PSI LIFE, ACCIDENT, HEALTH PRACTICE EXAM
TEST BANK 2026: 200+ QUESTIONS AND 100%
VERIFIED ANSWERS | GRADED A+ |
GUARANTEED PASS!!
The benefits pay for 2 years, starting from the date of the injury, What is this
time period called? - ANSWER//Benefit period Under a Modified Endowment
Contract, what are the likely tax consequences? - Intrest on loans is tax
deductible - Premium payments are tax deductible - Pre- death distributions
will become taxable - Cash values cannot be surrendered early -
ANSWER//Pre- death distortions will become taxable Which of the following is
considered to be a point of service (POS) Plan _ preferred provider org -
managed care plan - Protected care provider - Restricted provider org -
ANSWER//Managed care plan - Managed care plans are health insurance
plans with the goal of managing two major aspects of healthcare: cost and
quality. With these plans, the insurer signs contracts with certain health care
providers and facilities to provide care for their members at a reduced cost. A
point-of-service plan (POS) is a type of managed-care health insurance plan
that provides different benefits depending on whether the policyholder uses
in-network or out-of-network health care providers The automatic premium
loan provision authorizes an insurer to withdraw from a policy cash value the
amount of - Any interest payable from an outstanding policy balance - Past
due premiums that have not been paid by the end of the grace period - The
outstanding policy loan balance - Any surrender charges owed by the policy
owner - ANSWER//Past due premiums that have not been paid by the end of
the grace period Justin is receiving disability income benefits from a group
policy paid for by his employer. How are these benefits treated for tax
purposes? - Partially taxable income - Non taxable income - Taxable income -
Conditionally taxable income - ANSWER//Taxable income A Roth IRA owner
must be at least what age in order to make tax-free withdrawals - 59 1/2 and
owned account for a minimum of 10 years - 59 1/2 and owned account for a
minimum of 5 years -70 1/2 and owned account for 10 years - ANSWER//59
1/2 and owned account for a minimum of 5 years A disability elimination
period is best described as - Time deductible - dollar deductible - Eligibility
period - Probation period - ANSWER//Time deductible For long-term disability
insurance, the elimination period is like a time-based deductible: It's the
waiting period before benefits begin, starting the day you become ill or injured.
The typical elimination period is 90 days. You can alter the cost of your policy
by changing its elimination period A group disbablity income plan that pays
tax free benefits to covered employer is considered - Non-contributory -
Partially contributory - Group Contributory - Fully contributory -
ANSWER//Fully contributory The taxable portion of each annuity payment is
calculated using which method - Exclusion ratio - Taxable ratio - Cost basis -
Tax basis - ANSWER//Exclusion ratio New York Disability benefits Law
provides cash payments to workers unable to work because of. Injury or
illness that occurred on the job - Injuries only that occurred off the job -
Illnesses only that occurred on the job - Non work related injuries or illnesses -
ANSWER//Injury or illness that occurred on the job Level premium permanent
,insurance accumulates a reserve that will eventually equal the face amount of
the policy pay a dividend to the policyowner require the policyowner to make
periodic withdrawals become larger than the face amount - ANSWER//Equal
the face amount of the policy Written notice for a health claim must be given
to the insurer ___ days after the occurrence of the loss. 10 -20 -31 -60 -
ANSWER//20 Naming a contingent beneficiary as "all surviving children" is
described by which term? Contingent designation Primary designation Class
designation Tertiary designation - ANSWER//Class designation Which type of
plan would be most appropriate for an individual on medicare and is
concerned that deicer will NOT pay for charges exceeding the approved
amount - Medicaid - Long term care -Medicare supplemnet Plan F -
Comprehensive major medical - ANSWER//Medicare supplement Plan F
Medicare supplement plans F and G are the only medicare supplement
insurance plans that cover costs as medicare part B excess charges. An
excess charge is the difference between what a doctor or provider charges
and the amount medicare will pay. Which of the following is required for the
renewal of an agents insurance license - Pass an examination - College
credits - Continuing education - Prelicensing education -
ANSWER//Continuing education - Complete a 15 hour education course and
