PSI Insurance: Complete Guide to Coverage, Benefits & Claims

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PSI INSURANCE (OH LIFE, ACCIDENT AND HEALTH)

EXAMS (LATEST UPDATES STUDY BUNDLE

PACKAGE WITH SOLUTIONS) QUESTIONS & ANSWERS

| GRADE A | 100% CORRECT (VERIFIED ANSWERS)

What is it called when a life insurance policy pays a multiple of

the coverage amount when certain types of accidents occur?

.....ANSWER.....multiple indemnity

Upon the issuance of a conditional receipt for a renewal when

the premium is paid AFTER the time granted by the insurer, what

is the maximum amount of time for reinstatement of the policy?

.....ANSWER.....30 days

Which of the following statements regarding a pure life annuity

payout option is correct? .....ANSWER.....This option provides the

highest monthly income.

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Which of the following does not apply to the time limit on certain

defenses provision in health insurance policies?

.....ANSWER.....fraudulent misstatements

If an individual is insured by both their own health insurance

policy and their spouse's policy, which policy pays first in the

event of an illness? .....ANSWER.....The individual's policy pays

first, the spouse's policy pays the remaining up to coverage

amount.

When can the premiums of an individually owned health

insurance policy be deducted from the individual's income tax?

.....ANSWER.....when the taxpayer's unreimbursed medical

expenses exceed 7.5% of adjusted gross income during a

taxable year

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.

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Which of the following is a characteristic of Health Maintenance

Organizations (HMOs)? .....ANSWER.....preventive care

The life insurance policy will not be truly effective until all of the

following occur EXCEPT .....ANSWER.....the producer has

explained the policy to the client.

Under which situation must insurable interest exist between the

applicant and insured at the time of application?

.....ANSWER.....when a third-party applicant names themselves

beneficiary

Which of the following is a distinguishing feature of a variable

life insurance policy? .....ANSWER.....The cash value earnings are

based on the performance of the separate account.

The person who receives the benefit of an annuity is known as the

.....ANSWER.....annuitant.

Which of the following is an example of a premium payment

mode? .....ANSWER.....annual premium payment

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How do most disability policies handle the case of a recurrent

disability occurring at least 90 days after the first claim?

.....ANSWER.....it must be handled as a new claim for a new

period of disability, requiring a new elimination period.

Which of the following is true for most comprehensive dental

policies? .....ANSWER.....Routine care is provided without

coinsurance or deductibles.

Under a Medicare Supplement Policy, preexisting conditions

CANNOT be excluded after how many months from the effective

date of the policy? .....ANSWER.....6 months

What does an application for insurance contractually represent

for the insured? .....ANSWER.....an offer

Which of the following is exempted from the incontestability

provision in insurance policies? .....ANSWER.....fraudulent

misstatements