PSI Life, Accident, Health Practice Exam
Questions and Exam
Which is an ACCURATE statement regarding benefits of Medicare supplement and
Medicare select plans?
1
The insurer is able to cancel, or deny renewal of an existing policy, based solely on the
health of the insured.
2
There is no restriction for benefits after the coverage has been in effect for six months
when involving a preexisting condition.
3
The coverage for a loss from an illness or disease is treated differently than for a loss
resulting from an injury due to an accident.
4
The coverage for a spouse cannot be terminated for any reason, including for
nonpayment of premiums. - ANSWER 2
There is no restriction for benefits after the coverage has been in effect for six months
when involving a preexisting condition.
How is the insurance commissioner chosen?
1
Elected by the people.
2
Appointed by the Governor
3
Selected by a vote in the House and the Senate.
4
Randomly selected from a list of qualified candidates. - ANSWER 1
Elected by the people.
An insurance agent is a person who transacts all of the following types of insurance
EXCEPT:
1
annuities.
2
homeowners.
3
auto insurance.
4
,life insurance. - ANSWER 4
life insurance.
The California Legislature declared all of the following when creating the Healthy
Families Program EXCEPT:
1
that most uninsured children come from low-income families.
2
lack of educational resources for children and their parents leads to increased medical
expenses.
3
that lack of insurance coverage for children results in reduced access to medical
services.
4
when a child is seriously ill or injured, the costs of needed medical care can force
families into financial ruin. - ANSWER 2
lack of educational resources for children and their parents leads to increased medical
expenses.
Which of the following BEST defines the general concept of the 24-hour care plan?
1
It integrates workers compensation medical care with the care provided by group health
insurance.
2
It provides immediate medical care from any source for injuries on which occur on the
job.
3
It permits non job related injuries to be treated through the worker?s compensation
program.
4
It pays any medical bill from a job related injury for services within the first 24 hours of
the injury. - ANSWER 1
It integrates workers compensation medical care with the care provided by group health
insurance.
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to
insurance?
1
An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person
has not.
2
An "admitted" person has been granted admission to an insurance association, while a
"nonadmitted" person has not been accepted.
,3
An "admitted" person has been admitted to an accreditation program, while a
"nonadmitted" person has yet to earn the credits.
4
An "admitted" person has the right to transact insurance business within the state, while
a "nonadmitted" person is not entitled to this action. - ANSWER 4
An "admitted" person has the right to transact insurance business within the state, while
a "nonadmitted" person is not entitled to this action.
When may a licensee surrender for cancellation any license under which they are
permitted to act?
1
upon renewal of the license
2
within 60 days of renewal of their license
3
at any time
4
when they no longer have any clients with policies in force - ANSWER 3
at any time
When does a disability policy become incontestable as to the statements contained in
the application?
1
After this policy been in force for a period of one year during the lifetime of the insured.
2
After this policy been in force for a period of two years during the lifetime of the insured.
3
When the company has confirmed all of the statements and issued a binding contract.
4
Two years after the date of the application when a conditional receipt has been issued. -
ANSWER 2
After this policy been in force for a period of two years during the lifetime of the insured.
Which statement describes the intent of the California Financial Information Privacy
Act?
1
It enables and authorizes the Gramm-Leach-Bliley Act into California legal system.
2
It permits civil lawsuits against financial institutions who violate the Gramm-Leach-Bliley
Act.
3
, It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
4
It permits greater flexibility to financial institutions than privacy protections enacted in
Gramm-Leach-Bliley Act. - ANSWER 3
It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
All of the following are TRUE about the rules regarding the sale of life insurance and
annuities to seniors age 65 or older EXCEPT
1
the senior is entitled to have others present during any presentation by an agent, broker
or insurer.
2
all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older
a duty of honesty, good faith, and fair dealing.
3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
4
advance notice must be provided to the senior disclosing and identifying details of the
visit and the agent or broker prior to the scheduled meeting. - ANSWER 3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
All of the following are a duty of an insurer in regards to claims on file and record
documentation EXCEPT
1
maintaining claim data so that an insurer shall be able to provide the claim number, line
of coverage, and other pertinent data.
2
recording the date the licensee received, date(s) the licensee processed and date the
licensee transmitted or mailed every material and relevant document in the file.
3
maintaining any sales material, which had a material impact on the claims process.
4
maintaining claim files that are accessible, legible, and claim of duplication. - ANSWER
3
maintaining any sales material, which had a material impact on the claims process.
"Person" means all of the following EXCEPT
1
an association.