pay renewal fee to get renewal. The waiting period for a disablity insurance
policy - Excludes payments for a short term illness or injury - IS the period of
time that must elapse following the effective date of the police before benefits
are payable - Helps the insurer determine if the claim is legitimate - Allows the
insurer to collect medical information on the policy owner -
ANSWER//Excludes payments for a short term illness or injury Which type of
annuity guarantees a stated number of income payments, whether or not the
annuitant is still alive to receive them? - Life annuity certain - Secure life
annuity - Irrevocable survivor annuity - Guaranteed life annuity -
ANSWER//Life annuity certain In New York a long term care policy must be
_____renewable _ Contingenlty - Conditionally - Guaranteed - Optionally -
ANSWER//Guaranteed Peter has a policy where 80% to 90% of the premium
is invested in traditional fixed income securities and the remainder of the
premium is invested in contracts tied to a stipulated stock index. What kind of
policy is this? Modified Endowment Contract Current assumptive whole life
Credit life insurance Equity index whole life - ANSWER//Equity index whole
life Craig submits a $500 claim for medical expenses. With a past due
premium of $100, the insurer pays $400. Which of the Uniform Optional
Provisions covers this situation? - Payment of claims - Legal Actions - Unpaid
premium - Time of payment claims - ANSWER//Unpaid premium Written
notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. - 20 -30 -45 -60 - ANSWER//20 Mark continues
working after the age of 65 and is covered through his employer's group
health plan. Which of the following statements is TRUE? Hes not eligble for
medicare His group health plan and medicare pay 50/50 Medicare is the
secondary payer - Medicare is he primary payer - ANSWER//Medicare is the
secondary payer How much does medicare part B pay for physician fees -40
60 80 100 - ANSWER//80% Generally speaking which three levels of care are
long term care polices provided with - Diablity, acute care, hospitalization -
Accident, medical care and rehab - Physcholgical, acute care, assisted living -
Skilled nursing, intermediate and custodial care - ANSWER//Skilled nursing,
,intermediate and custodial care Which of these factors help determine an
insureds life isurance policy. - Insureds salary - Marital status - Place of
residence - Avocation (hobby) - ANSWER//Avocation (hobby) Bill requires
some nursing care and supervision but NOT full-time care. Which of these
nursing home options would best serve him? Nursing home Assisted living
Congregate housing Custodial residence - ANSWER//Assisted living Which of
these is NOT subject to income taxation under a modified endowment
contract (MEC) - Loan against the cash value - Policy withdrawal - Policy
dividend - Death benefit - ANSWER//Death benefit A medical provider that
accepts medicare assignment must - Accept payment based upon a defined
medicare schudelue and bill the insured for any difference - Accept payment
based upon a defined medicare schudleue and negotiate any excess fees -
Accept payment based upon a defined medicare schudleue and bill no more
than 15% of the excess charges - Accept payment based upon a defined
medicare schedule as payment in full. - ANSWER//Accept payment based
upon a defined medicare schedule as payment in full. An indemnity plan
limitation that will pay the dental bills after a small amount is paid by the
insured is called - A managed plan - Stop loss - Coinsurance - A deductible -
ANSWER//Coinsurance According the the affordable care act (ACA) of 2010,
what is the maximum allowable time from the date of service that a claim can
be submitted to Medicare? - ANSWER//12 months What's an HMO? -
ANSWER//An HMO gives you access to certain doctors and hospitals within
its network. A network is made up of providers that have agreed to lower their
rates for plan members and also meet quality standards. But unlike PPO
plans, care under an HMO plan is covered only if you see a provider within
that HMO's network. Health maintenance organization Federal Employees
Health Benefits Program (FEHBP) Indian Health Service (IHS) Medicaid /
State Health Insurance Assistance Program (SHIP) Medicare. Prescription
Assistance (SPAP) Military Health System (MHS) / Tricare. Children's Health
Insurance Program (CHIP) Program of All-Inclusive Care for the Elderly
(PACE) An insured has a stop loss limit of 5,000 a deductible of $500 and a
80/20 coinsurance. The insured insures 25,000 covered losses. How much
will the insured have to pay? - ANSWER//5,000 The clause that allows an
insurer the right to terminate coverage at any anniversary date is called an -
