PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM
PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM
Under the misstatement of age or gender provision, what happens if it is determined at death that the
insured's age or gender was misstated on a life insurance policy application? - ANSWER Benefits are
adjusted to an amount that the premium would have purchased at the correct age or gender.
Which of the following must be given to the insurer within 20 days after occurrence or commencement
of any loss covered by the policy, or as thereafter as is reasonably possible? - ANSWER Notice of claim.
When will a policy pay on a UCR basis? - ANSWER When particular benefits are not listed on a payment
schedule.
All of the following are non-forfeiture options EXCEPT - ANSWER Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANSWER The insured will
pay all of the remaining medial costs for as long as the policy is in force.
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest
possible opportunity (in most cases)? - ANSWER The producer.
What is the waiver of premium provision? - ANSWER In a long term care contract, the premium is
waived after the insured has been confined for a specific period of time.
All of the following are common exclusions from loss found in disability income policies EXCEPT for that
incurred while? - ANSWER Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANSWER The actual amount of the annuity
benefit cannot be determined in advance.
, PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM
What does coninsurance mean? - ANSWER The insurer and the insured share expenses over the
deductible.
Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed? -
ANSWER The insured has 90 days from the date of loss to provide proof of loss.
Which one of the following represents an advantage of obtaining a policy loan versus a withdrawal? -
ANSWER The loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis.
All of the following statements define preexisting conditions EXCEPT? - ANSWER Any chronic health
condition that presents symptoms and which was unknown at the time of application.
Which is the difference between participating and non-participating? - ANSWER Participating policies
pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - ANSWER The proceeds are
divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - ANSWER With the
noncancelable policy the insurer may increase premiums only based on the terms of the policy.
Which of the following refers to how often a premium is paid? - ANSWER Mode
What is the return of premium rider? - ANSWER An increasing amount of term insurance that always
equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - ANSWER As soon as covered medical expenses are incurred, the
policy begins to pay.
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
PRACTICE EXAM
PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM
Under the misstatement of age or gender provision, what happens if it is determined at death that the
insured's age or gender was misstated on a life insurance policy application? - ANSWER Benefits are
adjusted to an amount that the premium would have purchased at the correct age or gender.
Which of the following must be given to the insurer within 20 days after occurrence or commencement
of any loss covered by the policy, or as thereafter as is reasonably possible? - ANSWER Notice of claim.
When will a policy pay on a UCR basis? - ANSWER When particular benefits are not listed on a payment
schedule.
All of the following are non-forfeiture options EXCEPT - ANSWER Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANSWER The insured will
pay all of the remaining medial costs for as long as the policy is in force.
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest
possible opportunity (in most cases)? - ANSWER The producer.
What is the waiver of premium provision? - ANSWER In a long term care contract, the premium is
waived after the insured has been confined for a specific period of time.
All of the following are common exclusions from loss found in disability income policies EXCEPT for that
incurred while? - ANSWER Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANSWER The actual amount of the annuity
benefit cannot be determined in advance.
, PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM
What does coninsurance mean? - ANSWER The insurer and the insured share expenses over the
deductible.
Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed? -
ANSWER The insured has 90 days from the date of loss to provide proof of loss.
Which one of the following represents an advantage of obtaining a policy loan versus a withdrawal? -
ANSWER The loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis.
All of the following statements define preexisting conditions EXCEPT? - ANSWER Any chronic health
condition that presents symptoms and which was unknown at the time of application.
Which is the difference between participating and non-participating? - ANSWER Participating policies
pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - ANSWER The proceeds are
divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - ANSWER With the
noncancelable policy the insurer may increase premiums only based on the terms of the policy.
Which of the following refers to how often a premium is paid? - ANSWER Mode
What is the return of premium rider? - ANSWER An increasing amount of term insurance that always
equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - ANSWER As soon as covered medical expenses are incurred, the
policy begins to pay.
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
