PSI LIFE, ACCIDENT AND HEALTH PRACTICE EXAM QUESTIONS AND ANSWERS

PSI LIFE, ACCIDENT AND HEALTH PRACTICE EXAM QUESTIONS AND ANSWERS Dividends that are received by a life insurance policy holder can be taxed in what situation(s): I - When the dividend amount received exceeds the amount that the policy holder paid in premiums - CORRECT ANSWER -The amount received that is over and above the amount paid into the policy via premiums is considered to be gain and is therefore taxable. There are no dividends paid on term life insurance policies. 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? - CORRECT 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? - CORRECT ANSWER -Notice of claim. When will a policy pay on a UCR basis? - CORRECT ANSWER -When particular benefits are not listed on a payment schedule. All of the following are non-forfeiture options EXCEPT - CORRECT ANSWER -Cash dividend option. What happens when the lifetime maximum benefit limit has been reached? - CORRECT 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)? - CORRECT ANSWER -The producer.