Conditionally renewability clause - Optional Renewability clause - Selective
renewability clause - Cancelable Clause - ANSWER//Optional renewability
clause A health insurance policy where. the insured has the right to terminate
the policy for reasons other than the insureds health is called - Limited
renewable - Conditionally Renewable - Guaranteed renewable - Conditionally
Cancelable - ANSWER//Conditionally Renewable Which type of long term
care benefit would be most appropriate for a stroke victim who requires
speech therapy administered at her home - Respite Care -Continuing care -
Home Health Care - Custodial Care - ANSWER//Respite Care Which of the
following provides affordable health insurance coverage to small employers -
New York Small Business Association - Healthy New York Program -
Medicare - New York Health Department - ANSWER//Healthy New York
Program A Hospital or medical expense policy will typically cover dental
treatment expenses under which circumstance - After the annual limit of
dental policy's coverage is reached - Dental treatment is needed to repair an
injury - Cosmetic dental treatment is preformed - If treatment is preformed at a
, in network provider. - ANSWER//Dental treatment is needed to repair an injury
What is the contract called that is issued to an employer for a group medical
insurance plan ? - Master policy - Certificate of coverage - Provisional policy -
Document of coverage - ANSWER//Master policy A long term care policy
typically provides all of the following levels of care EXECPT - Skilled care -
Intermediate care - acute care - Custodial care - ANSWER//Acute Care Acute
care is a branch of secondary health care where a patient receives active but
short-term treatment for a severe injury or episode of illness, an urgent
medical condition, or during recovery from surgery. In medical terms, care for
acute health conditions is the opposite from chronic care, or longer term care
A medicare supplant policy must NOT contain benefits which - Charge
additional premiums - Duplicate medicare benefits - Cover more than
medicare coverage - Are covered by worker's compensation -
ANSWER//Duplicate medicare benefits Which type of rider will waive the
premium on a child's life insurance policy if the parent paying the premium
dies? - Waiver of premium - Juvenile waiver - Guaranteed insurability - Payor
Benefit - ANSWER//Payor benefit Which of these is a method of determine
the level of funds required for ongoing support in the event of the
breadwinners death - Financial loss value - Human Life Value - Assessment
value - Replacement value - ANSWER//Human life value A limited payment
whole life policy provides - Protection for 20 years - Lifetime protection -
Protection for more than one person - Discounted premiums -
ANSWER//Lifetime protection Kate has a Major Medical Plan with a 75/25
coinsurance and a deductible of $25. How much will she have to pay if she,
not having met any of her deductible, visits the doctor and receives a bill for
$125? - 25 - 50 -75 -100 - ANSWER//50 Which of these is NOT considered to
be a risk factor in life insurance underwriting - Number of kids - Health History
- Hobbies - Occupation - ANSWER//# of kids A master contract and certificate
of coverage can be found in which type of policy? -Long term -Medicaid -
Group - Medicare - ANSWER//Group A guaranteed issue insurance policy as
no - Initial premium requirement - Incontestable period - Waiting period -
Medical underwriting - ANSWER//- Medical underwriting Guaranteed issue
insurance - That means regardless of your health, you cannot be declined or
turned down. However, guaranteed issue life insurance generally offers low
death benefit options with higher than normal premiums. What types of life
insurance are normally used for key employee indemnification? - Term, whole
and universal life insurance - Increasing term insurance - Joint, credit, and
group life insurance - Adjustable, permeant and limited pay life insurance -
ANSWER//- Term, whole and universal life insurance Key employee
indemnification- this is an insurance policy purchased by a business to
compensate that business for financial losses that would arise from the death
or long-term disability of important company employees What is the
nonforfeiture value of an annuity before annuitization? -All premiums paid - All
premiums paid plus interest - All premiums paid minus any withdrawals and
surrender charges - All premiums paid, plus interest, minus any withdrawals
and surrender charges. - ANSWER//All premiums paid, plus interest, minus
any withdrawals and surrender charges. Annuitization is the process of
converting an annuity investment into a series of periodic income payments.
