PSI L & H EXAM ACTUAL EXAM/ MOSTLY TESTED QUESTIONS
AND CORRECT DETAILED ANSWERS| 100% CORRECT
SOLUTIONS/GRADE A+
What are Disability Income benefits based on?
Ans: earned income
Qiz What is the primary purpose of a Medicare Supplement policy?
Ans: to pay for many of the medical expenses that Medicare coverage does not
Qiz Which Non-forfeiture Option would permit coverage to continue until age 100?
Ans: Reduced Paid-Up
Qiz The annual gross premium for a Life policy is the net premium
Ans: plus expenses
Qiz Which comparison of the Buyer's Guide and the Policy Summary is TRUE?
,Ans: The Buyer's Guide is generic, and the Policy Summary is specific.
Qiz Which statement concerning a Probationary period is TRUE?
Ans: It reduces adverse selection
Qiz What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new
one?
Ans: Insured original issue age is used.
Qiz Accumulation at interest is an example of which provision?
Ans: dividend option
Qiz A preexisting condition under a Medicare Supplement policy must have occurred and/or been
treated within how many months of the effective date of a MSP?
Ans: 6
Qiz Which of the following is true for most comprehensive dental policies?
Ans: Routine care is provided without coinsurance or deductibles.
,Qiz Which type of Health insurance should be purchased by a person who wants coverage for hospital
bills following an accidental injury?
Ans: Medical Expense
Qiz Health Savings Accounts (HSAs) cover current and future qualified healthcare costs. Account
beneficiaries can make tax-free withdrawals to cover all of the following EXCEPT
Ans: Medigap expenses
Qiz Group AD&D policies may be deducted by whom and under which deduction category?
Ans: the employer under business expenses
Qiz What do Medical Expense policies use to reduce adverse selection?
Ans: pre-existing conditions limitations
Qiz Which Life rider does not require additional premium?
Ans: Automatic Premium Loan
Qiz What is provided by the Producer's/Agent's Report?
Ans: personal observations about the applicant
, Qiz Under the employer shared responsibility provision of the Affordable Care Act, an employer is
exempt from penalties for not offering health insurance coverage if the employer has less how many
full-time employees?
Ans: 50
Qiz In which of the following types of contracts is only one party legally required to do something after
the insured has completed the act of paying the premium?
Ans: unilateral
Qiz The policy and the application constitute the complete agreement between the policyowner and the
insurance company. This is known as the
Ans: Entire Contract Provision
Qiz Fred has coverage under a typical Accidental Death and Dismemberment policy when he loses his
right arm and right foot in an auto accident. What will the policy pay?
Ans: The Principal Sum
Qiz If a Whole Life policy is surrendered for cash after 10 years, the policy owner can
Ans: expect to pay taxes on any cash value in excess of premiums paid.
Qiz What is the difference between copayment and coinsurance?
AND CORRECT DETAILED ANSWERS| 100% CORRECT
SOLUTIONS/GRADE A+
What are Disability Income benefits based on?
Ans: earned income
Qiz What is the primary purpose of a Medicare Supplement policy?
Ans: to pay for many of the medical expenses that Medicare coverage does not
Qiz Which Non-forfeiture Option would permit coverage to continue until age 100?
Ans: Reduced Paid-Up
Qiz The annual gross premium for a Life policy is the net premium
Ans: plus expenses
Qiz Which comparison of the Buyer's Guide and the Policy Summary is TRUE?
,Ans: The Buyer's Guide is generic, and the Policy Summary is specific.
Qiz Which statement concerning a Probationary period is TRUE?
Ans: It reduces adverse selection
Qiz What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new
one?
Ans: Insured original issue age is used.
Qiz Accumulation at interest is an example of which provision?
Ans: dividend option
Qiz A preexisting condition under a Medicare Supplement policy must have occurred and/or been
treated within how many months of the effective date of a MSP?
Ans: 6
Qiz Which of the following is true for most comprehensive dental policies?
Ans: Routine care is provided without coinsurance or deductibles.
,Qiz Which type of Health insurance should be purchased by a person who wants coverage for hospital
bills following an accidental injury?
Ans: Medical Expense
Qiz Health Savings Accounts (HSAs) cover current and future qualified healthcare costs. Account
beneficiaries can make tax-free withdrawals to cover all of the following EXCEPT
Ans: Medigap expenses
Qiz Group AD&D policies may be deducted by whom and under which deduction category?
Ans: the employer under business expenses
Qiz What do Medical Expense policies use to reduce adverse selection?
Ans: pre-existing conditions limitations
Qiz Which Life rider does not require additional premium?
Ans: Automatic Premium Loan
Qiz What is provided by the Producer's/Agent's Report?
Ans: personal observations about the applicant
, Qiz Under the employer shared responsibility provision of the Affordable Care Act, an employer is
exempt from penalties for not offering health insurance coverage if the employer has less how many
full-time employees?
Ans: 50
Qiz In which of the following types of contracts is only one party legally required to do something after
the insured has completed the act of paying the premium?
Ans: unilateral
Qiz The policy and the application constitute the complete agreement between the policyowner and the
insurance company. This is known as the
Ans: Entire Contract Provision
Qiz Fred has coverage under a typical Accidental Death and Dismemberment policy when he loses his
right arm and right foot in an auto accident. What will the policy pay?
Ans: The Principal Sum
Qiz If a Whole Life policy is surrendered for cash after 10 years, the policy owner can
Ans: expect to pay taxes on any cash value in excess of premiums paid.
Qiz What is the difference between copayment and coinsurance?
