CA PSI SITE - LIFE, ACCIDENT AND HEALTH AGENT
EXAMINATION (LIFE AGENT) LATEST ACTUAL EXAM
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? - ANSWER: Benefits 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? - ANSWER: Notice of claim.
When will a policy pay on a UCR basis? - ANSWER: When particular benefits are not
listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - ANSWER: Cash dividend
option.
What happens when the lifetime maximum benefit limit has been reached? -
ANSWER: The 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)? - ANSWER: The producer.
What is the waiver of premium provision? - ANSWER: In 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? - ANSWER: Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANSWER: The actual
amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? - ANSWER: The 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? - ANSWER: The 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? - ANSWER: The 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? - ANSWER: Any
chronic health condition that presents symptoms and which was unknown at the
time of application.
Which is the difference between participating and non-participating? - ANSWER:
Participating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? -
ANSWER: The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? -
ANSWER: With 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? - ANSWER: Mode
What is the return of premium rider? - ANSWER: An increasing amount of term
insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - ANSWER: As 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: - ANSWER: 2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
ANSWER: The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - ANSWER: The
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? - ANSWER: The applicant and possibly the agent initial any
changes made.
What specific new procedures does the USA Patriot Act require of insurance
program? - ANSWER: Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - ANSWER: The underwriting process begins.
EXAMINATION (LIFE AGENT) LATEST ACTUAL EXAM
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? - ANSWER: Benefits 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? - ANSWER: Notice of claim.
When will a policy pay on a UCR basis? - ANSWER: When particular benefits are not
listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT - ANSWER: Cash dividend
option.
What happens when the lifetime maximum benefit limit has been reached? -
ANSWER: The 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)? - ANSWER: The producer.
What is the waiver of premium provision? - ANSWER: In 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? - ANSWER: Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANSWER: The actual
amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? - ANSWER: The 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? - ANSWER: The 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? - ANSWER: The 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? - ANSWER: Any
chronic health condition that presents symptoms and which was unknown at the
time of application.
Which is the difference between participating and non-participating? - ANSWER:
Participating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? -
ANSWER: The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? -
ANSWER: With 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? - ANSWER: Mode
What is the return of premium rider? - ANSWER: An increasing amount of term
insurance that always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - ANSWER: As 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: - ANSWER: 2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
ANSWER: The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - ANSWER: The
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? - ANSWER: The applicant and possibly the agent initial any
changes made.
What specific new procedures does the USA Patriot Act require of insurance
program? - ANSWER: Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - ANSWER: The underwriting process begins.
