PSI Insurance Exam (OH Life, Accident, and Health) 100% VERIFIED

What is it called when a life insurance policy pays a multiple of the coverage amount when certain types of accidents occur? - ANS - multiple indemnity 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? - ANS - 30 days Which of the following statements regarding a pure life annuity payout option is correct? - ANS - 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? - ANS - 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? - ANS - 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? - ANS - 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 - ANS - 2 year period. Which of the following is a characteristic of Health Maintenance Organizations (HMOs)? - ANS - preventive care The life insurance policy will not be truly effective until all of the following occur EXCEPT - ANS - 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? - ANS - when a third-party applicant names themselves beneficiary Which of the following is a distinguishing feature of a variable life insurance policy? - ANS - 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 - ANS - annuitant. Which of the following is an example of a premium payment mode? - ANS - annual premium payment