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PSI Life, Accident, Health Practice Exam
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2023-2024Questions AND ANSWERS|
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GRADED A (210 QUESTIONS) ne
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Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare
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select plans?
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1
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The insurer is able to cancel, or deny renewal of an existing policy, based solely on the health of
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the insured.
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2
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There is no restriction for benefits after the coverage has been in effect for six months when
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involving a preexisting condition.
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3
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The coverage for a loss from an illness or disease is treated differently than for a loss resulting
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from an injury due to an accident. sh
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4
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The coverage for a spouse cannot be terminated for any reason, including for nonpayment of
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premiums. Correct Answer: 2
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There is no restriction for benefits after the coverage has been in effect for six months when
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involving a preexisting condition.
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la
How is the insurance commissioner chosen?
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1
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Elected by the people.
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2
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Appointed by the Governor
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3
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Selected by a vote in the House and the Senate.
4
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Randomly selected from a list of qualified candidates. Correct Answer: 1
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Elected by the people.
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An insurance agent is a person who transacts all of the following types of insurance EXCEPT:
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1
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annuities.
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2
homeowners.
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3
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auto insurance.
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4
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life insurance. Correct Answer: 4
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life insurance.
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The California Legislature declared all of the following when creating the Healthy Families
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Program EXCEPT:
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1
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that most uninsured children come from low-income families.
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2
lack of educational resources for children and their parents leads to increased medical expenses.
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3
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that lack of insurance coverage for children results in reduced access to medical services.
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4
when a child is seriously ill or injured, the costs of needed medical care can force families into
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financial ruin. Correct Answer: 2
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lack of educational resources for children and their parents leads to increased medical expenses.
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Which of the following BEST defines the general concept of the 24-hour care plan?
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1
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It integrates workers compensation medical care with the care provided by group health
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insurance.
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2
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It provides immediate medical care from any source for injuries on which occur on the job.
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3
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It permits non job related injuries to be treated through the worker?s compensation program.
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4
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It pays any medical bill from a job related injury for services within the first 24 hours of the
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injury. Correct Answer: 1
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It integrates workers compensation medical care with the care provided by group health
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insurance.
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Sp
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance?
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1
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An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person has not.
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2
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Sp
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An "admitted" person has been granted admission to an insurance association, while a
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"nonadmitted" person has not been accepted.
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3
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An "admitted" person has been admitted to an accreditation program, while a "nonadmitted"
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person has yet to earn the credits.
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4
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An "admitted" person has the right to transact insurance business within the state, while a
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"nonadmitted" person is not entitled to this action. Correct Answer: 4
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An "admitted" person has the right to transact insurance business within the state, while a
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"nonadmitted" person is not entitled to this action.
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Sp
When may a licensee surrender for cancellation any license under which they are permitted to
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act?
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1
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upon renewal of the license
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2
within 60 days of renewal of their license
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3
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at any time
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4
when they no longer have any clients with policies in force Correct Answer: 3
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at any time
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Sp
When does a disability policy become incontestable as to the statements contained in the
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application?
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1
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After this policy been in force for a period of one year during the lifetime of the insured.
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2
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After this policy been in force for a period of two years during the lifetime of the insured.
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3
Sp
When the company has confirmed all of the statements and issued a binding contract.
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4
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Two years after the date of the application when a conditional receipt has been issued. Correct
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Answer: 2
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After this policy been in force for a period of two years during the lifetime of the insured.
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Which statement describes the intent of the California Financial Information Privacy Act?
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sh
Sp
1
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It enables and authorizes the Gramm-Leach-Bliley Act into California legal system.
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2
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It permits civil lawsuits against financial institutions who violate the Gramm-Leach-Bliley Act.
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Sp
3
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It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley
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Act.
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4
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Sp
It permits greater flexibility to financial institutions than privacy protections enacted in Gramm-
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Leach-Bliley Act. Correct Answer: 3
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It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley
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Act.
