PSI LIFE, ACCIDENT, AND HEALTH EXAM QUESTIONS AND
ANSWERS UPDATED
All of the following are characteristics of COBRA
EXCEPT
A. qualifying events.
B. notification statements.
C. continuation of coverage.
D. change in medical privacy procedures. - ANSWER
->change in medical privacy procedures.
What type of insurance should a company purchase
if it wants to insure the life of its CEO?
A. key person insurance
B. BOE insurance
C. group life policy
D. industrial life insurance - ANSWER ->key person
insurance
Which of the following is true about a decreasing
term life policy?
A. The cash value of the policy decreases over time.
,B. The face amount reaches zero at policy
expiration.
C. Premiums decrease over time but the amount of
coverage remains constant.
D. Commonly sold as a rider to another type of
policy to provide an additional death benefit. -
ANSWER ->The face amount reaches zero at policy
expiration.
For an individual long-term care policy there is an
annual dollar limit for tax deductions that is based
on which of the following?
A. Age
B. Cost of care
C. Policy value
D. Premium cost - ANSWER ->Age
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 soon
thereafter as is reasonably possible?
A. evidence of insurability
B. notice of claim
C. proof of loss
,D. supporting evidence for the claim - ANSWER -
>notice of claim
Managed care plans increase efficiency by all of the
following means EXCEPT
A. increasing beneficiary cost sharing.
B. controlling inpatient admissions and length of
stay.
C. selectively contracting with health care providers.
D. transferring the management of costs to the
insureds. - ANSWER ->transferring the management
of costs to the insureds.
Which of the following is an example of a premium
payment mode?
A. annual premium payment
B. payment by check
C. automatic deduction of premium
D. $200 per policy year - ANSWER ->annual
premium payment
How long after being entitled to disability benefits
will an individual be eligible to receive Medicare
benefits?
A. immediately
, B. 1 year
C. 2 years
D. At age 65 - ANSWER ->2 years
What is the return of premium rider?
A. an increasing amount of term insurance that
always equals the total of premiums paid up to the
current point
B. a provision that allows the insured to cancel the
policy in the first two years and have premiums
refunded
C. an increasing amount of term insurance that
equals the cash value of the policy at any point in
time
D. a provision that states the insurer must return
any premiums paid during the free-look period -
ANSWER ->an increasing amount of term insurance
that always equals the total of premiums paid up to
the current point
In a home healthcare benefit, all of the following
are eligible expenses EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
ANSWERS UPDATED
All of the following are characteristics of COBRA
EXCEPT
A. qualifying events.
B. notification statements.
C. continuation of coverage.
D. change in medical privacy procedures. - ANSWER
->change in medical privacy procedures.
What type of insurance should a company purchase
if it wants to insure the life of its CEO?
A. key person insurance
B. BOE insurance
C. group life policy
D. industrial life insurance - ANSWER ->key person
insurance
Which of the following is true about a decreasing
term life policy?
A. The cash value of the policy decreases over time.
,B. The face amount reaches zero at policy
expiration.
C. Premiums decrease over time but the amount of
coverage remains constant.
D. Commonly sold as a rider to another type of
policy to provide an additional death benefit. -
ANSWER ->The face amount reaches zero at policy
expiration.
For an individual long-term care policy there is an
annual dollar limit for tax deductions that is based
on which of the following?
A. Age
B. Cost of care
C. Policy value
D. Premium cost - ANSWER ->Age
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 soon
thereafter as is reasonably possible?
A. evidence of insurability
B. notice of claim
C. proof of loss
,D. supporting evidence for the claim - ANSWER -
>notice of claim
Managed care plans increase efficiency by all of the
following means EXCEPT
A. increasing beneficiary cost sharing.
B. controlling inpatient admissions and length of
stay.
C. selectively contracting with health care providers.
D. transferring the management of costs to the
insureds. - ANSWER ->transferring the management
of costs to the insureds.
Which of the following is an example of a premium
payment mode?
A. annual premium payment
B. payment by check
C. automatic deduction of premium
D. $200 per policy year - ANSWER ->annual
premium payment
How long after being entitled to disability benefits
will an individual be eligible to receive Medicare
benefits?
A. immediately
, B. 1 year
C. 2 years
D. At age 65 - ANSWER ->2 years
What is the return of premium rider?
A. an increasing amount of term insurance that
always equals the total of premiums paid up to the
current point
B. a provision that allows the insured to cancel the
policy in the first two years and have premiums
refunded
C. an increasing amount of term insurance that
equals the cash value of the policy at any point in
time
D. a provision that states the insurer must return
any premiums paid during the free-look period -
ANSWER ->an increasing amount of term insurance
that always equals the total of premiums paid up to
the current point
In a home healthcare benefit, all of the following
are eligible expenses EXCEPT
A. intermittent part-time nursing care;
B. physical, occupational, or speech therapy;
