PSI life, accident, and health Exam Questions with correct Answers latest update A+ GRADED

How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits? A. immediately B. 1 year C. 2 years D. At age 65 - ANSWER What is the return of premium rider? A. an increasing amount of term insurance that always equals the total of premiums paid up to the current point B. a provision that allows the insured to cancel the policy in the first two years and have premiums refunded C. an increasing amount of term insurance that equals the cash value of the policy at any point in time D. a provision that states the insurer must return any premiums paid during the free-look period - ANSWER- In a home healthcare benefit, all of the following are eligible expenses EXCEPT A. intermittent part-time nursing care; B. physical, occupational, or speech therapy; C. blood transfusions D. medical social services; - ANSWER- All of the following are classifications of risk EXCEPT A. substandard B. preferred C. declined D. non-nicotine - ANSWER- Which of the following is exempted from the incontestability provision in insurance policies? A. fraudulent misstatements B. pre-existing conditions C. change in health D. changes in the insurance code - ANSWER A group conversion option may be used in all the following instances EXCEPT A. the termination of the master policy. B. loss of coverage due to loss of employment. C. loss of eligibility on the part of a class of insureds. D. a life-changing event, such as marriage, divorce, or childbirth. - ANSWER- Which of the following is characteristic of a non-qualified plan? A. defined vesting schedule B. plan established by the employer C. plan does not meet federal guidelines for tax benefits D. employer contributions are deductible business expenses - ANSWER- What does it mean if a health policy is conditionally renewable? A. Insurer may elect NOT to renew based on the health of the insured. B. Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date. C. Insurer may elect NOT to renew only under conditions specified in the policy. D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims. - ANSWER- Which of the following is TRUE of an equity-indexed annuity? A. It is a variable annuity. B. It may decrease in value. C. It requires a securities license to sell. D. It has a guaranteed minimum interest rate. - ANSWER- During which period of a Disability Income Policy is coverage effective but during which no benefits will be paid under the policy? A. benefit period B. elimination period C. grace period D. probationary period - ANSWER- What specific new procedures does the USA Patriot Act require of insurance companies? A. Establish an anti-money laundering program B. Investigate applicants for potential terrorist links C. Report large transactions by charitable organizations D. To take action against employees for failure to implement the Act. - ANSWER- A consumer report used to determine eligibility for insurance may include all of the following EXCEPT A. character. B. reputation. C. credit information. D. medical underwriting exam. - ANSWER- All of the following are TRUE regarding incomplete applications EXCEPT A. the underwriting department will return the application to the agent. B. the applicant will have to wait additional time before coverage begins. C. there will be a delay in the underwriting process. D. the incomplete application can be accepted with the missing information added later. - ANSWER- Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? A. medicaid insurance B. major medical insurance C. supplemental medical insurance D. long term care insurance - ANSWER- Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility? A. accelerated benefits rider B. assisted living rider C. terminal illness rider D. long term care rider - ................................................CONTINUED......................................................