Annuities may be annuitized for a specific period or for the life of the
annuitant. ... Annuitants can arrange for beneficiaries to receive a portion of
TEST BANK 2026: 200+ QUESTIONS AND 100%
VERIFIED ANSWERS | GRADED A+ |
GUARANTEED PASS!!
The benefits pay for 2 years, starting from the date of the injury, What is this
time period called? - ANSWER//Benefit period Under a Modified Endowment
Contract, what are the likely tax consequences? - Intrest on loans is tax
deductible - Premium payments are tax deductible - Pre- death distributions
will become taxable - Cash values cannot be surrendered early -
ANSWER//Pre- death distortions will become taxable Which of the following is
considered to be a point of service (POS) Plan _ preferred provider org -
managed care plan - Protected care provider - Restricted provider org -
ANSWER//Managed care plan - Managed care plans are health insurance
plans with the goal of managing two major aspects of healthcare: cost and
quality. With these plans, the insurer signs contracts with certain health care
providers and facilities to provide care for their members at a reduced cost. A
point-of-service plan (POS) is a type of managed-care health insurance plan
that provides different benefits depending on whether the policyholder uses
in-network or out-of-network health care providers The automatic premium
loan provision authorizes an insurer to withdraw from a policy cash value the
amount of - Any interest payable from an outstanding policy balance - Past
due premiums that have not been paid by the end of the grace period - The
outstanding policy loan balance - Any surrender charges owed by the policy
owner - ANSWER//Past due premiums that have not been paid by the end of
the grace period Justin is receiving disability income benefits from a group
policy paid for by his employer. How are these benefits treated for tax
purposes? - Partially taxable income - Non taxable income - Taxable income -
Conditionally taxable income - ANSWER//Taxable income A Roth IRA owner
must be at least what age in order to make tax-free withdrawals - 59 1/2 and
owned account for a minimum of 10 years - 59 1/2 and owned account for a
minimum of 5 years -70 1/2 and owned account for 10 years - ANSWER//59
1/2 and owned account for a minimum of 5 years A disability elimination
period is best described as - Time deductible - dollar deductible - Eligibility
period - Probation period - ANSWER//Time deductible For long-term disability
insurance, the elimination period is like a time-based deductible: It's the
waiting period before benefits begin, starting the day you become ill or injured.
The typical elimination period is 90 days. You can alter the cost of your policy
by changing its elimination period A group disbablity income plan that pays
tax free benefits to covered employer is considered - Non-contributory -
Partially contributory - Group Contributory - Fully contributory -
ANSWER//Fully contributory The taxable portion of each annuity payment is
calculated using which method - Exclusion ratio - Taxable ratio - Cost basis -
Tax basis - ANSWER//Exclusion ratio New York Disability benefits Law
provides cash payments to workers unable to work because of. Injury or
illness that occurred on the job - Injuries only that occurred off the job -
Illnesses only that occurred on the job - Non work related injuries or illnesses -
ANSWER//Injury or illness that occurred on the job Level premium permanent
,insurance accumulates a reserve that will eventually equal the face amount of
the policy pay a dividend to the policyowner require the policyowner to make
periodic withdrawals become larger than the face amount - ANSWER//Equal
the face amount of the policy Written notice for a health claim must be given
to the insurer ___ days after the occurrence of the loss. 10 -20 -31 -60 -
ANSWER//20 Naming a contingent beneficiary as "all surviving children" is
described by which term? Contingent designation Primary designation Class
designation Tertiary designation - ANSWER//Class designation Which type of
plan would be most appropriate for an individual on medicare and is
concerned that deicer will NOT pay for charges exceeding the approved
amount - Medicaid - Long term care -Medicare supplemnet Plan F -
Comprehensive major medical - ANSWER//Medicare supplement Plan F
Medicare supplement plans F and G are the only medicare supplement
insurance plans that cover costs as medicare part B excess charges. An
excess charge is the difference between what a doctor or provider charges
and the amount medicare will pay. Which of the following is required for the
renewal of an agents insurance license - Pass an examination - College
credits - Continuing education - Prelicensing education -
ANSWER//Continuing education - Complete a 15 hour education course and
