PSI Life, Accident, and Health –Exam with
Complete Solutions.
Annuity ~CORRECT ANSWER~✓✓-A contract between a person and an
insurance company that requires the insurer to make payments to you.
-You buy an annuity by making either a single payment or a series of payments
-Annuity Death benefits are NOT tax deductible or taxfree
Dividends ~CORRECT ANSWER~✓✓-Declared by the board of directors and
cannot be guaranteed
-A sum of money paid regularly by a company to its shareholders out of its
profits
Stock Insurers ~CORRECT ANSWER~✓✓-Owned by the stockholders who elect
the board of directors.
-Profits are paid to the stockholders.
Frequency ~CORRECT ANSWER~✓✓-When the pricing principle is defined in a
disability policy by a financial loss in a certain group occuring over a certain
period of time.
Beneficiary ~CORRECT ANSWER~✓✓One who receives benefits
Medi-Cal ~CORRECT ANSWER~✓✓health care program for the poor
,Medicare ~CORRECT ANSWER~✓✓A - provides coverage for hospital services,
free to those who reach 65)
B - provides coverage for doctor services (optional)
C - does NOT cover prescription drugs
D - Prescription Drugs
Utmost Good Faith ~CORRECT ANSWER~✓✓-Allows each party to rely on the
representation made by other party
Patient Protection & Affordable Care Act (PPACA) ~CORRECT
ANSWER~✓✓This is the health care reform law. Focuses on reform of the
private health insurance market; providing better coverage for those with pre-
existing conditions; improving prescription drug coverage in Medicare.
Period ~CORRECT ANSWER~✓✓Probationary-
Elimination- the waiting period included in disability income policies
Grace-
Waiting (deductible)- The period of time the insured is not eligible for benefits
once they become disabled (30, 60, 90days)
Coinsurance ~CORRECT ANSWER~✓✓-Feature of Major Medical insurance
-Defined as sharing the loss after the deductible has been satisfied
-Usually expressed as percentage sharing of the loss between the insurer and the
insured
-Insurer pays the larger percentage, such as 90/10
, Gatekeeper ~CORRECT ANSWER~✓✓-Primary Care Physician
-Cannot be a specialist, must be a general practice doctor.
COBRA ~CORRECT ANSWER~✓✓-Consolidated Omnibus Budget
Reconciliation Act
-A law that allows people who leave employment to continue their health
insurance under the company plan for a limited period of time
HIPCAP ~CORRECT ANSWER~✓✓-Free counseling
Coordination of Benefits ~CORRECT ANSWER~✓✓-Provision that applies in
group insurance when an insured has coverage under multiple plans at one time.
-Coordination of benefits is included in all group health insurance policies in
order to reinforce the principle of indemnity and determine which coverage is
primary, which is the coverage the insured has where they work.
Keogh plan ~CORRECT ANSWER~✓✓-A retirement plan for the self-employed
The Social Security Blackout ~CORRECT ANSWER~✓✓-Period of time when
surviving family members are NOT eligible for Social Security survivors benefits
-Begins at 16
-Ends at 60
Complete Solutions.
Annuity ~CORRECT ANSWER~✓✓-A contract between a person and an
insurance company that requires the insurer to make payments to you.
-You buy an annuity by making either a single payment or a series of payments
-Annuity Death benefits are NOT tax deductible or taxfree
Dividends ~CORRECT ANSWER~✓✓-Declared by the board of directors and
cannot be guaranteed
-A sum of money paid regularly by a company to its shareholders out of its
profits
Stock Insurers ~CORRECT ANSWER~✓✓-Owned by the stockholders who elect
the board of directors.
-Profits are paid to the stockholders.
Frequency ~CORRECT ANSWER~✓✓-When the pricing principle is defined in a
disability policy by a financial loss in a certain group occuring over a certain
period of time.
Beneficiary ~CORRECT ANSWER~✓✓One who receives benefits
Medi-Cal ~CORRECT ANSWER~✓✓health care program for the poor
,Medicare ~CORRECT ANSWER~✓✓A - provides coverage for hospital services,
free to those who reach 65)
B - provides coverage for doctor services (optional)
C - does NOT cover prescription drugs
D - Prescription Drugs
Utmost Good Faith ~CORRECT ANSWER~✓✓-Allows each party to rely on the
representation made by other party
Patient Protection & Affordable Care Act (PPACA) ~CORRECT
ANSWER~✓✓This is the health care reform law. Focuses on reform of the
private health insurance market; providing better coverage for those with pre-
existing conditions; improving prescription drug coverage in Medicare.
Period ~CORRECT ANSWER~✓✓Probationary-
Elimination- the waiting period included in disability income policies
Grace-
Waiting (deductible)- The period of time the insured is not eligible for benefits
once they become disabled (30, 60, 90days)
Coinsurance ~CORRECT ANSWER~✓✓-Feature of Major Medical insurance
-Defined as sharing the loss after the deductible has been satisfied
-Usually expressed as percentage sharing of the loss between the insurer and the
insured
-Insurer pays the larger percentage, such as 90/10
, Gatekeeper ~CORRECT ANSWER~✓✓-Primary Care Physician
-Cannot be a specialist, must be a general practice doctor.
COBRA ~CORRECT ANSWER~✓✓-Consolidated Omnibus Budget
Reconciliation Act
-A law that allows people who leave employment to continue their health
insurance under the company plan for a limited period of time
HIPCAP ~CORRECT ANSWER~✓✓-Free counseling
Coordination of Benefits ~CORRECT ANSWER~✓✓-Provision that applies in
group insurance when an insured has coverage under multiple plans at one time.
-Coordination of benefits is included in all group health insurance policies in
order to reinforce the principle of indemnity and determine which coverage is
primary, which is the coverage the insured has where they work.
Keogh plan ~CORRECT ANSWER~✓✓-A retirement plan for the self-employed
The Social Security Blackout ~CORRECT ANSWER~✓✓-Period of time when
surviving family members are NOT eligible for Social Security survivors benefits
-Begins at 16
-Ends at 60
