PSI Life Agent Study Guide Exam
Questions with Complete Solutions
Joe has a major medical policy with a $500 deductible and 80/20 coinsurance. He
suffers a covered loss of $2500. How much does the insurance company pay?
A) $2000
B)$1600
C)$1500
D)$900 - Answer-B) $1600
2500 - 500 = 2000
2000 x .80 = 1600
Which health rider would NOT increase the cost of the policy?
A) AD&D Rider
B) Future Income option rider
C) Exclusion rider
D) Cost of living adjustment rider - Answer-C) Exclusion Rider
Which benefit of a disability income policy is only available as a rider?
A) Waiver of premium
B) Recurrent disability
C) Presumptive total disability
D) Additional monthly benefit - Answer-D) Additional Monthly benefit
Joe and Jo own a small interior design studio that employs 5 people. They are
concerned about the financial stability of the business if either of them becomes
permanently disabled. What would a producer most likely recommend?
A) Residual disability
B) Recurrent Disability
C) Disability buy-out
D)Business overhead expense - Answer-C) Disability buy-out
How does a group medical expense policy respond to an occupational injury loss?
A) It will provide coverage
B) It is primary to workers comp coverage
C) It is excess to workers comp coverage
D) it will exclude coverage - Answer-D) It will exclude coverage
, A Health Maintenance Organization (HMO) differs from a traditional insurer in that an
HMO
A)emphasizes preventative medicine
B)offers higher benefit limits
C) does not restrict an insured's choice of hospitals or physicians
D) is privately financed - Answer-A) emphasizes preventative medicine
What are a Hospital Indemnity plan's benefits based upon? - Answer-B) How long the
insured is hospitalized
Which health insurance policy requires a beneficiary designation?
A)Travel Accident
B) Long term care
C) Dread disease
D) critical illness - Answer-A) Travel accident
What would a mandatory second surgical opinion likely result in?
A)Fewer elective surgeries
B) Higher premium costs
C) Independent review of recommendations for surgery
D) Better management of the health care plan - Answer-B) Higher premium costs
A health insurance policy that covers dependent children MUST provide coverage for
newborns beginning
A) at the moment of birth
B) 14 days after birth
C) 31 days after birth
D) on the date the insurance company is notified - Answer-A) at the moment of birth
*Newborn children are automatically covered during the first 31 days following birth. To
continue coverage the primary insured subscriber must formally apply for coverage for
the child before 31 days have elapsed and pay an additional premium**
What does a long term care policy cover?
A) hospital indemnity
B) convalescence
C) respite care
D) Prescription drugs - Answer-C) Respite care
Questions with Complete Solutions
Joe has a major medical policy with a $500 deductible and 80/20 coinsurance. He
suffers a covered loss of $2500. How much does the insurance company pay?
A) $2000
B)$1600
C)$1500
D)$900 - Answer-B) $1600
2500 - 500 = 2000
2000 x .80 = 1600
Which health rider would NOT increase the cost of the policy?
A) AD&D Rider
B) Future Income option rider
C) Exclusion rider
D) Cost of living adjustment rider - Answer-C) Exclusion Rider
Which benefit of a disability income policy is only available as a rider?
A) Waiver of premium
B) Recurrent disability
C) Presumptive total disability
D) Additional monthly benefit - Answer-D) Additional Monthly benefit
Joe and Jo own a small interior design studio that employs 5 people. They are
concerned about the financial stability of the business if either of them becomes
permanently disabled. What would a producer most likely recommend?
A) Residual disability
B) Recurrent Disability
C) Disability buy-out
D)Business overhead expense - Answer-C) Disability buy-out
How does a group medical expense policy respond to an occupational injury loss?
A) It will provide coverage
B) It is primary to workers comp coverage
C) It is excess to workers comp coverage
D) it will exclude coverage - Answer-D) It will exclude coverage
, A Health Maintenance Organization (HMO) differs from a traditional insurer in that an
HMO
A)emphasizes preventative medicine
B)offers higher benefit limits
C) does not restrict an insured's choice of hospitals or physicians
D) is privately financed - Answer-A) emphasizes preventative medicine
What are a Hospital Indemnity plan's benefits based upon? - Answer-B) How long the
insured is hospitalized
Which health insurance policy requires a beneficiary designation?
A)Travel Accident
B) Long term care
C) Dread disease
D) critical illness - Answer-A) Travel accident
What would a mandatory second surgical opinion likely result in?
A)Fewer elective surgeries
B) Higher premium costs
C) Independent review of recommendations for surgery
D) Better management of the health care plan - Answer-B) Higher premium costs
A health insurance policy that covers dependent children MUST provide coverage for
newborns beginning
A) at the moment of birth
B) 14 days after birth
C) 31 days after birth
D) on the date the insurance company is notified - Answer-A) at the moment of birth
*Newborn children are automatically covered during the first 31 days following birth. To
continue coverage the primary insured subscriber must formally apply for coverage for
the child before 31 days have elapsed and pay an additional premium**
What does a long term care policy cover?
A) hospital indemnity
B) convalescence
C) respite care
D) Prescription drugs - Answer-C) Respite care