Questions and Exam
Which is an ACCURATE statement regarding benefits of Medicare supplement and
Medicare select plans?
1
The insurer is able to cancel, or deny renewal of an existing policy, based solely on the
health of the insured.
2
There is no restriction for benefits after the coverage has been in effect for six months
when involving a preexisting condition.
3
The coverage for a loss from an illness or disease is treated differently than for a loss
resulting from an injury due to an accident.
4
The coverage for a spouse cannot be terminated for any reason, including for
nonpayment of premiums. - ANSWER 2
There is no restriction for benefits after the coverage has been in effect for six months
when involving a preexisting condition.
How is the insurance commissioner chosen?
1
Elected by the people.
2
Appointed by the Governor
3
Selected by a vote in the House and the Senate.
4
Randomly selected from a list of qualified candidates. - ANSWER 1
Elected by the people.
An insurance agent is a person who transacts all of the following types of insurance
EXCEPT:
1
annuities.
2
homeowners.
3
auto insurance.
4
,life insurance. - ANSWER 4
life insurance.
The California Legislature declared all of the following when creating the Healthy
Families Program EXCEPT:
1
that most uninsured children come from low-income families.
2
lack of educational resources for children and their parents leads to increased medical
expenses.
3
that lack of insurance coverage for children results in reduced access to medical
services.
4
when a child is seriously ill or injured, the costs of needed medical care can force
families into financial ruin. - ANSWER 2
lack of educational resources for children and their parents leads to increased medical
expenses.
Which of the following BEST defines the general concept of the 24-hour care plan?
1
It integrates workers compensation medical care with the care provided by group health
insurance.
2
It provides immediate medical care from any source for injuries on which occur on the
job.
3
It permits non job related injuries to be treated through the worker?s compensation
program.
4
It pays any medical bill from a job related injury for services within the first 24 hours of
the injury. - ANSWER 1
It integrates workers compensation medical care with the care provided by group health
insurance.
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to
insurance?
1
An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person
has not.
2
An "admitted" person has been granted admission to an insurance association, while a
"nonadmitted" person has not been accepted.
,3
An "admitted" person has been admitted to an accreditation program, while a
"nonadmitted" person has yet to earn the credits.
4
An "admitted" person has the right to transact insurance business within the state, while
a "nonadmitted" person is not entitled to this action. - ANSWER 4
An "admitted" person has the right to transact insurance business within the state, while
a "nonadmitted" person is not entitled to this action.
When may a licensee surrender for cancellation any license under which they are
permitted to act?
1
upon renewal of the license
2
within 60 days of renewal of their license
3
at any time
4
when they no longer have any clients with policies in force - ANSWER 3
at any time
When does a disability policy become incontestable as to the statements contained in
the application?
1
After this policy been in force for a period of one year during the lifetime of the insured.
2
After this policy been in force for a period of two years during the lifetime of the insured.
3
When the company has confirmed all of the statements and issued a binding contract.
4
Two years after the date of the application when a conditional receipt has been issued. -
ANSWER 2
After this policy been in force for a period of two years during the lifetime of the insured.
Which statement describes the intent of the California Financial Information Privacy
Act?
1
It enables and authorizes the Gramm-Leach-Bliley Act into California legal system.
2
It permits civil lawsuits against financial institutions who violate the Gramm-Leach-Bliley
Act.
3
, It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
4
It permits greater flexibility to financial institutions than privacy protections enacted in
Gramm-Leach-Bliley Act. - ANSWER 3
It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
All of the following are TRUE about the rules regarding the sale of life insurance and
annuities to seniors age 65 or older EXCEPT
1
the senior is entitled to have others present during any presentation by an agent, broker
or insurer.
2
all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older
a duty of honesty, good faith, and fair dealing.
3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
4
advance notice must be provided to the senior disclosing and identifying details of the
visit and the agent or broker prior to the scheduled meeting. - ANSWER 3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
All of the following are a duty of an insurer in regards to claims on file and record
documentation EXCEPT
1
maintaining claim data so that an insurer shall be able to provide the claim number, line
of coverage, and other pertinent data.
2
recording the date the licensee received, date(s) the licensee processed and date the
licensee transmitted or mailed every material and relevant document in the file.
3
maintaining any sales material, which had a material impact on the claims process.
4
maintaining claim files that are accessible, legible, and claim of duplication. - ANSWER
3
maintaining any sales material, which had a material impact on the claims process.
"Person" means all of the following EXCEPT
1
an association.
