PSI Practice Exam Questions with
Verified Answers
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?
1. Only the individual's policy pays.
2. Both policies pay the full amount.
3. The individual's policy pays first, the spouse's policy pays the remaining up to
coverage amount.
4. 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.
Obtaining consumer information reports under false pretenses is prosecutable by which
of the following?
1. USA Patriot Act
2. Fair Credit Reporting Act
3. State laws where the applicant resides
4. Securities and Exchange Commission - Answer-Fair Credit Reporting Act
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?
1. prearranged costs for services rendered
2. providers receive a flat monthly amount for each user
3. ability to receive care at the same cost from any provider
4. emergency treatment is restricted to pre-selected hospitals - Answer-prearranged
costs for services rendered
Which type of coverage pays the operating costs of a small business when the owner
becomes disabled?
1. Business overhead expense disability insurance
2. Individual expense disability insurance
3. Key person expense disability insurance
4. Buy-Sell expense disability insurance - Answer-Business overhead expense disability
insurance
According to the time of payment of claims provision, the insurer must make the
payment immediately after receiving proof of loss EXCEPT
1. for claims involving periodic payments.
2. if the death is a suicide or due to a pre-existing condition.
, 3. when the policy is in the incontestability period
4. if the insured is able to eventually return to work. - Answer-for claims involving
periodic payments.
Which of the following is TRUE of a point of service plan?
1. Patients must submit claim forms for all services received.
2. The difference in cost between in-network and out-of-network is relatively small.
3. A patient's care is coordinated by an in-network primary care physician.
4. A patient may see any provider for any condition for the same cost and does not
need to consult a primary care physician. - Answer-A patient's care is coordinated by an
in-network primary care physician
Some states require life insurance policies to include a provision that gives the insurer
the right, at its own expense, to do which of the following?
1. require an autopsy
2. perform a financial audit of the insured
3. investigate the claims made on the application
4. perform a medical examination on the beneficiary - Answer-require an autopsy
Which of the following is considered the major advantage of HIPAA?
1. portability
2. increased coverage
3. qualified beneficiaries
4. tax deductibility of certain medical expenses - Answer-portability
What is an impairment rider?
1. It indefinitely extends the time to provide the proof of loss until after an impairment is
resolved.
2. It allows the reinstatement of a policy when an impairment is deemed to have caused
the policy lapse.
3. It lists specific conditions in the contract that are excluded from the contract
4. It states that a contract can be cancelled and premiums refunded if the policyholder
was mentally impaired at time of issue. - Answer-It lists specific conditions in the
contract that are excluded from the contract
Which plan is most commonly paired with a High Deductible Health Plan?
1. Emergency Medical Account (EMA)
2. Flexible Spending Account (FSA)
3. Health Reimbursement Account (HRA)
4. Health Savings Account (HSA) - Answer-Health Savings Account (HSA)
Verified Answers
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?
1. Only the individual's policy pays.
2. Both policies pay the full amount.
3. The individual's policy pays first, the spouse's policy pays the remaining up to
coverage amount.
4. 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.
Obtaining consumer information reports under false pretenses is prosecutable by which
of the following?
1. USA Patriot Act
2. Fair Credit Reporting Act
3. State laws where the applicant resides
4. Securities and Exchange Commission - Answer-Fair Credit Reporting Act
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?
1. prearranged costs for services rendered
2. providers receive a flat monthly amount for each user
3. ability to receive care at the same cost from any provider
4. emergency treatment is restricted to pre-selected hospitals - Answer-prearranged
costs for services rendered
Which type of coverage pays the operating costs of a small business when the owner
becomes disabled?
1. Business overhead expense disability insurance
2. Individual expense disability insurance
3. Key person expense disability insurance
4. Buy-Sell expense disability insurance - Answer-Business overhead expense disability
insurance
According to the time of payment of claims provision, the insurer must make the
payment immediately after receiving proof of loss EXCEPT
1. for claims involving periodic payments.
2. if the death is a suicide or due to a pre-existing condition.
, 3. when the policy is in the incontestability period
4. if the insured is able to eventually return to work. - Answer-for claims involving
periodic payments.
Which of the following is TRUE of a point of service plan?
1. Patients must submit claim forms for all services received.
2. The difference in cost between in-network and out-of-network is relatively small.
3. A patient's care is coordinated by an in-network primary care physician.
4. A patient may see any provider for any condition for the same cost and does not
need to consult a primary care physician. - Answer-A patient's care is coordinated by an
in-network primary care physician
Some states require life insurance policies to include a provision that gives the insurer
the right, at its own expense, to do which of the following?
1. require an autopsy
2. perform a financial audit of the insured
3. investigate the claims made on the application
4. perform a medical examination on the beneficiary - Answer-require an autopsy
Which of the following is considered the major advantage of HIPAA?
1. portability
2. increased coverage
3. qualified beneficiaries
4. tax deductibility of certain medical expenses - Answer-portability
What is an impairment rider?
1. It indefinitely extends the time to provide the proof of loss until after an impairment is
resolved.
2. It allows the reinstatement of a policy when an impairment is deemed to have caused
the policy lapse.
3. It lists specific conditions in the contract that are excluded from the contract
4. It states that a contract can be cancelled and premiums refunded if the policyholder
was mentally impaired at time of issue. - Answer-It lists specific conditions in the
contract that are excluded from the contract
Which plan is most commonly paired with a High Deductible Health Plan?
1. Emergency Medical Account (EMA)
2. Flexible Spending Account (FSA)
3. Health Reimbursement Account (HRA)
4. Health Savings Account (HSA) - Answer-Health Savings Account (HSA)
