PSI LIFE, ACCIDENT, AND HEALTH UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
Question 1.
How long after being an individual be eligible
A. immediately
B. 1 year
C. 2 years
D. At age 65
Correct Answer: entitled to disability benefits will 2 years to receive Medicare
benefits?
Question 2.
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the total of premiums paid
up to the current point
B. a provision that allows the insured to cancel the policy in the first two years and have
premiums refunded
C. an increasing amount of term insurance that equals the cash value of the policy at any
point in time
D. a provision that states the insurer must return any premiums paid during the free-look
period
Correct Answer: an increasing amount of term insurance that always equals the
total of premiums paid up to the current point
Question 3.
In a home healthcare benefit, all of the following are eligible expenses EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
C. blood transfusions
D. medical social services;
Correct Answer: blood transfusions
Question 4.
All of the following are classifications of risk EXCEPT
A. substandard
B. preferred
C. declined
D. non-nicotine
Correct Answer: non-nicotine
,Question 5.
Which of the following testability provision
A. fraudulent misstatements
B. pre-existing conditions
C. change in health
D. changes in the
Correct Answer: fraudulent misstatements is exempted from the inconin
insurance policies?
Explanation: insurance code
Question 6.
A group conversion option may be used in all the following instances EXCEPT
A. the termination of the master policy.
B. loss of coverage due to loss of employment.
C. loss of eligibility on the part of a class of insureds.
D. a life-changing event, such as marriage, divorce, or childbirth.
Correct Answer: a life-changing event, such as marriage, divorce, or childbirth.
Question 7.
Which of the following fied plan?
A. defined vesting
B. plan established
C. plan does not meet fits
D. employer contributions penses
Correct Answer: is characteristic of a non-quali- plan does not meet federal
guidelines for tax benefits schedule by the employer federal guidelines for tax
bene-
Explanation: are deductible business ex-
Question 8.
What does it mean if a health policy is conditionally renewable?
A. Insurer may elect NOT to renew based on the health of the insured.
B. Insurer may elect NOT to renew for any reason only on the policy anniversary or
premium due date.
C. Insurer may elect NOT to renew only under conditions specified in the policy.
D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims.
Correct Answer: Insurer may elect NOT to renew only under conditions specified
in the policy.
, Question 9.
Which of the following is TRUE of an equity-indexed annuity?
A. It is a variable annuity.
B. It may decrease in value.
C. It requires a securities license to sell.
D. It has a guaranteed minimum interest rate.
Correct Answer: It has a guaranteed minimum interest rate
Question 10.
During which period of a Disability Income Policy is coverage effective but during which no
benefits will be paid under the policy?
A. benefit period
B. elimination period
C. grace period
D. probationary period
Correct Answer: probationary period
Question 11.
What specific new require of insurance
A. Establish an anti-money
B. Investigate applicants
C. Report large transactions tions
D. To take action against plement the Act.
Correct Answer: procedures does the USA Patriot Act Establish an anti-money
companies? laundering program laundering program for potential terrorist links
by charitable organiza-
Explanation: employees for failure to im-
Question 12.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT
A. character.
B. reputation.
C. credit information.
D. medical underwriting exam.
Correct Answer: medical underwriting exam.
QUESTIONS AND CORRECT ANSWERS
Question 1.
How long after being an individual be eligible
A. immediately
B. 1 year
C. 2 years
D. At age 65
Correct Answer: entitled to disability benefits will 2 years to receive Medicare
benefits?
Question 2.
What is the return of premium rider?
A. an increasing amount of term insurance that always equals the total of premiums paid
up to the current point
B. a provision that allows the insured to cancel the policy in the first two years and have
premiums refunded
C. an increasing amount of term insurance that equals the cash value of the policy at any
point in time
D. a provision that states the insurer must return any premiums paid during the free-look
period
Correct Answer: an increasing amount of term insurance that always equals the
total of premiums paid up to the current point
Question 3.
In a home healthcare benefit, all of the following are eligible expenses EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
C. blood transfusions
D. medical social services;
Correct Answer: blood transfusions
Question 4.
All of the following are classifications of risk EXCEPT
A. substandard
B. preferred
C. declined
D. non-nicotine
Correct Answer: non-nicotine
,Question 5.
Which of the following testability provision
A. fraudulent misstatements
B. pre-existing conditions
C. change in health
D. changes in the
Correct Answer: fraudulent misstatements is exempted from the inconin
insurance policies?
Explanation: insurance code
Question 6.
A group conversion option may be used in all the following instances EXCEPT
A. the termination of the master policy.
B. loss of coverage due to loss of employment.
C. loss of eligibility on the part of a class of insureds.
D. a life-changing event, such as marriage, divorce, or childbirth.
Correct Answer: a life-changing event, such as marriage, divorce, or childbirth.
Question 7.
Which of the following fied plan?
A. defined vesting
B. plan established
C. plan does not meet fits
D. employer contributions penses
Correct Answer: is characteristic of a non-quali- plan does not meet federal
guidelines for tax benefits schedule by the employer federal guidelines for tax
bene-
Explanation: are deductible business ex-
Question 8.
What does it mean if a health policy is conditionally renewable?
A. Insurer may elect NOT to renew based on the health of the insured.
B. Insurer may elect NOT to renew for any reason only on the policy anniversary or
premium due date.
C. Insurer may elect NOT to renew only under conditions specified in the policy.
D. Insurer may elect NOT to review if the insured exceeds the maximum number of claims.
Correct Answer: Insurer may elect NOT to renew only under conditions specified
in the policy.
, Question 9.
Which of the following is TRUE of an equity-indexed annuity?
A. It is a variable annuity.
B. It may decrease in value.
C. It requires a securities license to sell.
D. It has a guaranteed minimum interest rate.
Correct Answer: It has a guaranteed minimum interest rate
Question 10.
During which period of a Disability Income Policy is coverage effective but during which no
benefits will be paid under the policy?
A. benefit period
B. elimination period
C. grace period
D. probationary period
Correct Answer: probationary period
Question 11.
What specific new require of insurance
A. Establish an anti-money
B. Investigate applicants
C. Report large transactions tions
D. To take action against plement the Act.
Correct Answer: procedures does the USA Patriot Act Establish an anti-money
companies? laundering program laundering program for potential terrorist links
by charitable organiza-
Explanation: employees for failure to im-
Question 12.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT
A. character.
B. reputation.
C. credit information.
D. medical underwriting exam.
Correct Answer: medical underwriting exam.
