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? -
ANSBenefits 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? - ANSNotice of claim.
When will a policy pay on a UCR basis? - ANSWhen particular benefits are not listed on a
payment schedule.
All of the following are non-forfeiture options EXCEPT - ANSCash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANSThe
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)? - ANSThe producer.
What is the waiver of premium provision? - ANSIn 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? - ANSCommitting a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANSThe actual amount of the
annuity benefit cannot be determined in advance.
What does coninsurance mean? - ANSThe 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? - ANSThe 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? - ANSThe 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? - ANSAny chronic
health condition that presents symptoms and which was unknown at the time of application.
, Which is the difference between participating and non-participating? - ANSParticipating
policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - ANSThe
proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - ANSWith 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? - ANSMode
What is the return of premium rider? - ANSAn increasing amount of term insurance that
always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - ANSAs 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: - ANS2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
ANSThe minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - ANSThe policy is
originated primarily or solely for the purpose of resale.
What procedure is used by an insurer to protect itself in the event a dispute arises and the
applicant and the agent do not recall the changes that were made in a completed
application? - ANSThe applicant and possibly the agent initial any changes made.
What specific new procedures does the USA Patriot Act require of insurance program? -
ANSEstablish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the initial
premium paid? - ANSThe underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT? - ANSMedical Underwriting exam.
Why are insurance policies considered conditional contracts? - ANSCertain conditions need
to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - ANSWhen the
applicant for the policy is not the insured.
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? -
ANSBenefits 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? - ANSNotice of claim.
When will a policy pay on a UCR basis? - ANSWhen particular benefits are not listed on a
payment schedule.
All of the following are non-forfeiture options EXCEPT - ANSCash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANSThe
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)? - ANSThe producer.
What is the waiver of premium provision? - ANSIn 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? - ANSCommitting a misdemeanor
Which is a disadvantage to a flexible premium annuity? - ANSThe actual amount of the
annuity benefit cannot be determined in advance.
What does coninsurance mean? - ANSThe 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? - ANSThe 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? - ANSThe 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? - ANSAny chronic
health condition that presents symptoms and which was unknown at the time of application.
, Which is the difference between participating and non-participating? - ANSParticipating
policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy? - ANSThe
proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy? - ANSWith 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? - ANSMode
What is the return of premium rider? - ANSAn increasing amount of term insurance that
always equals the total of premiums paid up to the current point.
What does first dollar coverage mean? - ANSAs 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: - ANS2 year period
All of the following are required signatures on a life insurance application EXCEPT? -
ANSThe minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)? - ANSThe policy is
originated primarily or solely for the purpose of resale.
What procedure is used by an insurer to protect itself in the event a dispute arises and the
applicant and the agent do not recall the changes that were made in a completed
application? - ANSThe applicant and possibly the agent initial any changes made.
What specific new procedures does the USA Patriot Act require of insurance program? -
ANSEstablish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the initial
premium paid? - ANSThe underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT? - ANSMedical Underwriting exam.
Why are insurance policies considered conditional contracts? - ANSCertain conditions need
to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - ANSWhen the
applicant for the policy is not the insured.
