CA PSI SITE - LIFE, ACCIDENT
AND HEALTH AGENT
EXAMINATION (LIFE AGENT)
In the insurance business, risk can best be defined as
A. Sharing the possibility of a loss
B. Uncertainty regarding the future
C. Uncertainty regarding financial loss
D. Uncertainty regarding when death will occur - ANSWERS-C
Tom buys his wife Mary a $50,000 diamond ring. When she is not
wearing the ring, she keeps it in a safe deposit box at a local bank.
This is an example of risk
A. Avoidance
B. Reduction
C. Retention
D. Transference - ANSWERS-B
What is required when an applicant reveals conditions that require
more information?
,A. Physical examination
B. Attending physician's statement
C. Investigative consumer report
D. Agent's report - ANSWERS-A
Which of the following statements defines partial disability ?
A. A disabled employee while he is working part-time and receiving
lost income under their long-term disability benefit
B. An employee who loses sight in one eye because of an accident on
the job
C. An employer contributing half of the disability benefit to an
employee out on long-term disability
D. The prorated income an employer pays an injured employee out
on short-term disability - ANSWERS-A
A supplemental insurance policy that pays a set amount for each day
that an individual is hospitalized is known as:
A. Long term care supplement
B. Temporary major medical
C. Hospital confinement indemnity
D. Hospital surgical expense - ANSWERS-C
,Which settlement option allows only the death benefit earnings to be
paid to the beneficiary ?
A. Cash option
B. Fixed amount option
C. Interest option
D. Fixed period option - ANSWERS-A
Which statement is true regarding participating in a group health
insurance plan?
A. A minimum of 75% of eligible members is required for a non-
contributory group health plan
B. A non-contributory group health plan must cover all eligible
members
C. A contributory group health plan must cover all eligible members
D. A minimum participation of 50% of eligible members is required
for a contributory group health plan - ANSWERS-B
According to state law, what size print must be used for the licensee's
license number on all price quotes, business cards, and printed
material?
A. There are no requirements for the license no. to be printed on any
printed material
B. Larger print than any other printed information on the material
, C. The same size print as the licensee's phone number, fax number or
address
D. Small print a the bottom of the material - ANSWERS-C
Which non-forfeiture option uses cash surrender values to purchase
paid-up term insurance for the full face amount of the policy?
A. Extended paid-up insurance
B. Reduced term insurance
C. Extended term insurance
D. Reduced paid-up insurance - ANSWERS-C
All of the following statements about the gatekeeper system are true,
except:
A. Specialists can choose to be gatekeepers for their patients
B. The insured must utilize their primary physicians who authorize
all care for the insured
C. Referrals to specialists must be authorized by the gatekeeper
D. Gatekeepers are a common feature of HMO plans - ANSWERS-B
Traditional comprehensive major medical plans include all of the
following, except:
A. Deductibles
AND HEALTH AGENT
EXAMINATION (LIFE AGENT)
In the insurance business, risk can best be defined as
A. Sharing the possibility of a loss
B. Uncertainty regarding the future
C. Uncertainty regarding financial loss
D. Uncertainty regarding when death will occur - ANSWERS-C
Tom buys his wife Mary a $50,000 diamond ring. When she is not
wearing the ring, she keeps it in a safe deposit box at a local bank.
This is an example of risk
A. Avoidance
B. Reduction
C. Retention
D. Transference - ANSWERS-B
What is required when an applicant reveals conditions that require
more information?
,A. Physical examination
B. Attending physician's statement
C. Investigative consumer report
D. Agent's report - ANSWERS-A
Which of the following statements defines partial disability ?
A. A disabled employee while he is working part-time and receiving
lost income under their long-term disability benefit
B. An employee who loses sight in one eye because of an accident on
the job
C. An employer contributing half of the disability benefit to an
employee out on long-term disability
D. The prorated income an employer pays an injured employee out
on short-term disability - ANSWERS-A
A supplemental insurance policy that pays a set amount for each day
that an individual is hospitalized is known as:
A. Long term care supplement
B. Temporary major medical
C. Hospital confinement indemnity
D. Hospital surgical expense - ANSWERS-C
,Which settlement option allows only the death benefit earnings to be
paid to the beneficiary ?
A. Cash option
B. Fixed amount option
C. Interest option
D. Fixed period option - ANSWERS-A
Which statement is true regarding participating in a group health
insurance plan?
A. A minimum of 75% of eligible members is required for a non-
contributory group health plan
B. A non-contributory group health plan must cover all eligible
members
C. A contributory group health plan must cover all eligible members
D. A minimum participation of 50% of eligible members is required
for a contributory group health plan - ANSWERS-B
According to state law, what size print must be used for the licensee's
license number on all price quotes, business cards, and printed
material?
A. There are no requirements for the license no. to be printed on any
printed material
B. Larger print than any other printed information on the material
, C. The same size print as the licensee's phone number, fax number or
address
D. Small print a the bottom of the material - ANSWERS-C
Which non-forfeiture option uses cash surrender values to purchase
paid-up term insurance for the full face amount of the policy?
A. Extended paid-up insurance
B. Reduced term insurance
C. Extended term insurance
D. Reduced paid-up insurance - ANSWERS-C
All of the following statements about the gatekeeper system are true,
except:
A. Specialists can choose to be gatekeepers for their patients
B. The insured must utilize their primary physicians who authorize
all care for the insured
C. Referrals to specialists must be authorized by the gatekeeper
D. Gatekeepers are a common feature of HMO plans - ANSWERS-B
Traditional comprehensive major medical plans include all of the
following, except:
A. Deductibles