pay renewal fee to get renewal. The waiting period for a disablity insurance
policy - Excludes payments for a short term illness or injury - IS the period of
time that must elapse following the effective date of the police before benefits
are payable - Helps the insurer determine if the claim is legitimate - Allows the
insurer to collect medical information on the policy owner -
ANSWER//Excludes payments for a short term illness or injury Which type of
annuity guarantees a stated number of income payments, whether or not the
annuitant is still alive to receive them? - Life annuity certain - Secure life
annuity - Irrevocable survivor annuity - Guaranteed life annuity -
ANSWER//Life annuity certain In New York a long term care policy must be
_____renewable _ Contingenlty - Conditionally - Guaranteed - Optionally -
ANSWER//Guaranteed Peter has a policy where 80% to 90% of the premium
is invested in traditional fixed income securities and the remainder of the
premium is invested in contracts tied to a stipulated stock index. What kind of
policy is this? Modified Endowment Contract Current assumptive whole life
Credit life insurance Equity index whole life - ANSWER//Equity index whole
life Craig submits a $500 claim for medical expenses. With a past due
premium of $100, the insurer pays $400. Which of the Uniform Optional
Provisions covers this situation? - Payment of claims - Legal Actions - Unpaid
premium - Time of payment claims - ANSWER//Unpaid premium Written
notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. - 20 -30 -45 -60 - ANSWER//20 Mark continues
working after the age of 65 and is covered through his employer's group
health plan. Which of the following statements is TRUE? Hes not eligble for
medicare His group health plan and medicare pay 50/50 Medicare is the
secondary payer - Medicare is he primary payer - ANSWER//Medicare is the
secondary payer How much does medicare part B pay for physician fees -40
60 80 100 - ANSWER//80% Generally speaking which three levels of care are
long term care polices provided with - Diablity, acute care, hospitalization -
Accident, medical care and rehab - Physcholgical, acute care, assisted living -
Skilled nursing, intermediate and custodial care - ANSWER//Skilled nursing,
,intermediate and custodial care Which of these factors help determine an
insureds life isurance policy. - Insureds salary - Marital status - Place of
residence - Avocation (hobby) - ANSWER//Avocation (hobby) Bill requires
some nursing care and supervision but NOT full-time care. Which of these
nursing home options would best serve him? Nursing home Assisted living
Congregate housing Custodial residence - ANSWER//Assisted living Which of
these is NOT subject to income taxation under a modified endowment
contract (MEC) - Loan against the cash value - Policy withdrawal - Policy
dividend - Death benefit - ANSWER//Death benefit A medical provider that
accepts medicare assignment must - Accept payment based upon a defined
medicare schudelue and bill the insured for any difference - Accept payment
based upon a defined medicare schudleue and negotiate any excess fees -
Accept payment based upon a defined medicare schudleue and bill no more
than 15% of the excess charges - Accept payment based upon a defined
medicare schedule as payment in full. - ANSWER//Accept payment based
upon a defined medicare schedule as payment in full. An indemnity plan
limitation that will pay the dental bills after a small amount is paid by the
insured is called - A managed plan - Stop loss - Coinsurance - A deductible -
ANSWER//Coinsurance According the the affordable care act (ACA) of 2010,
what is the maximum allowable time from the date of service that a claim can
be submitted to Medicare? - ANSWER//12 months What's an HMO? -
ANSWER//An HMO gives you access to certain doctors and hospitals within
its network. A network is made up of providers that have agreed to lower their
rates for plan members and also meet quality standards. But unlike PPO
plans, care under an HMO plan is covered only if you see a provider within
that HMO's network. Health maintenance organization Federal Employees
Health Benefits Program (FEHBP) Indian Health Service (IHS) Medicaid /
State Health Insurance Assistance Program (SHIP) Medicare. Prescription
Assistance (SPAP) Military Health System (MHS) / Tricare. Children's Health
Insurance Program (CHIP) Program of All-Inclusive Care for the Elderly
(PACE) An insured has a stop loss limit of 5,000 a deductible of $500 and a
80/20 coinsurance. The insured insures 25,000 covered losses. How much
will the insured have to pay? - ANSWER//5,000 The clause that allows an
insurer the right to terminate coverage at any anniversary date is called an -
Conditionally renewability clause - Optional Renewability clause - Selective
