PSI LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM QUESTIONS AND ANSWERS

PSI LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM
QUESTIONS AND ANSWERS

1. Under the misstatement of age or gender provision, what happens if it is determined
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at death that the insured's age or gender was misstated on a life insurance policy applic
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ation?: Benefits are adjusted to an amount that the premium would have purchased at the
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correct age or gender. e e e



2. Which of the following must be given to the insurer within 20 days after oc-
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ecurrence or commencement of any loss covered by the policy, or as thereafter as is reason
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ably possible?: Notice of claim.
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3. When will a policy pay on a UCR basis?: When particular benefits are not listed on a paymen
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t schedule.
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4. All of the following are non-forfeiture options EXCEPT: Cash dividend option.
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5. What happens when the lifetime maximum benefit limit has been reached?-
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: The insured will pay all of the remaining medial costs for as long as the policy is in force.
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6. Whose responsibility is it to make sure that the company is notified of a death claim at t
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he earliest possible opportunity (in most cases)?: The producer.
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7. What is the waiver of premium provision?: In a long term care contract, the premium is wa
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ived after the insured has been confined for a specific period of time.
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8. All of the following are common exclusions from loss found in disability income polici
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es EXCEPT for that incurred while?: Committing a misdemeanor
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9. Which is a disadvantage to a flexible premium annuity?: The actual amount of the annuit
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y benefit cannot be determined in advance.
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10. What does coninsurance mean?: The insurer and the insured share expenses over the ded
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uctible.
11. Under normal conditions which of the following is TRUE for proof of loss when a single
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loss is claimed?: The insured has 90 days from the date of loss to provide proof of loss.
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12. Which one of the following represents an advantage of obtaining a policy loan versus a
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ewithdrawal?: The loan is not taxed while a withdrawal is taxed for amounts above the contrac
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t cost basis.
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, 13. All of the following statements define preexisting conditions EXCEPT?: -
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eAny chronic health condition that presents symptoms and which was unknown at the time o
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f application.
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14. Which is the difference between participating and non-participating?: Par-
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eticipating policies pay dividends while non-participating policies do not.
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15. How does the per captia rule apply to proceeds from a life insurance policy?: The
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proceeds are divided equally among living primary beneficiaries.
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16. How does a noncancelable policy differ from a guaranteed renewable policy?: With
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the noncancelable policy the insurer may increase premiums only based on the terms of t
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he policy. e




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