PSI LIFE, ACCIDENT, AND HEALTH
PRACTICE EXAM-GRADED A
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? - ANS-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? - ANS-Notice of claim.
When will a policy pay on a UCR basis? - ANS-When particular benefits are not listed
on a payment schedule.
All of the following are non-forfeiture options EXCEPT - ANS-Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANS-The
insured will pay all of the remaining medial costs for as long as the policy is in force.
What specific new procedures does the USA Patriot Act require of insurance program? -
ANS-Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - ANS-The underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - ANS-Medical Underwriting exam.
Why are insurance policies considered conditional contracts? - ANS-Certain conditions
need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - ANS-When the
applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT? - ANS-The
incomplete application can be accepted with the missing information added later.
What is a MIB report? - ANS-Medical information on an applicant for assessing life or
health insurance risk.
, Obtaining consumer information reports under false pretenses is prosecutable by which
of the following? - ANS-Fair Credit Reporting Act
All of the following are classifications of risk EXCEPT? - ANS-Non-nicotine
Which type of receipt makes the insurer liable for the risk from the date of application,
regardless of the applicant's insurability? - ANS-Binding receipt
If the insurer wishes to share an applicant's HIV status, the applicant must be given full
notice of all of the following EXCEPT? - ANS-The treatment procedures that are
covered by the policy.
How do warranties differ from representations? - ANS-A warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
In noncontributory plans, which percentage of eligible members must participate? -
ANS-100%
Managed care plans increase efficiency by all of the following means EXCEPT? - ANS-
Transferring the management of costs to the insureds.
All of the following are tax qualified retirement plans EXCEPT? - ANS-Section 529 plan.
Which of the following is characteristic of a non-qualified plan? - ANS-Plan does not
meet federal guidelines for tax benefits.
Under which situation must insurable interest exist between the applicant and insured at
the time of application? - ANS-When a third-party application names themselves
beneficiary.
The group conversion option is allowed for all of the following EXCEPT? - ANS-During
the annual benefits enrollment period.
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? - ANS-The individual's
policy pays first, the spouse's policy pay the remaining up to coverage amount.
Why is rehabilitation considered worthy of federal help under workers' compensation? -
ANS-It reduces insurance losses and helps regain the worker's dignity.
When can the premiums of an individually owned health insurance policy be deducted
from the individual's income tax? - ANS-When the taxpayer's medical expenses exceed
7.5% of adjusted gross income during a taxable year.
PRACTICE EXAM-GRADED A
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? - ANS-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? - ANS-Notice of claim.
When will a policy pay on a UCR basis? - ANS-When particular benefits are not listed
on a payment schedule.
All of the following are non-forfeiture options EXCEPT - ANS-Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached? - ANS-The
insured will pay all of the remaining medial costs for as long as the policy is in force.
What specific new procedures does the USA Patriot Act require of insurance program? -
ANS-Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - ANS-The underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT? - ANS-Medical Underwriting exam.
Why are insurance policies considered conditional contracts? - ANS-Certain conditions
need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - ANS-When the
applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT? - ANS-The
incomplete application can be accepted with the missing information added later.
What is a MIB report? - ANS-Medical information on an applicant for assessing life or
health insurance risk.
, Obtaining consumer information reports under false pretenses is prosecutable by which
of the following? - ANS-Fair Credit Reporting Act
All of the following are classifications of risk EXCEPT? - ANS-Non-nicotine
Which type of receipt makes the insurer liable for the risk from the date of application,
regardless of the applicant's insurability? - ANS-Binding receipt
If the insurer wishes to share an applicant's HIV status, the applicant must be given full
notice of all of the following EXCEPT? - ANS-The treatment procedures that are
covered by the policy.
How do warranties differ from representations? - ANS-A warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
In noncontributory plans, which percentage of eligible members must participate? -
ANS-100%
Managed care plans increase efficiency by all of the following means EXCEPT? - ANS-
Transferring the management of costs to the insureds.
All of the following are tax qualified retirement plans EXCEPT? - ANS-Section 529 plan.
Which of the following is characteristic of a non-qualified plan? - ANS-Plan does not
meet federal guidelines for tax benefits.
Under which situation must insurable interest exist between the applicant and insured at
the time of application? - ANS-When a third-party application names themselves
beneficiary.
The group conversion option is allowed for all of the following EXCEPT? - ANS-During
the annual benefits enrollment period.
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? - ANS-The individual's
policy pays first, the spouse's policy pay the remaining up to coverage amount.
Why is rehabilitation considered worthy of federal help under workers' compensation? -
ANS-It reduces insurance losses and helps regain the worker's dignity.
When can the premiums of an individually owned health insurance policy be deducted
from the individual's income tax? - ANS-When the taxpayer's medical expenses exceed
7.5% of adjusted gross income during a taxable year.
