PSI INSURANCE EXAM 2024 ACTUAL EXAM
VERSIONS COMPLETE QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) GRADED A+
What type of insurance should a company purchase if it wants to insure the life of
its CEO? - ans -key person insurance
Which is the major reason why long term care insurance is becoming increasingly
important? - ans -As life expectancy increases, the chances of needing long term
care also increase.
Which of the following requires the claim information to be submitted to the
insurer prior to treatment to determine whether the treatment is covered and
how much the insured's plan will pay? - ans -precertification provision
Which policy provision permits the policyowner to take a specified number of
days to examine the contract, and allows for cancellation and a full refund if the
policyowner rejects the terms or costs? - ans -free look
A life insurance policy may be returned for cancellation and full refund if it is
returned NO later than - ans -20 days after receipt by the policyholder.
Which of the following features makes Universal Life Insurance different from
other forms of Whole Life Insurance? - ans -premium schedules
Which of the following is TRUE in a key employee life insurance policy? - ans -The
corporation is the applicant and policy holder. The employee is the insured.
How are issues of ambiguity usually resolved because insurance contracts are
contracts of adhesion? - ans -in favor of the insured because the insurance
company drafts the language in the contract
,Which of the following is a characteristic of indexed universal life insurance? - ans
-A portion of the cash value is tied to an equity index account linked to a
stipulated stock index.
Managed care plans increase efficiency by all of the following means EXCEPT - ans
-transferring the management of costs to the insureds.
Which type of policy allows the policyowner the option to change the face value,
amount of premium, length of coverage, and type of coverage without changing
policies? - ans -adjustable life
Which of the following policy loans is a provision in which an amount equal to the
premium due is subtracted from the cash value to pay the premium and prevent a
lapse of the policy? - ans -automatic premium loan
All of the following are ownership rights EXCEPT - ans -switching the policy from
one insured to another
Which of the following describes a jumping juvenile policy? - ans -The face
amount increases up to five times the original face amount when the insured
reaches a specified age.
All of the following are required signatures on a life insurance application EXCEPT
- ans -the minor in a juvenile policy.
What is the tax advantage of a non-qualified annuity? - ans -Growth is tax
deferred.
Under an individual policy, an insured who CANNOT perform the duties of his/her
own occupation for a specific period of time is - ans -totally disabled.
A few small employers in the same industry join together to become eligible for
group insurance. The type of health insurance they have created for each other is
known as - ans -Multiple Employer Trust (MET).
Which of the following is an example of a moral hazard? - ans -filing a false
insurance claim
, According to the time of payment of claims provision, the insurer must make the
payment immediately after receiving proof of loss EXCEPT - ans -for claims
involving periodic payments.
When are dividends paid from a participating policy considered taxable? - ans -
when the amount received exceeds the total amount of premiums paid for the
policy
Which whole life policy premium type is the most common? - ans -continuous
premium
Which of the following is the time limit on certain defenses after which the policy
becomes incontestable? - ans -2 years
The accumulation period in an annuity is the period in which - ans -interest is
credited on a tax-deferred basis.
All of the following are disadvantages to an annually renewable term life policy
EXCEPT - ans -the living benefits decrease over time.
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ans -Fair Credit Reporting Act
Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness? - ans -disability
income insurance
Which of the following, by definition, provides benefits for expenses incurred as a
result of in-hospital medical treatment and surgery as well as certain outpatient
expenses such as doctor's visits, laboratory tests, and diagnostic services? - ans -
hospitalization insurance
If a company provides group disability insurance to its employees, which of the
following may be tax-deductible? - ans -the premiums paid by the company as a
business expense
VERSIONS COMPLETE QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) GRADED A+
What type of insurance should a company purchase if it wants to insure the life of
its CEO? - ans -key person insurance
Which is the major reason why long term care insurance is becoming increasingly
important? - ans -As life expectancy increases, the chances of needing long term
care also increase.
Which of the following requires the claim information to be submitted to the
insurer prior to treatment to determine whether the treatment is covered and
how much the insured's plan will pay? - ans -precertification provision
Which policy provision permits the policyowner to take a specified number of
days to examine the contract, and allows for cancellation and a full refund if the
policyowner rejects the terms or costs? - ans -free look
A life insurance policy may be returned for cancellation and full refund if it is
returned NO later than - ans -20 days after receipt by the policyholder.
Which of the following features makes Universal Life Insurance different from
other forms of Whole Life Insurance? - ans -premium schedules
Which of the following is TRUE in a key employee life insurance policy? - ans -The
corporation is the applicant and policy holder. The employee is the insured.
How are issues of ambiguity usually resolved because insurance contracts are
contracts of adhesion? - ans -in favor of the insured because the insurance
company drafts the language in the contract
,Which of the following is a characteristic of indexed universal life insurance? - ans
-A portion of the cash value is tied to an equity index account linked to a
stipulated stock index.
Managed care plans increase efficiency by all of the following means EXCEPT - ans
-transferring the management of costs to the insureds.
Which type of policy allows the policyowner the option to change the face value,
amount of premium, length of coverage, and type of coverage without changing
policies? - ans -adjustable life
Which of the following policy loans is a provision in which an amount equal to the
premium due is subtracted from the cash value to pay the premium and prevent a
lapse of the policy? - ans -automatic premium loan
All of the following are ownership rights EXCEPT - ans -switching the policy from
one insured to another
Which of the following describes a jumping juvenile policy? - ans -The face
amount increases up to five times the original face amount when the insured
reaches a specified age.
All of the following are required signatures on a life insurance application EXCEPT
- ans -the minor in a juvenile policy.
What is the tax advantage of a non-qualified annuity? - ans -Growth is tax
deferred.
Under an individual policy, an insured who CANNOT perform the duties of his/her
own occupation for a specific period of time is - ans -totally disabled.
A few small employers in the same industry join together to become eligible for
group insurance. The type of health insurance they have created for each other is
known as - ans -Multiple Employer Trust (MET).
Which of the following is an example of a moral hazard? - ans -filing a false
insurance claim
, According to the time of payment of claims provision, the insurer must make the
payment immediately after receiving proof of loss EXCEPT - ans -for claims
involving periodic payments.
When are dividends paid from a participating policy considered taxable? - ans -
when the amount received exceeds the total amount of premiums paid for the
policy
Which whole life policy premium type is the most common? - ans -continuous
premium
Which of the following is the time limit on certain defenses after which the policy
becomes incontestable? - ans -2 years
The accumulation period in an annuity is the period in which - ans -interest is
credited on a tax-deferred basis.
All of the following are disadvantages to an annually renewable term life policy
EXCEPT - ans -the living benefits decrease over time.
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ans -Fair Credit Reporting Act
Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness? - ans -disability
income insurance
Which of the following, by definition, provides benefits for expenses incurred as a
result of in-hospital medical treatment and surgery as well as certain outpatient
expenses such as doctor's visits, laboratory tests, and diagnostic services? - ans -
hospitalization insurance
If a company provides group disability insurance to its employees, which of the
following may be tax-deductible? - ans -the premiums paid by the company as a
business expense
