PSI LIfe Insurance Exam
, During which period of a Disability Income Policy is coverage effective but during which
no benefits will be paid under the policy? - CORRECT ANSWERS-Probationary period
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while - CORRECT ANSWERS-committing a misdemeanor
What is the primary advantage for obtaining a reinstatement of a policy rather than
obtaining a new one? - CORRECT ANSWERS-insured original issue age is used
How does a noncancelable policy differ from a guaranteed renewable policy? -
CORRECT ANSWERS-With the noncancelable policy the insurer may increase
premiums only based on the terms of the policy.
What does first dollar coverage mean? - CORRECT ANSWERS-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? - CORRECT ANSWERS-3 years
What is a MIB report? - CORRECT ANSWERS-medical information on an applicant for
assessing life or health insurance risk
All of the following are TRUE regarding incomplete applications EXCEPT - CORRECT
ANSWERS-the incomplete application can be accepted with the missing information
added later.
Why are insurance policies considered conditional contracts? - CORRECT ANSWERS-
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - CORRECT
ANSWERS-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? - CORRECT ANSWERS-binding receipt
What specific new procedures does the USA Patriot Act require of insurance
companies? - CORRECT ANSWERS-Establish an anti-money laundering program
What is the purpose of Stranger-originated life insurance (STOLI)? - CORRECT
ANSWERS-he policy originated primarily or solely for the purpose of resale.
How do warranties differ from representations? - CORRECT ANSWERS-a warranty is
guaranteed to be true, a representation is believed to be true to the best of one's
knowledge.
, During which period of a Disability Income Policy is coverage effective but during which
no benefits will be paid under the policy? - CORRECT ANSWERS-Probationary period
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while - CORRECT ANSWERS-committing a misdemeanor
What is the primary advantage for obtaining a reinstatement of a policy rather than
obtaining a new one? - CORRECT ANSWERS-insured original issue age is used
How does a noncancelable policy differ from a guaranteed renewable policy? -
CORRECT ANSWERS-With the noncancelable policy the insurer may increase
premiums only based on the terms of the policy.
What does first dollar coverage mean? - CORRECT ANSWERS-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? - CORRECT ANSWERS-3 years
What is a MIB report? - CORRECT ANSWERS-medical information on an applicant for
assessing life or health insurance risk
All of the following are TRUE regarding incomplete applications EXCEPT - CORRECT
ANSWERS-the incomplete application can be accepted with the missing information
added later.
Why are insurance policies considered conditional contracts? - CORRECT ANSWERS-
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - CORRECT
ANSWERS-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? - CORRECT ANSWERS-binding receipt
What specific new procedures does the USA Patriot Act require of insurance
companies? - CORRECT ANSWERS-Establish an anti-money laundering program
What is the purpose of Stranger-originated life insurance (STOLI)? - CORRECT
ANSWERS-he policy originated primarily or solely for the purpose of resale.
How do warranties differ from representations? - CORRECT ANSWERS-a warranty is
guaranteed to be true, a representation is believed to be true to the best of one's
knowledge.
