PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE EXAM 17-
55;QUESTIONS WITH COMPLETE SOLUTION.
Which policy provision permits the policy owner to take a specified
number of days to examine the contract, and allows for cancellation and a
full refund if the policy owner rejects the terms or costs? ~CORRECT
ANSWER~Free Look
When will a policy pay on a UCR basis? ~CORRECT ANSWER~When
particular benefits are not listed on a payment schedule
Which type of rider reimburses health and social service expenses incurred
in a convalescent or nursing home facility? ~CORRECT ANSWER~long
term care rider
Which of the following is exempted from the incontestability provision in
insurance policies? ~CORRECT ANSWER~Fraudulent misstatements
What does first dollar coverage mean? ~CORRECT ANSWER~As soon as
covered medical expenses are incurred, the policy begins to pay
What is the waiver of premium provision? ~CORRECT ANSWER~In a
long term care contract, the premium is waived after the insured has been
confined for a specific period of time
, According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
~CORRECT ANSWER~for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? ~CORRECT
ANSWER~the actual amount of the annuity benefit cannot be determined
in advance
When a policy or certificate containing an accelerated benefit provision is
applied for or delivered, the producer is responsible for providing that
applicant a summary of coverage that includes all of the following EXCEPT
~CORRECT ANSWER~a detailed and comprehensive summary of the
accelerated benefit
which one of the following represents an advantage of obtaining a policy
loan versus a withdrawal? ~CORRECT ANSWER~the loan is not taxed
while a withdrawal is taxed for amounts above the contract cost basis
How does a noncancelable policy differ from a guaranteed renewable
policy? ~CORRECT ANSWER~with the non cancelable policy the insurer
may increase premiums only based on the terms of the policy
What does it mean if a health policy is conditionally renewable?
~CORRECT ANSWER~Insurer may elect NOT to renew only under the
conditions specified in the policy
55;QUESTIONS WITH COMPLETE SOLUTION.
Which policy provision permits the policy owner to take a specified
number of days to examine the contract, and allows for cancellation and a
full refund if the policy owner rejects the terms or costs? ~CORRECT
ANSWER~Free Look
When will a policy pay on a UCR basis? ~CORRECT ANSWER~When
particular benefits are not listed on a payment schedule
Which type of rider reimburses health and social service expenses incurred
in a convalescent or nursing home facility? ~CORRECT ANSWER~long
term care rider
Which of the following is exempted from the incontestability provision in
insurance policies? ~CORRECT ANSWER~Fraudulent misstatements
What does first dollar coverage mean? ~CORRECT ANSWER~As soon as
covered medical expenses are incurred, the policy begins to pay
What is the waiver of premium provision? ~CORRECT ANSWER~In a
long term care contract, the premium is waived after the insured has been
confined for a specific period of time
, According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
~CORRECT ANSWER~for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? ~CORRECT
ANSWER~the actual amount of the annuity benefit cannot be determined
in advance
When a policy or certificate containing an accelerated benefit provision is
applied for or delivered, the producer is responsible for providing that
applicant a summary of coverage that includes all of the following EXCEPT
~CORRECT ANSWER~a detailed and comprehensive summary of the
accelerated benefit
which one of the following represents an advantage of obtaining a policy
loan versus a withdrawal? ~CORRECT ANSWER~the loan is not taxed
while a withdrawal is taxed for amounts above the contract cost basis
How does a noncancelable policy differ from a guaranteed renewable
policy? ~CORRECT ANSWER~with the non cancelable policy the insurer
may increase premiums only based on the terms of the policy
What does it mean if a health policy is conditionally renewable?
~CORRECT ANSWER~Insurer may elect NOT to renew only under the
conditions specified in the policy
