PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM
Study online at https://quizlet.com/_1v5duf
1. 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?: Benefits are adjusted to an amount that the
premium would have purchased at the correct age or gender.
2. Which of the following must be given to the insurer within 20 days after oc-
currence or commencement of any loss covered by the policy, or as thereafter
as is reasonably possible?: Notice of claim.
3. When will a policy pay on a UCR basis?: When particular benefits are not listed
on a payment schedule.
4. All of the following are non-forfeiture options EXCEPT: Cash dividend option.
5. What happens when the lifetime maximum benefit limit has been reached?-
: The insured will pay all of the remaining medial costs for as long as the policy is in
force.
6. Whose responsibility is it to make sure that the company is notified of a
death claim at the earliest possible opportunity (in most cases)?: The producer.
7. What is the waiver of premium provision?: In a long term care contract, the
premium is waived after the insured has been confined for a specific period of time.
8. All of the following are common exclusions from loss found in disability
income policies EXCEPT for that incurred while?: Committing a misdemeanor
9. Which is a disadvantage to a flexible premium annuity?: The actual amount
of the annuity benefit cannot be determined in advance.
10. What does coninsurance mean?: The insurer and the insured share expenses
over the deductible.
11. Under normal conditions which of the following is TRUE for proof of loss
when a single loss is claimed?: The insured has 90 days from the date of loss to
provide proof of loss.
12. Which one of the following represents an advantage of obtaining a policy
loan versus a withdrawal?: The loan is not taxed while a withdrawal is taxed for
amounts above the contract cost basis.
13. All of the following statements define preexisting conditions EXCEPT?: -
Any chronic health condition that presents symptoms and which was unknown at
the time of application.
14. Which is the difference between participating and non-participating?: Par-
ticipating policies pay dividends while non-participating policies do not.
15. How does the per captia rule apply to proceeds from a life insurance
policy?: The proceeds are divided equally among living primary beneficiaries.
16. How does a noncancelable policy differ from a guaranteed renewable
policy?: With the noncancelable policy the insurer may increase premiums only
based on the terms of the policy.
1/5
, PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM
Study online at https://quizlet.com/_1v5duf
17. Which of the following refers to how often a premium is paid?: Mode
18. What is the return of premium rider?: An increasing amount of term insurance
that always equals the total of premiums paid up to the current point.
19. What does first dollar coverage mean?: As soon as covered medical expens-
es are incurred, the policy begins to pay.
20. When the suicide clause is inserted in a life insurance contract, death by
suicide is not covered during the policy's initial:: 2 year period
21. All of the following are required signatures on a life insurance application
EXCEPT?: The minor in a juvenile policy.
22. What is the purpose of Stranger-originated life insurance (STOLI)?: The
policy is originated primarily or solely for the purpose of resale.
23. 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?: The applicant and possibly the agent initial
any changes made.
24. What specific new procedures does the USA Patriot Act require of insur-
ance program?: Establish an anti-money laundering program.
25. Which of the following occurs immediately after the application is submit-
ted and the initial premium paid?: The underwriting process begins.
26. A consumer report used to determine eligibility for insurance may include
all of the following EXCEPT?: Medical Underwriting exam.
27. Why are insurance policies considered conditional contracts?: Certain
conditions need to be met to make the contract legally enforceable.
28. When does insurable interest come into play in a life insurance policy?: -
When the applicant for the policy is not the insured.
29. All of the following are TRUE regarding incomplete applications EXCEPT?-
: The incomplete application can be accepted with the missing information added
later.
30. What is a MIB report?: Medical information on an applicant for assessing life
or health insurance risk.
31. Obtaining consumer information reports under false pretenses is prose-
cutable by which of the following?: Fair Credit Reporting Act
32. All of the following are classifications of risk EXCEPT?: Non-nicotine
33. Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability?: Binding receipt
34. If the insurer wishes to share an applicant's HIV status, the applicant must
be given full notice of all of the following EXCEPT?: The treatment procedures
that are covered by the policy.
