PSI Life, Accident, Health Practice
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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.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - Answer✅✅Medical Underwriting exam.
Why are insurance policies considered conditional contracts? - Answer✅✅Certain
conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? -
Answer✅✅When the applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT? -
Answer✅✅The incomplete application can be accepted with the missing
information added later.
What is a MIB report? - Answer✅✅Medical information on an applicant for
assessing life or health insurance risk.
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - Answer✅✅Fair Credit Reporting Act
All of the following are classifications of risk EXCEPT? - Answer✅✅Non-nicotine
Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - Answer✅✅Binding receipt
If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT? - Answer✅✅The treatment procedures
that are covered by the policy.
, How do warranties differ from representations? - Answer✅✅A warranty is
guaranteed to be true, a representation is believed to be true to the best of one's
knowledge.
In noncontributory plans, which percentage of eligible members must participate? -
Answer✅✅100%
Managed care plans increase efficiency by all of the following means EXCEPT? -
Answer✅✅Transferring the management of costs to the insureds.
All of the following are tax qualified retirement plans EXCEPT? - Answer✅✅Section
529 plan.
Which of the following is characteristic of a non-qualified plan? - Answer✅✅Plan
does not meet federal guidelines for tax benefits.
Under which situation must insurable interest exist between the applicant and
insured at the time of application? - Answer✅✅When a third-party application
names themselves beneficiary.
The group conversion option is allowed for all of the following EXCEPT? -
Answer✅✅During the annual benefits enrollment period.
In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - Answer✅✅The
individual's policy pays first, the spouse's policy pay the remaining up to coverage
amount.
Why is rehabilitation considered worthy of federal help under workers'
compensation? - Answer✅✅It reduces insurance losses and helps regain the
worker's dignity.
When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - Answer✅✅When the taxpayer's
medical expenses exceed 7.5% of adjusted gross income during a taxable year.
Short term disability insurance generally only covers injuries due to which of the
following? - Answer✅✅Non-occupational injuries.
What type of insurance should a company purchase if it wants to insure the life of
its CEO? - Answer✅✅Key person insurance
For an individual long-term care policy there is an annual dollar limit for tax
deduction that is based on which of the following? - Answer✅✅Age
When should a buy-sell agreement include a provision for the buy-out of an owner's
business interest in the event of a disability? - Answer✅✅When there is a buy-sell
Exam| Brand New Exam Questions
with 100% Correct Clear Verified
Answers| All Graded A+|Latest
Premium Update|100%
Guaranteed Success.
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.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - Answer✅✅Medical Underwriting exam.
Why are insurance policies considered conditional contracts? - Answer✅✅Certain
conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? -
Answer✅✅When the applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT? -
Answer✅✅The incomplete application can be accepted with the missing
information added later.
What is a MIB report? - Answer✅✅Medical information on an applicant for
assessing life or health insurance risk.
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - Answer✅✅Fair Credit Reporting Act
All of the following are classifications of risk EXCEPT? - Answer✅✅Non-nicotine
Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - Answer✅✅Binding receipt
If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT? - Answer✅✅The treatment procedures
that are covered by the policy.
, How do warranties differ from representations? - Answer✅✅A warranty is
guaranteed to be true, a representation is believed to be true to the best of one's
knowledge.
In noncontributory plans, which percentage of eligible members must participate? -
Answer✅✅100%
Managed care plans increase efficiency by all of the following means EXCEPT? -
Answer✅✅Transferring the management of costs to the insureds.
All of the following are tax qualified retirement plans EXCEPT? - Answer✅✅Section
529 plan.
Which of the following is characteristic of a non-qualified plan? - Answer✅✅Plan
does not meet federal guidelines for tax benefits.
Under which situation must insurable interest exist between the applicant and
insured at the time of application? - Answer✅✅When a third-party application
names themselves beneficiary.
The group conversion option is allowed for all of the following EXCEPT? -
Answer✅✅During the annual benefits enrollment period.
In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - Answer✅✅The
individual's policy pays first, the spouse's policy pay the remaining up to coverage
amount.
Why is rehabilitation considered worthy of federal help under workers'
compensation? - Answer✅✅It reduces insurance losses and helps regain the
worker's dignity.
When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - Answer✅✅When the taxpayer's
medical expenses exceed 7.5% of adjusted gross income during a taxable year.
Short term disability insurance generally only covers injuries due to which of the
following? - Answer✅✅Non-occupational injuries.
What type of insurance should a company purchase if it wants to insure the life of
its CEO? - Answer✅✅Key person insurance
For an individual long-term care policy there is an annual dollar limit for tax
deduction that is based on which of the following? - Answer✅✅Age
When should a buy-sell agreement include a provision for the buy-out of an owner's
business interest in the event of a disability? - Answer✅✅When there is a buy-sell
