PSI life, accident, and health Exam with questions and answers.pdf

In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness? A. Only the individual's policy pays. B. Both policies pay the full amount. C. The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount. D. The policy that was purchased first pays first, the second policy pays the remaining up to coverage amount. - ANSWER The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount. Which of the following is TRUE for a flexible premium annuity? A. The actual amount of the annuity benefit is determined in advance. B. A single set amount premium is paid by the annuitant on an annual basis. C. The company promises to pay the annuitant an amount each period beginning after a single lump sum payment. D. The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount. - ANSWER The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount. What is the purpose of Stranger-originated life insurance (STOLI)? A. the policy is originated primarily or solely for the purpose of resale B. the policy is written so as to avoid proof of insurable interest C. it is a method of insuring a person who has been previously declined. D. it is a fraudulent policy meant for financial gain of someone unknown to the insured. - ANSWER the policy is originated primarily or solely for the purpose of resale Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses? A. Deductible B. Stop Loss Limit C. Maximum Benefit D. Coinsurance - ANSWER Stop Loss Limit How does the per capita rule apply to proceeds from a life insurance policy? A. The proceeds are divided equally among living primary beneficiaries. B. The secondary beneficiary receives the proceeds if the primary beneficiary is no longer living. C. The proceeds go to the policyholder's estate when no beneficiary is living. D. The proceeds go to the descendants of the primary beneficiaries - ANSWER The proceeds are divided equally among living primary beneficiaries. Which of the following is covered by a dread disease policy? A. mental health and related psychiatric illnesses B. hospital stays that extend beyond the usual and customary time frame C. illnesses that do not occur frequently but incur significant costs when they do occur D. a newly acquired illness that is contracted by a person with a pre-existing condition - ANSWER illnesses that do not occur frequently but incur significant costs when they do occur Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT? A. Medicare B. Dental Insurance C. Long Term Care Insurance D. Supplemental Disability Insurance - ANSWER Medicare Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies? A. Joint life annuity B. Life annuity C. Survivorship life annuity D. Temporary annuity - ANSWER Joint life annuity