PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM questions with correct answers

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? ans 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? ans Notice of claim. When will a policy pay on a UCR basis? ans When particular benefits are not listed on a payment schedule. All of the following are non-forfeiture options EXCEPT ans Cash dividend option. What happens when the lifetime maximum benefit limit has been reached? ans 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)? ans The producer. What is the waiver of premium provision? ans In a long term care contract, the premium is waived after the insured has been confined for a specific period of time.