PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE
EXAM| 75 QUESTIONS| WITH COMPLETE SOLUTION
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? Correct 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? Correct Answer: Notice of claim.
When will a policy pay on a UCR basis? Correct Answer: When particular
benefits are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT Correct Answer: Cash
dividend option.
What happens when the lifetime maximum benefit limit has been reached? Correct
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)? Correct Answer: The
producer.
What is the waiver of premium provision? Correct 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? Correct Answer: Committing a
misdemeanor
Which is a disadvantage to a flexible premium annuity? Correct Answer: The
actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? Correct 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? Correct 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? Correct 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? Correct
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? Correct
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?
Correct Answer: The proceeds are divided equally among living primary
beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy?
Correct 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? Correct Answer:
Mode
What is the return of premium rider? Correct 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? Correct 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: Correct Answer: 2 year period
All of the following are required signatures on a life insurance application
EXCEPT? Correct Answer: The minor in a juvenile policy.
EXAM| 75 QUESTIONS| WITH COMPLETE SOLUTION
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? Correct 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? Correct Answer: Notice of claim.
When will a policy pay on a UCR basis? Correct Answer: When particular
benefits are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT Correct Answer: Cash
dividend option.
What happens when the lifetime maximum benefit limit has been reached? Correct
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)? Correct Answer: The
producer.
What is the waiver of premium provision? Correct 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? Correct Answer: Committing a
misdemeanor
Which is a disadvantage to a flexible premium annuity? Correct Answer: The
actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean? Correct 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? Correct 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? Correct 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? Correct
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? Correct
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?
Correct Answer: The proceeds are divided equally among living primary
beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy?
Correct 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? Correct Answer:
Mode
What is the return of premium rider? Correct 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? Correct 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: Correct Answer: 2 year period
All of the following are required signatures on a life insurance application
EXCEPT? Correct Answer: The minor in a juvenile policy.
