PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
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 answer2
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 answer1
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 answer4
life insurance.
,PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
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 answer2
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 answer1
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
,PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
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 answer4
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 answer3
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 answer2
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
, PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
4
It permits greater flexibility to financial institutions than privacy protections enacted in
Gramm-Leach-Bliley Act. - correct answer3
It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
All of the following are TRUE about the rules regarding the sale of life insurance and
annuities to seniors age 65 or older EXCEPT
1
the senior is entitled to have others present during any presentation by an agent, broker
or insurer.
2
all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older
a duty of honesty, good faith, and fair dealing.
3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
4
advance notice must be provided to the senior disclosing and identifying details of the
visit and the agent or broker prior to the scheduled meeting. - correct answer3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
All of the following are a duty of an insurer in regards to claims on file and record
documentation EXCEPT
1
maintaining claim data so that an insurer shall be able to provide the claim number, line
of coverage, and other pertinent data.
2
recording the date the licensee received, date(s) the licensee processed and date the
licensee transmitted or mailed every material and relevant document in the file.
3
maintaining any sales material, which had a material impact on the claims process.
4
maintaining claim files that are accessible, legible, and claim of duplication. - correct
answer3
maintaining any sales material, which had a material impact on the claims process.
"Person" means all of the following EXCEPT
Questions And Answers Graded A
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 answer2
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 answer1
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 answer4
life insurance.
,PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
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 answer2
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 answer1
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
,PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
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 answer4
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 answer3
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 answer2
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
, PSI Life, Accident, Health Practice Exam
Questions And Answers Graded A
It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
4
It permits greater flexibility to financial institutions than privacy protections enacted in
Gramm-Leach-Bliley Act. - correct answer3
It provides greater privacy protections than those provided in the federal Gramm-Leach-
Bliley Act.
All of the following are TRUE about the rules regarding the sale of life insurance and
annuities to seniors age 65 or older EXCEPT
1
the senior is entitled to have others present during any presentation by an agent, broker
or insurer.
2
all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older
a duty of honesty, good faith, and fair dealing.
3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
4
advance notice must be provided to the senior disclosing and identifying details of the
visit and the agent or broker prior to the scheduled meeting. - correct answer3
the agent, broker or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior's home.
All of the following are a duty of an insurer in regards to claims on file and record
documentation EXCEPT
1
maintaining claim data so that an insurer shall be able to provide the claim number, line
of coverage, and other pertinent data.
2
recording the date the licensee received, date(s) the licensee processed and date the
licensee transmitted or mailed every material and relevant document in the file.
3
maintaining any sales material, which had a material impact on the claims process.
4
maintaining claim files that are accessible, legible, and claim of duplication. - correct
answer3
maintaining any sales material, which had a material impact on the claims process.
"Person" means all of the following EXCEPT
