PSI
EXAM
/
QUESTIONS WITH CORRECT ANSWERS
/ / / /
During
/which
/period
/of /
a
/Disability
/Income
/Policy
/is
/coverage
/effective /but /during /which /no /benefits /will /be /paid /under /the /policy? /- /verified /answer(s)-
✔✔Probationary /period
All
/of /the /following /are /common /exclusions /from /loss /found /in /disability /income /policies /EXCEPT
/for /that /incurred /while /- /verified /answer(s)-✔✔commiting /a /misdemeanor
What
/is
/the
/primary
/advantage
/for
/obtaining /a /reinstatement /of /a /policy /rather /than /obtaining /a /new /one? /- /verified /answer(s)-
✔✔insured /original /issue /age /is /used
,How
/does /
a /noncancelable /policy /differ /from /a /guaranteed /renewable /policy? /- /verified /answer(s)-
✔✔With
/the /noncancelable /policy /the /insurer /may /increase /premiums /only /based /on /the /terms /of /the
/policy.
What /does /first /dollar /coverage /mean? /- /verified /answer(s)-
✔✔As /soon /as /covered /medical /expenses /are /incurred, /the /policy /begins /to /pay.
What
/is
/the
/maximum
/amount
/of
/time
/the /insured /has /to /file /legal /action /against /the /insurer /after /written /proof /of /loss /is /provided?
/- /verified /answer(s)-✔✔3 /years
What /is /a /MIB /report? /- /verified /answer(s)-
✔✔medical /information /on /an /applicant /for /assessing /life /or /health /insurance /risk
All /of /the /following /are /TRUE /regarding /incomplete /applications /EXCEPT /- /verified /answer(s)-
✔✔the /incomplete /application /can /be /accepted /with /the /missing /information /added /later.
hy /are /insurance /policies /considered /conditional /contracts? /- /verified /answer(s)-
✔✔Certain /conditions /need /to /be /met /to /make /the /contract /legally /enforceable.
When /does /insurable /interest /come /into /play /in /a /life /insurance /policy? /- /verified /answer(s)-
✔✔when /the /applicant /for /the /policy /is /not /the /insured
, Which
/type
/of
/receipt
/makes
/the
/insurer
/liable
/for
/the
/risk
/from /the /date /of /application, /regardless /of /the /applicant's /insurability? /- /verified /answer(s)-
✔✔binding /receipt
What
/specific
/new
/procedures /does /the /USA /Patriot /Act /require /of /insurance /companies? /- /verified /answer(s)-
✔✔Establish /an /anti-money /laundering /program
What /is /the /purpose /of /Stranger-originated /life /insurance /(STOLI)? /- /verified /answer(s)-
✔✔he /policy /is /originated /primarily /or /solely /for /the /purpose /of /resale
How /do /warranties /differ /from /representations? /- /verified /answer(s)-
✔✔a
/warranty
/is
/guaranteed
/to /be /true, /a /representation /is /believed /to /be /true /to /the /best /of /one's /knowledge.
Obtaining
/consumer
/information
/reports
EXAM
/
QUESTIONS WITH CORRECT ANSWERS
/ / / /
During
/which
/period
/of /
a
/Disability
/Income
/Policy
/is
/coverage
/effective /but /during /which /no /benefits /will /be /paid /under /the /policy? /- /verified /answer(s)-
✔✔Probationary /period
All
/of /the /following /are /common /exclusions /from /loss /found /in /disability /income /policies /EXCEPT
/for /that /incurred /while /- /verified /answer(s)-✔✔commiting /a /misdemeanor
What
/is
/the
/primary
/advantage
/for
/obtaining /a /reinstatement /of /a /policy /rather /than /obtaining /a /new /one? /- /verified /answer(s)-
✔✔insured /original /issue /age /is /used
,How
/does /
a /noncancelable /policy /differ /from /a /guaranteed /renewable /policy? /- /verified /answer(s)-
✔✔With
/the /noncancelable /policy /the /insurer /may /increase /premiums /only /based /on /the /terms /of /the
/policy.
What /does /first /dollar /coverage /mean? /- /verified /answer(s)-
✔✔As /soon /as /covered /medical /expenses /are /incurred, /the /policy /begins /to /pay.
What
/is
/the
/maximum
/amount
/of
/time
/the /insured /has /to /file /legal /action /against /the /insurer /after /written /proof /of /loss /is /provided?
/- /verified /answer(s)-✔✔3 /years
What /is /a /MIB /report? /- /verified /answer(s)-
✔✔medical /information /on /an /applicant /for /assessing /life /or /health /insurance /risk
All /of /the /following /are /TRUE /regarding /incomplete /applications /EXCEPT /- /verified /answer(s)-
✔✔the /incomplete /application /can /be /accepted /with /the /missing /information /added /later.
hy /are /insurance /policies /considered /conditional /contracts? /- /verified /answer(s)-
✔✔Certain /conditions /need /to /be /met /to /make /the /contract /legally /enforceable.
When /does /insurable /interest /come /into /play /in /a /life /insurance /policy? /- /verified /answer(s)-
✔✔when /the /applicant /for /the /policy /is /not /the /insured
, Which
/type
/of
/receipt
/makes
/the
/insurer
/liable
/for
/the
/risk
/from /the /date /of /application, /regardless /of /the /applicant's /insurability? /- /verified /answer(s)-
✔✔binding /receipt
What
/specific
/new
/procedures /does /the /USA /Patriot /Act /require /of /insurance /companies? /- /verified /answer(s)-
✔✔Establish /an /anti-money /laundering /program
What /is /the /purpose /of /Stranger-originated /life /insurance /(STOLI)? /- /verified /answer(s)-
✔✔he /policy /is /originated /primarily /or /solely /for /the /purpose /of /resale
How /do /warranties /differ /from /representations? /- /verified /answer(s)-
✔✔a
/warranty
/is
/guaranteed
/to /be /true, /a /representation /is /believed /to /be /true /to /the /best /of /one's /knowledge.
Obtaining
/consumer
/information
/reports
