PSI life, accident, and health
Exam with 100% Q&A (Grade
A+)
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT
A. character.
B. reputation.
C. credit information.
D. medical underwriting exam. - ANSWER medical underwriting exam.
All of the following are TRUE regarding incomplete applications EXCEPT
A. the underwriting department will return the application to the agent.
B. the applicant will have to wait additional time before coverage begins.
C. there will be a delay in the underwriting process.
D. the incomplete application can be accepted with the missing information added later. -
ANSWER the incomplete application can be accepted with the missing information added later.
Compared to basic hospital, medical and surgical policies, which type of insurance provides
broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?
A. medicaid insurance
B. major medical insurance
C. supplemental medical insurance
D. long term care insurance - ANSWER major medical insurance
Which type of rider reimburses health and social service expenses incurred in a convalescent or
nursing home facility?
A. accelerated benefits rider
B. assisted living rider
,C. terminal illness rider
D. long term care rider - ANSWER long term care rider
All of the following are characteristics of COBRA EXCEPT
A. qualifying events.
B. notification statements.
C. continuation of coverage.
D. change in medical privacy procedures. - ANSWER change in medical privacy procedures.
What type of insurance should a company purchase if it wants to insure the life of its CEO?
A. key person insurance
B. BOE insurance
C. group life policy
D. industrial life insurance - ANSWER key person insurance
Which of the following is true about a decreasing term life policy?
A. The cash value of the policy decreases over time.
B. The face amount reaches zero at policy expiration.
C. Premiums decrease over time but the amount of coverage remains constant.
D. Commonly sold as a rider to another type of policy to provide an additional death benefit. -
ANSWER The face amount reaches zero at policy expiration.
For an individual long-term care policy there is an annual dollar limit for tax deductions that is
based on which of the following?
A. Age
B. Cost of care
C. Policy value
D. Premium cost - ANSWER Age
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 soon thereafter as is reasonably possible?
A. evidence of insurability
B. notice of claim
C. proof of loss
D. supporting evidence for the claim - ANSWER notice of claim
Managed care plans increase efficiency by all of the following means EXCEPT
A. increasing beneficiary cost sharing.
B. controlling inpatient admissions and length of stay.
C. selectively contracting with health care providers.
, D. transferring the management of costs to the insureds. - ANSWER transferring the
management of costs to the insureds.
Which of the following is an example of a premium payment mode?
A. annual premium payment
B. payment by check
C. automatic deduction of premium
D. $200 per policy year - ANSWER annual premium payment
What is the waiver of premium provision?
A. In a long term care contract, the premium is waived after the insured has been confined for a
specific period of time.
B. In a life insurance policy, the insured may request a waiver of premium during times of
financial hardship.
C. In a disability policy, the premium is waived after the insurance benefit period has been
passed
D. In a health insurance policy, the premium is waived after the maximum out of pocket has been
paid by the insured. - ANSWER In a long term care contract, the premium is waived after the
insured has been confined for a specific period of time.
Which of the following amends the Social Security Act to make Medicare secondary to group
health plans?
A. ADEA
B. ERISA
C. OBRA
D. TEFRA - ANSWER TEFRA
How long after being entitled to disability benefits will an individual be eligible to receive
Medicare benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65 - ANSWER 2 years
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the total of premiums paid up to
the current point
B. a provision that allows the insured to cancel the policy in the first two years and have
premiums refunded
Exam with 100% Q&A (Grade
A+)
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT
A. character.
B. reputation.
C. credit information.
D. medical underwriting exam. - ANSWER medical underwriting exam.
All of the following are TRUE regarding incomplete applications EXCEPT
A. the underwriting department will return the application to the agent.
B. the applicant will have to wait additional time before coverage begins.
C. there will be a delay in the underwriting process.
D. the incomplete application can be accepted with the missing information added later. -
ANSWER the incomplete application can be accepted with the missing information added later.
Compared to basic hospital, medical and surgical policies, which type of insurance provides
broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?
A. medicaid insurance
B. major medical insurance
C. supplemental medical insurance
D. long term care insurance - ANSWER major medical insurance
Which type of rider reimburses health and social service expenses incurred in a convalescent or
nursing home facility?
A. accelerated benefits rider
B. assisted living rider
,C. terminal illness rider
D. long term care rider - ANSWER long term care rider
All of the following are characteristics of COBRA EXCEPT
A. qualifying events.
B. notification statements.
C. continuation of coverage.
D. change in medical privacy procedures. - ANSWER change in medical privacy procedures.
What type of insurance should a company purchase if it wants to insure the life of its CEO?
A. key person insurance
B. BOE insurance
C. group life policy
D. industrial life insurance - ANSWER key person insurance
Which of the following is true about a decreasing term life policy?
A. The cash value of the policy decreases over time.
B. The face amount reaches zero at policy expiration.
C. Premiums decrease over time but the amount of coverage remains constant.
D. Commonly sold as a rider to another type of policy to provide an additional death benefit. -
ANSWER The face amount reaches zero at policy expiration.
For an individual long-term care policy there is an annual dollar limit for tax deductions that is
based on which of the following?
A. Age
B. Cost of care
C. Policy value
D. Premium cost - ANSWER Age
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 soon thereafter as is reasonably possible?
A. evidence of insurability
B. notice of claim
C. proof of loss
D. supporting evidence for the claim - ANSWER notice of claim
Managed care plans increase efficiency by all of the following means EXCEPT
A. increasing beneficiary cost sharing.
B. controlling inpatient admissions and length of stay.
C. selectively contracting with health care providers.
, D. transferring the management of costs to the insureds. - ANSWER transferring the
management of costs to the insureds.
Which of the following is an example of a premium payment mode?
A. annual premium payment
B. payment by check
C. automatic deduction of premium
D. $200 per policy year - ANSWER annual premium payment
What is the waiver of premium provision?
A. In a long term care contract, the premium is waived after the insured has been confined for a
specific period of time.
B. In a life insurance policy, the insured may request a waiver of premium during times of
financial hardship.
C. In a disability policy, the premium is waived after the insurance benefit period has been
passed
D. In a health insurance policy, the premium is waived after the maximum out of pocket has been
paid by the insured. - ANSWER In a long term care contract, the premium is waived after the
insured has been confined for a specific period of time.
Which of the following amends the Social Security Act to make Medicare secondary to group
health plans?
A. ADEA
B. ERISA
C. OBRA
D. TEFRA - ANSWER TEFRA
How long after being entitled to disability benefits will an individual be eligible to receive
Medicare benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65 - ANSWER 2 years
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the total of premiums paid up to
the current point
B. a provision that allows the insured to cancel the policy in the first two years and have
premiums refunded
