PSI Life, Accident, and Health Practice Exam Actual questions and
answers A+ Grade
A group conversion option may be used in all the following instances EXCEPT
- correct answer a life-changing event, such as marriage, divorce, or childbirth.
Which is the primary purpose of Health Reimbursement Accounts (HRAs)?
- correct answer To assist covered employees with the payment of medical expenses on a high
deductible plan funded through pre-tax contributions.
All of the following are characteristics of variable whole life EXCEPT
- correct answer there is no guaranteed minimum death benefit.
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in
the event of a disability?
- correct answer When there is a buy-sell agreement funded with life insurance to buyout the interest of
a deceased owner or partner.
Which of the following is TRUE of a point of service plan?
- correct answer A patient's care is coordinated by an in-network primary care physician.
Which of the following coverage types pays a monthly cash benefit following the elimination period for
total disability due to accident or sickness?
- correct answer Disability income insuran
Which of the following is TRUE of an equity-indexed annuity?
- correct answer It has a guaranteed minimum interest rate.
All of the following are characteristics of COBRA EXCEPT
- correct answer change in medical privacy procedures.
, In which of the following does a covered employee agree to a reduction in compensation so the amount
can be used to cover medical expenses?
- correct answer Flexible Spending Account (FSA)
Which problem was universal life insurance designed to address?
- correct answer low interest rates during periods of high inflation
A basic vision care package includes all of the following EXCEPT
- correct answer safety glasses
Which of the following is the most common method to supplement Medicare coverage?
- correct answer Coverage offered by private insurers
Which of the following is TRUE for a flexible premium annuity?
- correct answer The purchaser has the option to vary the amount of each premium payment falling
between a minimum and maximum amount.
Compared to basic hospital, medical and surgical policies, which type of insurance provides broader
coverage, fewer gaps, higher individual benefits, and higher policy maximums?
- correct answer major medical insurance
States generally define a true "group" for insurance as requiring a minimum of how many participants?
- correct answer 10
Which of the following is defined as the dollar amount beyond which the insured no longer participates
in payment of medical expenses?
- correct answer Stop Loss Limit
Which is the major reason why long term care insurance is becoming increasingly important?
- correct answer As life expectancy increases, the chances of needing long term care also increase
Which of the following is TRUE of the limited pay whole life policy?
- correct answer Coverage continues after the policy is paid-up.
answers A+ Grade
A group conversion option may be used in all the following instances EXCEPT
- correct answer a life-changing event, such as marriage, divorce, or childbirth.
Which is the primary purpose of Health Reimbursement Accounts (HRAs)?
- correct answer To assist covered employees with the payment of medical expenses on a high
deductible plan funded through pre-tax contributions.
All of the following are characteristics of variable whole life EXCEPT
- correct answer there is no guaranteed minimum death benefit.
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in
the event of a disability?
- correct answer When there is a buy-sell agreement funded with life insurance to buyout the interest of
a deceased owner or partner.
Which of the following is TRUE of a point of service plan?
- correct answer A patient's care is coordinated by an in-network primary care physician.
Which of the following coverage types pays a monthly cash benefit following the elimination period for
total disability due to accident or sickness?
- correct answer Disability income insuran
Which of the following is TRUE of an equity-indexed annuity?
- correct answer It has a guaranteed minimum interest rate.
All of the following are characteristics of COBRA EXCEPT
- correct answer change in medical privacy procedures.
, In which of the following does a covered employee agree to a reduction in compensation so the amount
can be used to cover medical expenses?
- correct answer Flexible Spending Account (FSA)
Which problem was universal life insurance designed to address?
- correct answer low interest rates during periods of high inflation
A basic vision care package includes all of the following EXCEPT
- correct answer safety glasses
Which of the following is the most common method to supplement Medicare coverage?
- correct answer Coverage offered by private insurers
Which of the following is TRUE for a flexible premium annuity?
- correct answer The purchaser has the option to vary the amount of each premium payment falling
between a minimum and maximum amount.
Compared to basic hospital, medical and surgical policies, which type of insurance provides broader
coverage, fewer gaps, higher individual benefits, and higher policy maximums?
- correct answer major medical insurance
States generally define a true "group" for insurance as requiring a minimum of how many participants?
- correct answer 10
Which of the following is defined as the dollar amount beyond which the insured no longer participates
in payment of medical expenses?
- correct answer Stop Loss Limit
Which is the major reason why long term care insurance is becoming increasingly important?
- correct answer As life expectancy increases, the chances of needing long term care also increase
Which of the following is TRUE of the limited pay whole life policy?
- correct answer Coverage continues after the policy is paid-up.
