PSI Insurance Exam newest graded a+ (questions and answers)
verified \\\\pass 100%
All of the following are classifications of risk EXCEPT - answer-non-nicotine.
Group credit life insurance is written as - answer-decreasing term.
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.
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
What is the maximum amount of time the insured has to file legal action against the
insurer after written proof of loss is provided? - answer-3 years
Which provision found in disability income policies specifies that an individual will
automatically qualify for benefits if they suffer a loss of two limbs, total blindness, or loss
of speech? - answer-presumptive disability
All the following are characteristics of a Whole Life Policy EXCEPT - answer-
guaranteed dividends.
which method of handling risk is defined as the planned assumption of risk through self-
insurance? - answer-retention
To be valid, all life insurance and health insurance contracts must include which of the
following elements? - answer-consideration
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while - answer-commiting a misdemeanor.
n a level term life policy, what does the word "level" refer to? - answer-death benefit
,Why are insurance policies considered conditional contracts? - answer-Certain
conditions need to be met to make the contract legally enforceable.
Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - answer-It is financially insufficient to cover end of life
expenses.
Which is a common approach to addressing the problems inherent in naming a minor as
a beneficiary to a life insurance policy? - answer-establishing a trust to administer
proceeds
If a life insurance policy is deemed to be a Modified Endowment Contract (MEC), how
are the withdrawals treated for taxation purposes? - answer-They are on a LIFO (last-in
first-out) basis.
In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? - answer-
Flexible Spending Account (FSA)
In a level term life policy, which ALWAYS remains constant? - answer-death benefit
Which feature of term insurance provides temporary protection that can be changed to
permanent protection within a specified number of years without evidence of
insurability? - answer-convertible
Which of the following is TRUE of a point of a service plan? - answer-A patient's in-
network care is coordinated by a primary care physician.
Which of the following disability income riders allows the insured to purchase additional
coverage at specified intervals without evidence of insurability? - answer-future
increase option
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? - answer-common disaster clause
Which of the following plans can be purchased to provide coverage in place of Medicare
Parts A and B combined? - answer-Medicare advantage
Why do equity-indexed life insurance policies have an increased premium? - answer-for
increased amount of protection
When the courts look at a contract to determine the intent of the parties, which of the
following is considered? - answer-the entire contract
What authority is NOT written and allows a producer to conduct the business of the
insurer? - answer-implied
, 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
Which of the following underwriting sources acts as an information exchange by
collecting general medical information about an individual's health history? - answer-
Medical Information Bureau
A group conversion option may be used in all the following instances EXCEPT -
answer-a life-changing event, such as marriage, divorce, or childbirth.
Which of the following is NOT authorized to transact insurance in a state? - answer-
non-admitted insurer
Which type of assignment occurs when a person transfers ownership of a life insurance
policy to another person, such as a son when turning 18? - answer-permanent
Which of the following is TRUE of an equity-indexed annuity? - answer-It has a
guaranteed minimum interest rate.
An insurance policy that is intended to restore the insured to the same financial status
as before the loss is a contract of - answer-indemnity.
Which type of life policy can be continued year after year without a required medical
examination, but rates are dependent on the insured's current age? - answer-
renewable term
Which type of annuity covers two or more annuitants and provides monthly income only
until the first annuitant dies? - answer-joint life annuity
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)? -
answer-Physicians are paid a fee-for-service.
Which of the following statements is CORRECT about the Coordination of Benefits
Provision? - answer-It prevents an insured covered by two health plans from making a
profit on a covered loss.
Which option enables the insured to purchase additional disability income protection at
specified future dates at the applicable premium rate at the attained age at the time of
future purchase? - answer-guaranteed insurability
A basic vision care package includes all of the following EXCEPT - answer-safety
glasses.
verified \\\\pass 100%
All of the following are classifications of risk EXCEPT - answer-non-nicotine.
Group credit life insurance is written as - answer-decreasing term.
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.
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
What is the maximum amount of time the insured has to file legal action against the
insurer after written proof of loss is provided? - answer-3 years
Which provision found in disability income policies specifies that an individual will
automatically qualify for benefits if they suffer a loss of two limbs, total blindness, or loss
of speech? - answer-presumptive disability
All the following are characteristics of a Whole Life Policy EXCEPT - answer-
guaranteed dividends.
which method of handling risk is defined as the planned assumption of risk through self-
insurance? - answer-retention
To be valid, all life insurance and health insurance contracts must include which of the
following elements? - answer-consideration
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while - answer-commiting a misdemeanor.
n a level term life policy, what does the word "level" refer to? - answer-death benefit
,Why are insurance policies considered conditional contracts? - answer-Certain
conditions need to be met to make the contract legally enforceable.
Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - answer-It is financially insufficient to cover end of life
expenses.
Which is a common approach to addressing the problems inherent in naming a minor as
a beneficiary to a life insurance policy? - answer-establishing a trust to administer
proceeds
If a life insurance policy is deemed to be a Modified Endowment Contract (MEC), how
are the withdrawals treated for taxation purposes? - answer-They are on a LIFO (last-in
first-out) basis.
In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? - answer-
Flexible Spending Account (FSA)
In a level term life policy, which ALWAYS remains constant? - answer-death benefit
Which feature of term insurance provides temporary protection that can be changed to
permanent protection within a specified number of years without evidence of
insurability? - answer-convertible
Which of the following is TRUE of a point of a service plan? - answer-A patient's in-
network care is coordinated by a primary care physician.
Which of the following disability income riders allows the insured to purchase additional
coverage at specified intervals without evidence of insurability? - answer-future
increase option
An insured and the beneficiary are both killed in a fatal accident. Which provision
presumes the insured survived the beneficiary? - answer-common disaster clause
Which of the following plans can be purchased to provide coverage in place of Medicare
Parts A and B combined? - answer-Medicare advantage
Why do equity-indexed life insurance policies have an increased premium? - answer-for
increased amount of protection
When the courts look at a contract to determine the intent of the parties, which of the
following is considered? - answer-the entire contract
What authority is NOT written and allows a producer to conduct the business of the
insurer? - answer-implied
, 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
Which of the following underwriting sources acts as an information exchange by
collecting general medical information about an individual's health history? - answer-
Medical Information Bureau
A group conversion option may be used in all the following instances EXCEPT -
answer-a life-changing event, such as marriage, divorce, or childbirth.
Which of the following is NOT authorized to transact insurance in a state? - answer-
non-admitted insurer
Which type of assignment occurs when a person transfers ownership of a life insurance
policy to another person, such as a son when turning 18? - answer-permanent
Which of the following is TRUE of an equity-indexed annuity? - answer-It has a
guaranteed minimum interest rate.
An insurance policy that is intended to restore the insured to the same financial status
as before the loss is a contract of - answer-indemnity.
Which type of life policy can be continued year after year without a required medical
examination, but rates are dependent on the insured's current age? - answer-
renewable term
Which type of annuity covers two or more annuitants and provides monthly income only
until the first annuitant dies? - answer-joint life annuity
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)? -
answer-Physicians are paid a fee-for-service.
Which of the following statements is CORRECT about the Coordination of Benefits
Provision? - answer-It prevents an insured covered by two health plans from making a
profit on a covered loss.
Which option enables the insured to purchase additional disability income protection at
specified future dates at the applicable premium rate at the attained age at the time of
future purchase? - answer-guaranteed insurability
A basic vision care package includes all of the following EXCEPT - answer-safety
glasses.
