PSI EXAM-PSI - NY Life, Accident and Health Actual Questions and Answer

PSI EXAM-PSI - NY Life, Accident and Health Actual Questions and Answers During which period of a Disability Income Policy is coverage effective but during which no benefits will be paid under the policy? - CORRECT ANSWER-Probationary period All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while - CORRECT ANSWER-commiting a misdemeanor What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one? - CORRECT ANSWER-insured original issue age is used How does a noncancelable policy differ from a guaranteed renewable policy? - CORRECT ANSWER-With the noncancelable policy the insurer may increase premiums only based on the terms of the policy. What does first dollar coverage mean? - CORRECT ANSWER-As soon as covered medical expenses are incurred, the policy begins to pay. What is the maximum amount of time the insured has to file legal action against the insurer after written proof of loss is provided? - CORRECT ANSWER-3 years What is a MIB report? - CORRECT ANSWER-medical information on an applicant for assessing life or health insurance risk All of the following are TRUE regarding incomplete applications EXCEPT - CORRECT ANSWER-the incomplete application can be accepted with the missing information added later. hy are insurance policies considered conditional contracts? - CORRECT ANSWERCertain conditions need to be met to make the contract legally enforceable. When does insurable interest come into play in a life insurance policy? - CORRECT ANSWER-when the applicant for the policy is not the insured Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability? - CORRECT ANSWER-binding receipt What specific new procedures does the USA Patriot Act require of insurance companies? - CORRECT ANSWER-Establish an anti-money laundering program