PSI;LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM 2023- QUESTIONS AND ANSWERS

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 coninsurance mean? - answerThe insurer and the insured share expenses over the deductible. Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed? - answerThe insured has 90 days from the date of loss to provide proof of loss. Which one of the following represents an advantage of obtaining a policy loan versus a withdrawal? - answerThe loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis. All of the following statements define preexisting conditions EXCEPT? - answerAny chronic health condition that presents symptoms and which was unknown at the time of application. Which is the difference between participating and non-participating? - answerParticipating policies pay dividends while non-participating policies do not. How does the per captia rule apply to proceeds from a life insurance policy? - answerThe proceeds are divided equally among living primary beneficiaries. How does a noncancelable policy differ from a guaranteed renewable policy? - answerWith the noncancelable policy the insurer may increase premiums only based on the terms of the policy. Which of the following refers to how often a premium is paid? - answerMode What is the return of premium rider? - answerAn increasing amount of term insurance that always equals the total of premiums paid up to the current point. 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. All of the following are TRUE regarding incomplete applications EXCEPT? - answerThe incomplete application can be accepted with the missing information added later. What is a MIB report? - answerMedical information on an applicant for assessing life or health insurance risk.