PSI Life, Accident, and Health Insurance Practice Questions

Which of the following is TRUE of an equity-indexed annuity? Correct Answers It has a guaranteed minimum interest rate Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? Correct Answers major medical insurance Which of the following is TRUE for a flexible premium annuity? Correct Answers The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount Which problem was universal life insurance designed to address? Correct Answers low interest rates during periods of high inflation When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability? Correct Answers When there is a buy-sell agreement funded with disability insurance to buyout the interest of a deceased owner or partner A group conversion option may be used in all the following instances EXCEPT Correct Answers a life-changing event, such as marriage, divorce, or childbirth Which of the following policy types is considered double indemnity? Correct Answers accidental death Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age? Correct Answers Renewable term States generally define a true "group" for insurance as requiring a minimum of how many participants? Correct Answers 10 Which of the following lists the three common types of permanent individual life insurance? Correct Answers Variable Life, Whole Life, Universal Life