PSI INSURANCE EXAM OHIO LIFE ACCIDENT
AND HEALTH COMPLETE STUDY NOTES AND
REVISION GUIDE
◉ Upon the issuance of a conditional receipt for a renewal when the
premium is paid AFTER the time granted by the insurer, what is the
maximum amount of time for reinstatement of the policy?
Answer: 30 days
◉ Which of the following statements regarding a pure life annuity
payout option is correct?
Answer: This option provides the highest monthly income.
◉ Which of the following does not apply to the time limit on certain
defenses provision in health insurance policies?
Answer: fraudulent misstatements
◉ If an individual is insured by both their own health insurance
policy and their spouse's policy, which policy pays first in the event
of an illness?
Answer: The individual's policy pays first, the spouse's policy pays
the remaining up to coverage amount.
,◉ When can the premiums of an individually owned health
insurance policy be deducted from the individual's income tax?
Answer: when the taxpayer's unreimbursed medical expenses
exceed 7.5% of adjusted gross income during a taxable year
◉ When the suicide clause is inserted in a life insurance contract,
death by suicide is not covered during the policy's initial
Answer: 2 year period.
◉ Which of the following is a characteristic of Health Maintenance
Organizations (HMOs)?
Answer: preventive care
◉ The life insurance policy will not be truly effective until all of the
following occur EXCEPT
Answer: the producer has explained the policy to the client.
◉ Under which situation must insurable interest exist between the
applicant and insured at the time of application?
Answer: when a third-party applicant names themselves beneficiary
◉ Which of the following is a distinguishing feature of a variable life
insurance policy?
,Answer: The cash value earnings are based on the performance of
the separate account.
◉ The person who receives the benefit of an annuity is known as the
Answer: annuitant.
◉ Which of the following is an example of a premium payment
mode?
Answer: annual premium payment
◉ How do most disability policies handle the case of a recurrent
disability occurring at least 90 days after the first claim?
Answer: it must be handled as a new claim for a new period of
disability, requiring a new elimination period.
◉ Which of the following is true for most comprehensive dental
policies?
Answer: Routine care is provided without coinsurance or
deductibles.
◉ Under a Medicare Supplement Policy, preexisting conditions
CANNOT be excluded after how many months from the effective date
of the policy?
Answer: 6 months
, ◉ What does an application for insurance contractually represent
for the insured?
Answer: an offer
◉ Which of the following is exempted from the incontestability
provision in insurance policies?
Answer: fraudulent misstatements
◉ Which of the following may be thought of as a time deductible
rather than a dollar deductible in a disability income policy because
benefits are not payable during that time?
Answer: elimination period
◉ How long after being entitled to Social Security disability benefits
will an individual be eligible to receive Medicare benefits?
Answer: 2 years
◉ If a policy is determined to be a Modified Endowment Contract
(MEC), funds received under the policy will be
Answer: considered taxable income first.
◉ Which type of annuity attempts to offset inflation by providing a
benefit linked to an underlying investment account?
AND HEALTH COMPLETE STUDY NOTES AND
REVISION GUIDE
◉ Upon the issuance of a conditional receipt for a renewal when the
premium is paid AFTER the time granted by the insurer, what is the
maximum amount of time for reinstatement of the policy?
Answer: 30 days
◉ Which of the following statements regarding a pure life annuity
payout option is correct?
Answer: This option provides the highest monthly income.
◉ Which of the following does not apply to the time limit on certain
defenses provision in health insurance policies?
Answer: fraudulent misstatements
◉ If an individual is insured by both their own health insurance
policy and their spouse's policy, which policy pays first in the event
of an illness?
Answer: The individual's policy pays first, the spouse's policy pays
the remaining up to coverage amount.
,◉ When can the premiums of an individually owned health
insurance policy be deducted from the individual's income tax?
Answer: when the taxpayer's unreimbursed medical expenses
exceed 7.5% of adjusted gross income during a taxable year
◉ When the suicide clause is inserted in a life insurance contract,
death by suicide is not covered during the policy's initial
Answer: 2 year period.
◉ Which of the following is a characteristic of Health Maintenance
Organizations (HMOs)?
Answer: preventive care
◉ The life insurance policy will not be truly effective until all of the
following occur EXCEPT
Answer: the producer has explained the policy to the client.
◉ Under which situation must insurable interest exist between the
applicant and insured at the time of application?
Answer: when a third-party applicant names themselves beneficiary
◉ Which of the following is a distinguishing feature of a variable life
insurance policy?
,Answer: The cash value earnings are based on the performance of
the separate account.
◉ The person who receives the benefit of an annuity is known as the
Answer: annuitant.
◉ Which of the following is an example of a premium payment
mode?
Answer: annual premium payment
◉ How do most disability policies handle the case of a recurrent
disability occurring at least 90 days after the first claim?
Answer: it must be handled as a new claim for a new period of
disability, requiring a new elimination period.
◉ Which of the following is true for most comprehensive dental
policies?
Answer: Routine care is provided without coinsurance or
deductibles.
◉ Under a Medicare Supplement Policy, preexisting conditions
CANNOT be excluded after how many months from the effective date
of the policy?
Answer: 6 months
, ◉ What does an application for insurance contractually represent
for the insured?
Answer: an offer
◉ Which of the following is exempted from the incontestability
provision in insurance policies?
Answer: fraudulent misstatements
◉ Which of the following may be thought of as a time deductible
rather than a dollar deductible in a disability income policy because
benefits are not payable during that time?
Answer: elimination period
◉ How long after being entitled to Social Security disability benefits
will an individual be eligible to receive Medicare benefits?
Answer: 2 years
◉ If a policy is determined to be a Modified Endowment Contract
(MEC), funds received under the policy will be
Answer: considered taxable income first.
◉ Which type of annuity attempts to offset inflation by providing a
benefit linked to an underlying investment account?