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Sp
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All of the following are TRUE about the rules regarding the sale of life insurance and annuities
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to seniors age 65 or older EXCEPT
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sh
Sp
1
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the senior is entitled to have others present during any presentation by an agent, broker or
insurer.
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2
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Sp
all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older a duty of
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honesty, good faith, and fair dealing.
3
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the agent, broker or insurer is required to show a copy of their insurance license with name,
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address, and phone number when conducting business in the senior's home.
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4
advance notice must be provided to the senior disclosing and identifying details of the visit and
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the agent or broker prior to the scheduled meeting. Correct Answer: 3
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the agent, broker or insurer is required to show a copy of their insurance license with name,
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address, and phone number when conducting business in the senior's home.
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All of the following are a duty of an insurer in regards to claims on file and record
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documentation EXCEPT
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1
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maintaining claim data so that an insurer shall be able to provide the claim number, line of
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coverage, and other pertinent data.
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2
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recording the date the licensee received, date(s) the licensee processed and date the licensee
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transmitted or mailed every material and relevant document in the file.
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3
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maintaining any sales material, which had a material impact on the claims process.
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4
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maintaining claim files that are accessible, legible, and claim of duplication. Correct Answer: 3
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maintaining any sales material, which had a material impact on the claims process.
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Sp
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"Person" means all of the following EXCEPT
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tz
1
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Sp
an association.
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2
la
sh
Sp
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Sp
tz
sh
ne
PSI Life, Accident, Health Practice Exam
la
tz
2023-2024Questions AND ANSWERS|
sh
Sp
GRADED A (210 QUESTIONS) ne
la
tz
sh
Sp
ne
la
tz
sh
Sp
ne
la
tz
sh
Sp
Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare
ne
select plans?
la
tz
sh
1
Sp
The insurer is able to cancel, or deny renewal of an existing policy, based solely on the health of
ne
the insured.
la
2
tz
There is no restriction for benefits after the coverage has been in effect for six months when
sh
Sp
involving a preexisting condition.
ne
3
la
The coverage for a loss from an illness or disease is treated differently than for a loss resulting
tz
from an injury due to an accident. sh
Sp
4
ne
The coverage for a spouse cannot be terminated for any reason, including for nonpayment of
la
premiums. Correct Answer: 2
tz
There is no restriction for benefits after the coverage has been in effect for six months when
sh
Sp
involving a preexisting condition.
ne
la
How is the insurance commissioner chosen?
tz
sh
Sp
1
ne
Elected by the people.
la
2
tz
Appointed by the Governor
sh
Sp
3
ne
Selected by a vote in the House and the Senate.
4
la
tz
Randomly selected from a list of qualified candidates. Correct Answer: 1
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Elected by the people.
Sp
ne
An insurance agent is a person who transacts all of the following types of insurance EXCEPT:
la
sh
Sp
la
Sp
, ne
tz
sh
ne
1
la
tz
annuities.
sh
Sp
2
homeowners.
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la
3
tz
auto insurance.
sh
Sp
4
ne
life insurance. Correct Answer: 4
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life insurance.
tz
sh
Sp
The California Legislature declared all of the following when creating the Healthy Families
ne
Program EXCEPT:
la
tz
1
sh
Sp
that most uninsured children come from low-income families.
ne
2
lack of educational resources for children and their parents leads to increased medical expenses.
la
3
tz
sh
that lack of insurance coverage for children results in reduced access to medical services.
Sp
ne
4
when a child is seriously ill or injured, the costs of needed medical care can force families into
la
financial ruin. Correct Answer: 2
tz
sh
lack of educational resources for children and their parents leads to increased medical expenses.
Sp
ne
Which of the following BEST defines the general concept of the 24-hour care plan?
la
tz
1
sh
Sp
It integrates workers compensation medical care with the care provided by group health
ne
insurance.
la
2
tz
sh
It provides immediate medical care from any source for injuries on which occur on the job.
