covered during the policy's initial: Answer: 2 year
period
• What does coinsurance mean? Answer: The insurer and the insured
share expenses over the deductible.
• 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 soon thereafter as is reasonably possible? Answer: Notice of claim
• The right to change the beneficiary or dispose of the policy or its
benefits in any manner one chooses is reserved to the policy owner
UNLESS which of the following is true? Answer: The policy owner has
named an irrevocable beneficiary
• Which of the following refers to how often a premium is paid?
Answer: Mode
• All of the following are common exclusions from loss found in
disability income policies EXCEPT for that incurred while Answer:
Committing a misdemeanor
• At which point are contractual death benefit settlement options
determined and by whom are they determined? Answer: At the time the
policy is purchased by the owner of the policy
, • All of the following are ownership rights EXCEPT Answer: Switching
the policy from one insured to another
• All of the following are TRUE regarding incomplete applications
EXCEPT Answer: The incomplete application can be accepted with the
missing information added later
• A consumer report used to determine eligibility for insurance may
include all of the following EXCEPT Answer: Medical underwriting
exam
• All of the following are required signatures on a life insurance
application EXCEPT Answer: The minor in a juvenile policy
• Why are insurance policies considered conditional contracts? Answer:
Certain conditions need to be met to make the contract legally
enforceable.
• When does insurable interest come into play in a life insurance policy?
Answer: when the applicant for the policy is not the insured
• Which of the following occurs immediately after the application is
submitted and the initial premium paid? Answer: the underwriting
process begins
