CA PSI SITE LIFE ACCIDENT AND HEALTH OR SICKNESS EXAM (LIFE
AGENT) STUDY GUIDE EXAM COMPLETE 200+ PRACTICE QUESTIONS
AND CORRECT DETAILS (VERIFIED ANSWERS)
Q1: What type of life insurance policy provides coverage for a specified period and pays a death
benefit only if the insured dies during that period?
A1: Term Life Insurance
Q2: In health insurance, what is the purpose of the elimination period?
A2: It is the waiting period before benefits begin after a disability or sickness.
Q3: Which provision allows a policyowner to return a life insurance policy within a certain
number of days for a full refund?
A3: Free-Look Period
Q4: What does the incontestability clause in a life insurance policy state?
A4: The insurer cannot contest the policy after it has been in force for a specified time, usually
two years, except for nonpayment of premiums.
Q5: What is insurable interest?
A5: The policyowner must have a legitimate interest in the continued life or health of the
insured at the time the policy is purchased.
Q6: What type of health insurance plan requires members to select a primary care physician
and obtain referrals to see specialists?
A6: Health Maintenance Organization (HMO)
Q7: Which of the following is NOT typically covered by accident insurance?
A) Medical expenses due to injury
B) Sickness treatment
C) Disability caused by accident
D) Accidental death benefits
A7: B) Sickness treatment (Accident insurance generally excludes sickness)
,Q8: What type of life insurance allows the policyowner to adjust the premium and death benefit?
A8: Universal Life Insurance
Q9: Which term describes a policy’s face amount or the amount payable upon the insured’s
death?
A9: Death Benefit
Q10: What is a waiver of premium rider in a life insurance policy?
A10: It waives premiums if the insured becomes totally disabled.
Q11: Which health insurance plan provides the greatest freedom to choose any doctor or
hospital?
A11: Preferred Provider Organization (PPO)
Q12: What is a copayment?
A12: A fixed amount a policyholder pays for a covered service, usually at the time of service.
Q13: What does the grace period in a life insurance policy allow?
A13: Extra time after a missed premium payment during which the policy remains in force.
Q14: How often can dividends be paid to a participating life insurance policyowner?
A14: Typically annually.
Q15: What is the purpose of the Medical Information Bureau (MIB)?
A15: To share information about applicants' health history to prevent fraud.
, Q16: Which of the following is a nonforfeiture option?
A) Cash surrender
B) Waiver of premium
C) Accelerated benefits
D) Double indemnity
A16: A) Cash surrender
Q17: What does a disability income insurance policy pay?
A17: A portion of lost income due to disability.
Q18: What does the term “coinsurance” refer to in health insurance?
A18: The percentage of costs the insured pays after the deductible is met.
Q19: What does a term life policy lack that whole life policies provide?
A19: Cash value accumulation.
Q20: What is the difference between “pure” and “modified” life insurance?
A20: Modified life insurance offers lower premiums initially, increasing later.
Q21: What is the primary purpose of long-term care insurance?
A21: To cover costs of extended custodial care.
Q22: What is the “free look” period usually required by California law for life insurance?
A22: 10 days
Q23: What does the incontestability clause protect against?
A23: Claims based on misstatements after the policy has been in force for a certain time.
Q24: What kind of insurance protects against loss of income due to illness or injury?
A24: Disability Insurance
AGENT) STUDY GUIDE EXAM COMPLETE 200+ PRACTICE QUESTIONS
AND CORRECT DETAILS (VERIFIED ANSWERS)
Q1: What type of life insurance policy provides coverage for a specified period and pays a death
benefit only if the insured dies during that period?
A1: Term Life Insurance
Q2: In health insurance, what is the purpose of the elimination period?
A2: It is the waiting period before benefits begin after a disability or sickness.
Q3: Which provision allows a policyowner to return a life insurance policy within a certain
number of days for a full refund?
A3: Free-Look Period
Q4: What does the incontestability clause in a life insurance policy state?
A4: The insurer cannot contest the policy after it has been in force for a specified time, usually
two years, except for nonpayment of premiums.
Q5: What is insurable interest?
A5: The policyowner must have a legitimate interest in the continued life or health of the
insured at the time the policy is purchased.
Q6: What type of health insurance plan requires members to select a primary care physician
and obtain referrals to see specialists?
A6: Health Maintenance Organization (HMO)
Q7: Which of the following is NOT typically covered by accident insurance?
A) Medical expenses due to injury
B) Sickness treatment
C) Disability caused by accident
D) Accidental death benefits
A7: B) Sickness treatment (Accident insurance generally excludes sickness)
,Q8: What type of life insurance allows the policyowner to adjust the premium and death benefit?
A8: Universal Life Insurance
Q9: Which term describes a policy’s face amount or the amount payable upon the insured’s
death?
A9: Death Benefit
Q10: What is a waiver of premium rider in a life insurance policy?
A10: It waives premiums if the insured becomes totally disabled.
Q11: Which health insurance plan provides the greatest freedom to choose any doctor or
hospital?
A11: Preferred Provider Organization (PPO)
Q12: What is a copayment?
A12: A fixed amount a policyholder pays for a covered service, usually at the time of service.
Q13: What does the grace period in a life insurance policy allow?
A13: Extra time after a missed premium payment during which the policy remains in force.
Q14: How often can dividends be paid to a participating life insurance policyowner?
A14: Typically annually.
Q15: What is the purpose of the Medical Information Bureau (MIB)?
A15: To share information about applicants' health history to prevent fraud.
, Q16: Which of the following is a nonforfeiture option?
A) Cash surrender
B) Waiver of premium
C) Accelerated benefits
D) Double indemnity
A16: A) Cash surrender
Q17: What does a disability income insurance policy pay?
A17: A portion of lost income due to disability.
Q18: What does the term “coinsurance” refer to in health insurance?
A18: The percentage of costs the insured pays after the deductible is met.
Q19: What does a term life policy lack that whole life policies provide?
A19: Cash value accumulation.
Q20: What is the difference between “pure” and “modified” life insurance?
A20: Modified life insurance offers lower premiums initially, increasing later.
Q21: What is the primary purpose of long-term care insurance?
A21: To cover costs of extended custodial care.
Q22: What is the “free look” period usually required by California law for life insurance?
A22: 10 days
Q23: What does the incontestability clause protect against?
A23: Claims based on misstatements after the policy has been in force for a certain time.
Q24: What kind of insurance protects against loss of income due to illness or injury?
A24: Disability Insurance