Sp
3
ne
It permits non job related injuries to be treated through the worker?s compensation program.
la
4
tz
It pays any medical bill from a job related injury for services within the first 24 hours of the
sh
Sp
injury. Correct Answer: 1
ne
It integrates workers compensation medical care with the care provided by group health
la
insurance.
tz
sh
Sp
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance?
ne
la
1
tz
An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person has not.
sh
Sp
2
ne
la
sh
Sp
la
Sp
, ne
tz
sh
ne
An "admitted" person has been granted admission to an insurance association, while a
la
"nonadmitted" person has not been accepted.
tz
3
sh
Sp
An "admitted" person has been admitted to an accreditation program, while a "nonadmitted"
ne
person has yet to earn the credits.
la
4
tz
An "admitted" person has the right to transact insurance business within the state, while a
sh
Sp
"nonadmitted" person is not entitled to this action. Correct Answer: 4
ne
An "admitted" person has the right to transact insurance business within the state, while a
la
"nonadmitted" person is not entitled to this action.
tz
sh
Sp
When may a licensee surrender for cancellation any license under which they are permitted to
ne
act?
la
tz
1
sh
Sp
upon renewal of the license
ne
2
within 60 days of renewal of their license
la
3
tz
sh
at any time
Sp
ne
4
when they no longer have any clients with policies in force Correct Answer: 3
la
at any time
tz
sh
Sp
When does a disability policy become incontestable as to the statements contained in the
ne
application?
la
tz
1
sh
Sp
After this policy been in force for a period of one year during the lifetime of the insured.
ne
2
la
After this policy been in force for a period of two years during the lifetime of the insured.
tz
sh
3
Sp
When the company has confirmed all of the statements and issued a binding contract.
ne
4
la
Two years after the date of the application when a conditional receipt has been issued. Correct
tz
Answer: 2
sh
Sp
After this policy been in force for a period of two years during the lifetime of the insured.
ne
la
Which statement describes the intent of the California Financial Information Privacy Act?
tz
sh
Sp
1
ne
It enables and authorizes the Gramm-Leach-Bliley Act into California legal system.
la
2
tz
It permits civil lawsuits against financial institutions who violate the Gramm-Leach-Bliley Act.
sh
Sp
3
ne
la
sh
Sp
la
Sp
, ne
tz
sh
ne
It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley
la
Act.
tz
4
sh
Sp
It permits greater flexibility to financial institutions than privacy protections enacted in Gramm-
ne
Leach-Bliley Act. Correct Answer: 3
la
It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley
tz
Act.
sh
Sp
ne
All of the following are TRUE about the rules regarding the sale of life insurance and annuities
la
to seniors age 65 or older EXCEPT
tz
sh
Sp
1
ne
the senior is entitled to have others present during any presentation by an agent, broker or
insurer.
la
tz
2
sh
Sp
all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older a duty of
ne
honesty, good faith, and fair dealing.
3
la
the agent, broker or insurer is required to show a copy of their insurance license with name,
tz
sh
address, and phone number when conducting business in the senior's home.
Sp
ne
4
advance notice must be provided to the senior disclosing and identifying details of the visit and
la
the agent or broker prior to the scheduled meeting. Correct Answer: 3
tz
sh
the agent, broker or insurer is required to show a copy of their insurance license with name,
Sp
address, and phone number when conducting business in the senior's home.
ne
la
All of the following are a duty of an insurer in regards to claims on file and record
tz
documentation EXCEPT
sh
Sp
ne
1
la
maintaining claim data so that an insurer shall be able to provide the claim number, line of
tz
sh
coverage, and other pertinent data.
Sp
2
ne
recording the date the licensee received, date(s) the licensee processed and date the licensee
la
transmitted or mailed every material and relevant document in the file.
tz
3
sh
Sp
maintaining any sales material, which had a material impact on the claims process.
ne
4
la
maintaining claim files that are accessible, legible, and claim of duplication. Correct Answer: 3
tz
maintaining any sales material, which had a material impact on the claims process.
sh
Sp
ne
"Person" means all of the following EXCEPT
la
tz
1
sh
Sp
an association.
ne
2
la
sh
Sp
la
Sp