2/5
Study online at https://quizlet.com/_1v5duf
1. 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?: Benefits are adjusted to an amount that the
premium would have purchased at the correct age or gender.
2. Which of the following must be given to the insurer within 20 days after oc-
currence or commencement of any loss covered by the policy, or as thereafter
as is reasonably possible?: Notice of claim.
3. When will a policy pay on a UCR basis?: When particular benefits are not listed
on a payment schedule.
4. All of the following are non-forfeiture options EXCEPT: Cash dividend option.
5. What happens when the lifetime maximum benefit limit has been reached?-
: The insured will pay all of the remaining medial costs for as long as the policy is in
force.
6. Whose responsibility is it to make sure that the company is notified of a
death claim at the earliest possible opportunity (in most cases)?: The producer.
7. What is the waiver of premium provision?: In a long term care contract, the
premium is waived after the insured has been confined for a specific period of time.
8. All of the following are common exclusions from loss found in disability
income policies EXCEPT for that incurred while?: Committing a misdemeanor
9. Which is a disadvantage to a flexible premium annuity?: The actual amount
of the annuity benefit cannot be determined in advance.
10. What does coninsurance mean?: The insurer and the insured share expenses
over the deductible.
11. Under normal conditions which of the following is TRUE for proof of loss
when a single loss is claimed?: The insured has 90 days from the date of loss to
provide proof of loss.
12. Which one of the following represents an advantage of obtaining a policy
loan versus a withdrawal?: The loan is not taxed while a withdrawal is taxed for
amounts above the contract cost basis.
13. All of the following statements define preexisting conditions EXCEPT?: -
Any chronic health condition that presents symptoms and which was unknown at
the time of application.
14. Which is the difference between participating and non-participating?: Par-
ticipating policies pay dividends while non-participating policies do not.
15. How does the per captia rule apply to proceeds from a life insurance
policy?: The proceeds are divided equally among living primary beneficiaries.
16. How does a noncancelable policy differ from a guaranteed renewable
policy?: With the noncancelable policy the insurer may increase premiums only
based on the terms of the policy.
1/5
, PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM
Study online at https://quizlet.com/_1v5duf
17. Which of the following refers to how often a premium is paid?: Mode
18. What is the return of premium rider?: An increasing amount of term insurance
that always equals the total of premiums paid up to the current point.
19. What does first dollar coverage mean?: As soon as covered medical expens-
es are incurred, the policy begins to pay.
20. When the suicide clause is inserted in a life insurance contract, death by
suicide is not covered during the policy's initial:: 2 year period
21. All of the following are required signatures on a life insurance application
EXCEPT?: The minor in a juvenile policy.
22. What is the purpose of Stranger-originated life insurance (STOLI)?: The
policy is originated primarily or solely for the purpose of resale.
23. 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?: The applicant and possibly the agent initial
any changes made.
24. What specific new procedures does the USA Patriot Act require of insur-
ance program?: Establish an anti-money laundering program.
25. Which of the following occurs immediately after the application is submit-
ted and the initial premium paid?: The underwriting process begins.
26. A consumer report used to determine eligibility for insurance may include
all of the following EXCEPT?: Medical Underwriting exam.
27. Why are insurance policies considered conditional contracts?: Certain
conditions need to be met to make the contract legally enforceable.
28. When does insurable interest come into play in a life insurance policy?: -
When the applicant for the policy is not the insured.
29. All of the following are TRUE regarding incomplete applications EXCEPT?-
: The incomplete application can be accepted with the missing information added
later.
30. What is a MIB report?: Medical information on an applicant for assessing life
or health insurance risk.
31. Obtaining consumer information reports under false pretenses is prose-
cutable by which of the following?: Fair Credit Reporting Act
32. All of the following are classifications of risk EXCEPT?: Non-nicotine
33. Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability?: Binding receipt
34. If the insurer wishes to share an applicant's HIV status, the applicant must
be given full notice of all of the following EXCEPT?: The treatment procedures
that are covered by the policy.
2/5
