PSI Life, Accident, Health

PSI Life, Accident, Health Practice Exam Questions AND ANSWERS| GRADED A (210 QUESTIONS) Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans? 1 The insurer is able to cancel, or deny renewal of an existing policy, based solely on the health of the insured. 2 There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition. 3 The coverage for a loss from an illness or disease is treated differently than for a loss resulting from an injury due to an accident. 4 The coverage for a spouse cannot be terminated for any reason, including for nonpayment of premiums. Correct Answer: 2 There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition. How is the insurance commissioner chosen? 1 Elected by the people. 2 Appointed by the Governor 3 Selected by a vote in the House and the Senate. 4 Randomly selected from a list of qualified candidates. Correct Answer: 1 Elected by the people. An insurance agent is a person who transacts all of the following types of insurance EXCEPT: 1 annuities. 2 homeowners. 3 auto insurance. 4 life insurance. Correct Answer: 4 life insurance. The California Legislature declared all of the following when creating the Healthy Families Program EXCEPT: 1 that most uninsured children come from low-income families. 2 lack of educational resources for children and their parents leads to increased medical expenses. 3 that lack of insurance coverage for children results in reduced access to medical services. 4 when a child is seriously ill or injured, the costs of needed medical care can force families into financial ruin. Correct Answer: 2 lack of educational resources for children and their parents leads to increased medical expenses. Which of the following BEST defines the general concept of the 24-hour care plan? 1 It integrates workers compensation medical care with the care provided by group health insurance. 2 It provides immediate medical care from any source for injuries on which occur on the job. 3 It permits non job related injuries to be treated through the worker?s compensation program. 4 It pays any medical bill from a job related injury for services within the first 24 hours of the injury. Correct Answer: 1 It integrates workers compensation medical care with the care provided by group health insurance. How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance? 1 An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person has not. 2 An "admitted" person has been granted admission to an insurance association, while a "nonadmitted" person has not been accepted. 3 An "admitted" person has been admitted to an accreditation program, while a "nonadmitted" person has yet to earn the credits. 4 An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action. Correct Answer: 4 An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action. When may a licensee surrender for cancellation any license under which they are permitted to act? 1 upon renewal of the license 2 within 60 days of renewal of their license 3 at any time 4 when they no longer have any clients with policies in force Correct Answer: 3 at any time When does a disability policy become incontestable as to the statements contained in the application? 1 After this policy been in force for a period of one year during the lifetime of the insured. 2 After this policy been in force for a period of two years during the lifetime of the insured. 3 When the company has confirmed all of the statements and issued a binding contract. 4 Two years after the date of the application when a conditional receipt has been issued. Correct Answer: 2 After this policy been in force for a period of two years during the lifetime of the insured. Which statement describes the intent of the California Financial Information Privacy Act? 1 It enables and authorizes the Gramm-Leach-Bliley Act into California legal system. 2 It permits civil lawsuits against financial institutions who violate the Gramm-Leach-Bliley Act. 3