PSI LIFE, ACCIDENT, AND HEALTH 11-35 PRACTICE TEST ACTUAL
QUESTIONS AND ANSWERS 2027 UPDATE 100% CORRECT
Question 1.
Which type of receipt makes the insurer liable for the risk from the date of application,
regardless of the applicant's insurability? -Inspection receipt -temporary receipt
-conditional receipt -binding receipt
Correct Answer: binding receipt
Question 2.
Which of the following occurs immediately after the application is submitted and the initial
premium is paid? -the applicant's references -insurance goes into effect -the beneficiaries
are selected -the underwriting process begins
Correct Answer: The underwriting process begins
Question 3.
The entire contract includes the actual policy and -certification of authority - application
-consideration -representations
Correct Answer: application
Question 4.
Which of the following is TRUE of a point of service plan? -A patients care is coordinated by
an in-network primary care physician -a patient may see any provider for any condition for
the same cost and does not need to consult a primary care physician -patients must
submit claim forms for all services received -the difference in cost between in-network and
out-of-network is relatively small
Correct Answer: A patient may see any provider for any condition for the same
cost and does not need to consult a primary care physician
Question 5.
Which of the following may be thought of as a time deductible rather a dollar deductible in
a disability in-come policy because benefits are not payable during a time? -benefit period
-elimination period -probationary period -grace period
Correct Answer: Elimination Period
Question 6.
What is the maximum to file legal action -10 years -3 years -5 years -1 year
Correct Answer: amount of time the insured has 3 years against the insurer?
, Question 7.
How are issues of insurance contracts -in favor of the insured ny drafts the language -in
favor of the insurer misrepresentation -in favor of the insurer does not adherer -in favor of
the insured often do not adhere ciples
Correct Answer: ambiguity usually resolved because In favor of the insured
be-are contracts to adhesion? cause the insurance company drafts the language
because the insurance compain the contract. because most issues arise from on
the part of the insured because the insured frequently to the requirements of
the contract because insurance companies to the more specific contract prin-
Question 8.
Which of the following tage of HIPPA? -tax deductible of -increased coverage -portability
-qualified beneficiaries
Correct Answer: is considered the major advan- Portability certain medical
expenses
Question 9.
When does insurable interest come into play in a life insurance policy? -When the applicant
for the policy is not insured - when the free look period ends -when a beneficiary is
irrevocable -when the charity is named beneficiary of the policy
Correct Answer: When the applicant for the policy is not the insured
Question 10.
Replacement refers to which of the following? -Replacing the original policy with a copy
-replacing an existing policy with a new one -replacing one insured with another -replacing
a beneficiary
Correct Answer: Replacing an existing policy with a new one
Question 11.
How many months be backed from the -1 month -3 months -6 months -12 months
Correct Answer: can a life insurance policy normally 6 months date of
application?
Question 12.
How are term riders used? -To extend the effective dates of coverage -to purchase
insurance on a family member of the originally insured -to purchase term insurance
attached to supplement another life insurance policy -to substitute the term of the
coverage
QUESTIONS AND ANSWERS 2027 UPDATE 100% CORRECT
Question 1.
Which type of receipt makes the insurer liable for the risk from the date of application,
regardless of the applicant's insurability? -Inspection receipt -temporary receipt
-conditional receipt -binding receipt
Correct Answer: binding receipt
Question 2.
Which of the following occurs immediately after the application is submitted and the initial
premium is paid? -the applicant's references -insurance goes into effect -the beneficiaries
are selected -the underwriting process begins
Correct Answer: The underwriting process begins
Question 3.
The entire contract includes the actual policy and -certification of authority - application
-consideration -representations
Correct Answer: application
Question 4.
Which of the following is TRUE of a point of service plan? -A patients care is coordinated by
an in-network primary care physician -a patient may see any provider for any condition for
the same cost and does not need to consult a primary care physician -patients must
submit claim forms for all services received -the difference in cost between in-network and
out-of-network is relatively small
Correct Answer: A patient may see any provider for any condition for the same
cost and does not need to consult a primary care physician
Question 5.
Which of the following may be thought of as a time deductible rather a dollar deductible in
a disability in-come policy because benefits are not payable during a time? -benefit period
-elimination period -probationary period -grace period
Correct Answer: Elimination Period
Question 6.
What is the maximum to file legal action -10 years -3 years -5 years -1 year
Correct Answer: amount of time the insured has 3 years against the insurer?
, Question 7.
How are issues of insurance contracts -in favor of the insured ny drafts the language -in
favor of the insurer misrepresentation -in favor of the insurer does not adherer -in favor of
the insured often do not adhere ciples
Correct Answer: ambiguity usually resolved because In favor of the insured
be-are contracts to adhesion? cause the insurance company drafts the language
because the insurance compain the contract. because most issues arise from on
the part of the insured because the insured frequently to the requirements of
the contract because insurance companies to the more specific contract prin-
Question 8.
Which of the following tage of HIPPA? -tax deductible of -increased coverage -portability
-qualified beneficiaries
Correct Answer: is considered the major advan- Portability certain medical
expenses
Question 9.
When does insurable interest come into play in a life insurance policy? -When the applicant
for the policy is not insured - when the free look period ends -when a beneficiary is
irrevocable -when the charity is named beneficiary of the policy
Correct Answer: When the applicant for the policy is not the insured
Question 10.
Replacement refers to which of the following? -Replacing the original policy with a copy
-replacing an existing policy with a new one -replacing one insured with another -replacing
a beneficiary
Correct Answer: Replacing an existing policy with a new one
Question 11.
How many months be backed from the -1 month -3 months -6 months -12 months
Correct Answer: can a life insurance policy normally 6 months date of
application?
Question 12.
How are term riders used? -To extend the effective dates of coverage -to purchase
insurance on a family member of the originally insured -to purchase term insurance
attached to supplement another life insurance policy -to substitute the term of the
coverage
