PSI LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM 2024 UPDATED
QUESTIONS WITH ANSWERS
When can the premiums of an individually owned health insurance policy be deducted
from the individual's income tax? - CORRECT ANSWER>>>>When the taxpayer's
medical expenses exceed 7.5% of adjusted gross income during a taxable year .
Short term disability insurance generally only covers injuries due to which of the
following? - CORRECT ANSWER>>>>Non-occupational injuries.
What type of insurance should a company purchase if it wants to insure the life of its
CEO? - CORRECT ANSWER>>>>Key person insurance
For an individual long-term care policy there is an annual dollar limit for tax deduction
that is based on which of the following? - CORRECT ANSWER>>>>Age
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 insurance plans are commonly offered through the work-site (employer
sponsored) EXCEPT? - CORRECT ANSWER>>>>Medicare
State generally define a true "Group" for insurance as requiring a minimum of how many
participants? - CORRECT ANSWER>>>>10
Which of the following policy types is considered double indemnity? - CORRECT
ANSWER>>>>Accidental death
Which of the following is true about a decreasing term life policy? - CORRECT
ANSWER>>>>The face amount reached zero at policy expiration .
Which of the following lists the three common types of permanent individual life
insurance? - CORRECT ANSWER>>>>Variable Life, Whole Life, Universal Life
Which types of life policy can be continued year after year without a required medical
examination but rates are dependent on the insured's current age? - CORRECT
, ANSWER>>>>Renewable term
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 insurance
Which of the following is TRUE of an equity-indexed annuity? - CORRECT
ANSWER>>>>It has a guaranteed minimum interest rate.
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.
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 defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - CORRECT ANSWER>>>>Stop
Loss Limit
A basic vision care package includes all of the following EXCEPT? - CORRECT
ANSWER>>>>Safety glasses
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)
Current assumption whole life policies are sensitive to which of the following? -
CORRECT ANSWER>>>>Interest rates
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.
Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - CORRECT ANSWER>>>>It is financially insufficient to
cover end of life expenses.
In a home healthcare benefit, all of the following are eligible expenses EXCEPT? -
CORRECT ANSWER>>>>Blood Transfusions
Which of the following amends the Social Security Act to make Medicare secondary to
PRACTICE EXAM 2024 UPDATED
QUESTIONS WITH ANSWERS
When can the premiums of an individually owned health insurance policy be deducted
from the individual's income tax? - CORRECT ANSWER>>>>When the taxpayer's
medical expenses exceed 7.5% of adjusted gross income during a taxable year .
Short term disability insurance generally only covers injuries due to which of the
following? - CORRECT ANSWER>>>>Non-occupational injuries.
What type of insurance should a company purchase if it wants to insure the life of its
CEO? - CORRECT ANSWER>>>>Key person insurance
For an individual long-term care policy there is an annual dollar limit for tax deduction
that is based on which of the following? - CORRECT ANSWER>>>>Age
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 insurance plans are commonly offered through the work-site (employer
sponsored) EXCEPT? - CORRECT ANSWER>>>>Medicare
State generally define a true "Group" for insurance as requiring a minimum of how many
participants? - CORRECT ANSWER>>>>10
Which of the following policy types is considered double indemnity? - CORRECT
ANSWER>>>>Accidental death
Which of the following is true about a decreasing term life policy? - CORRECT
ANSWER>>>>The face amount reached zero at policy expiration .
Which of the following lists the three common types of permanent individual life
insurance? - CORRECT ANSWER>>>>Variable Life, Whole Life, Universal Life
Which types of life policy can be continued year after year without a required medical
examination but rates are dependent on the insured's current age? - CORRECT
, ANSWER>>>>Renewable term
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 insurance
Which of the following is TRUE of an equity-indexed annuity? - CORRECT
ANSWER>>>>It has a guaranteed minimum interest rate.
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.
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 defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - CORRECT ANSWER>>>>Stop
Loss Limit
A basic vision care package includes all of the following EXCEPT? - CORRECT
ANSWER>>>>Safety glasses
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)
Current assumption whole life policies are sensitive to which of the following? -
CORRECT ANSWER>>>>Interest rates
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.
Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - CORRECT ANSWER>>>>It is financially insufficient to
cover end of life expenses.
In a home healthcare benefit, all of the following are eligible expenses EXCEPT? -
CORRECT ANSWER>>>>Blood Transfusions
Which of the following amends the Social Security Act to make Medicare secondary to
