PSI Life, Accident, and Health 11-35
Practice Test Q & As (Verified Answers)
2026
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 Answers ✅binding receipt
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 Answers ✅The
underwriting process begins
The entire contract includes the actual policy and
-certification of authority
- application
-consideration
,PSI Life, Accident, and Health 11-35
Practice Test Q & As (Verified Answers)
2026
-representations - Correct Answers ✅application
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 Answers ✅A patient may see
any provider for any condition for the same cost and does not
need to consult a primary care physician
Which of the following may be thought of as a time
deductible rather a dollar deductible in a disability income
policy because benefits are not payable during a time?
-benefit period
-elimination period
-probationary period
-grace period - Correct Answers ✅Elimination Period
, PSI Life, Accident, and Health 11-35
Practice Test Q & As (Verified Answers)
2026
What is the maximum amount of time the insured has to file
legal action against the insurer?
-10 years
-3 years
-5 years
-1 year - Correct Answers ✅3 years
How are issues of ambiguity usually resolved because
insurance contracts are contracts to adhesion?
-in favor of the insured because the insurance company
drafts the language
-in favor of the insurer because most issues arise from
misrepresentation on the part of the insured
-in favor of the insurer because the insured frequently does
not adherer to the requirements of the contract
-in favor of the insured because insurance companies often
do not adhere to the more specific contract principles -
Correct Answers ✅In favor of the insured because the
insurance company drafts the language in the contract.
Which of the following is considered the major advantage of
HIPPA?
Practice Test Q & As (Verified Answers)
2026
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 Answers ✅binding receipt
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 Answers ✅The
underwriting process begins
The entire contract includes the actual policy and
-certification of authority
- application
-consideration
,PSI Life, Accident, and Health 11-35
Practice Test Q & As (Verified Answers)
2026
-representations - Correct Answers ✅application
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 Answers ✅A patient may see
any provider for any condition for the same cost and does not
need to consult a primary care physician
Which of the following may be thought of as a time
deductible rather a dollar deductible in a disability income
policy because benefits are not payable during a time?
-benefit period
-elimination period
-probationary period
-grace period - Correct Answers ✅Elimination Period
, PSI Life, Accident, and Health 11-35
Practice Test Q & As (Verified Answers)
2026
What is the maximum amount of time the insured has to file
legal action against the insurer?
-10 years
-3 years
-5 years
-1 year - Correct Answers ✅3 years
How are issues of ambiguity usually resolved because
insurance contracts are contracts to adhesion?
-in favor of the insured because the insurance company
drafts the language
-in favor of the insurer because most issues arise from
misrepresentation on the part of the insured
-in favor of the insurer because the insured frequently does
not adherer to the requirements of the contract
-in favor of the insured because insurance companies often
do not adhere to the more specific contract principles -
Correct Answers ✅In favor of the insured because the
insurance company drafts the language in the contract.
Which of the following is considered the major advantage of
HIPPA?