renewability clause - Cancelable Clause - ANSWER//Optional renewability
clause A health insurance policy where. the insured has the right to terminate
the policy for reasons other than the insureds health is called - Limited
renewable - Conditionally Renewable - Guaranteed renewable - Conditionally
Cancelable - ANSWER//Conditionally Renewable Which type of long term
care benefit would be most appropriate for a stroke victim who requires
speech therapy administered at her home - Respite Care -Continuing care -
Home Health Care - Custodial Care - ANSWER//Respite Care Which of the
following provides affordable health insurance coverage to small employers -
New York Small Business Association - Healthy New York Program -
Medicare - New York Health Department - ANSWER//Healthy New York
Program A Hospital or medical expense policy will typically cover dental
treatment expenses under which circumstance - After the annual limit of
dental policy's coverage is reached - Dental treatment is needed to repair an
injury - Cosmetic dental treatment is preformed - If treatment is preformed at a
, in network provider. - ANSWER//Dental treatment is needed to repair an injury
What is the contract called that is issued to an employer for a group medical
insurance plan ? - Master policy - Certificate of coverage - Provisional policy -
Document of coverage - ANSWER//Master policy A long term care policy
typically provides all of the following levels of care EXECPT - Skilled care -
Intermediate care - acute care - Custodial care - ANSWER//Acute Care Acute
care is a branch of secondary health care where a patient receives active but
short-term treatment for a severe injury or episode of illness, an urgent
medical condition, or during recovery from surgery. In medical terms, care for
acute health conditions is the opposite from chronic care, or longer term care
A medicare supplant policy must NOT contain benefits which - Charge
additional premiums - Duplicate medicare benefits - Cover more than
medicare coverage - Are covered by worker's compensation -
ANSWER//Duplicate medicare benefits Which type of rider will waive the
premium on a child's life insurance policy if the parent paying the premium
dies? - Waiver of premium - Juvenile waiver - Guaranteed insurability - Payor
Benefit - ANSWER//Payor benefit Which of these is a method of determine
the level of funds required for ongoing support in the event of the
breadwinners death - Financial loss value - Human Life Value - Assessment
value - Replacement value - ANSWER//Human life value A limited payment
whole life policy provides - Protection for 20 years - Lifetime protection -
Protection for more than one person - Discounted premiums -
ANSWER//Lifetime protection Kate has a Major Medical Plan with a 75/25
coinsurance and a deductible of $25. How much will she have to pay if she,
not having met any of her deductible, visits the doctor and receives a bill for
$125? - 25 - 50 -75 -100 - ANSWER//50 Which of these is NOT considered to
be a risk factor in life insurance underwriting - Number of kids - Health History
- Hobbies - Occupation - ANSWER//# of kids A master contract and certificate
of coverage can be found in which type of policy? -Long term -Medicaid -
Group - Medicare - ANSWER//Group A guaranteed issue insurance policy as
no - Initial premium requirement - Incontestable period - Waiting period -
Medical underwriting - ANSWER//- Medical underwriting Guaranteed issue
insurance - That means regardless of your health, you cannot be declined or
turned down. However, guaranteed issue life insurance generally offers low
death benefit options with higher than normal premiums. What types of life
insurance are normally used for key employee indemnification? - Term, whole
and universal life insurance - Increasing term insurance - Joint, credit, and
group life insurance - Adjustable, permeant and limited pay life insurance -
ANSWER//- Term, whole and universal life insurance Key employee
indemnification- this is an insurance policy purchased by a business to
compensate that business for financial losses that would arise from the death
or long-term disability of important company employees What is the
nonforfeiture value of an annuity before annuitization? -All premiums paid - All
premiums paid plus interest - All premiums paid minus any withdrawals and
surrender charges - All premiums paid, plus interest, minus any withdrawals
and surrender charges. - ANSWER//All premiums paid, plus interest, minus
any withdrawals and surrender charges. Annuitization is the process of
converting an annuity investment into a series of periodic income payments.
Annuities may be annuitized for a specific period or for the life of the
annuitant. ... Annuitants can arrange for beneficiaries to receive a portion of
