PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE
EXAM 2023 QUESTIONS AND ANSWERS COMPLETE
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?
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?
Notice of claim.
When will a policy pay on a UCR basis?
When particular benefits are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT
Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached?
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)?
The producer.
What is the waiver of premium provision?
In 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?
Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity?
The actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean?
The 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?
The 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?
The 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?
Any chronic health condition that presents symptoms and which was unknown at the
time of application.
Which is the difference between participating and non-participating?
Participating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy?
, The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy?
With 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?
Mode
What is the return of premium rider?
An increasing amount of term insurance that always equals the total of premiums paid
up to the current point.
What does first dollar coverage mean?
As 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:
2 year period
All of the following are required signatures on a life insurance application
EXCEPT?
The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)?
The 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?
The applicant and possibly the agent initial any changes made.
What specific new procedures does the USA Patriot Act require of insurance
program?
Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and
the initial premium paid?
The underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of
the following EXCEPT?
Medical Underwriting exam.
Why are insurance policies considered conditional contracts?
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy?
When the applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT?
The incomplete application can be accepted with the missing information added later.
What is a MIB report?
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?
Fair Credit Reporting Act
All of the following are classifications of risk EXCEPT?
Non-nicotine
EXAM 2023 QUESTIONS AND ANSWERS COMPLETE
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?
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?
Notice of claim.
When will a policy pay on a UCR basis?
When particular benefits are not listed on a payment schedule.
All of the following are non-forfeiture options EXCEPT
Cash dividend option.
What happens when the lifetime maximum benefit limit has been reached?
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)?
The producer.
What is the waiver of premium provision?
In 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?
Committing a misdemeanor
Which is a disadvantage to a flexible premium annuity?
The actual amount of the annuity benefit cannot be determined in advance.
What does coninsurance mean?
The 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?
The 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?
The 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?
Any chronic health condition that presents symptoms and which was unknown at the
time of application.
Which is the difference between participating and non-participating?
Participating policies pay dividends while non-participating policies do not.
How does the per captia rule apply to proceeds from a life insurance policy?
, The proceeds are divided equally among living primary beneficiaries.
How does a noncancelable policy differ from a guaranteed renewable policy?
With 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?
Mode
What is the return of premium rider?
An increasing amount of term insurance that always equals the total of premiums paid
up to the current point.
What does first dollar coverage mean?
As 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:
2 year period
All of the following are required signatures on a life insurance application
EXCEPT?
The minor in a juvenile policy.
What is the purpose of Stranger-originated life insurance (STOLI)?
The 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?
The applicant and possibly the agent initial any changes made.
What specific new procedures does the USA Patriot Act require of insurance
program?
Establish an anti-money laundering program.
Which of the following occurs immediately after the application is submitted and
the initial premium paid?
The underwriting process begins.
A consumer report used to determine eligibility for insurance may include all of
the following EXCEPT?
Medical Underwriting exam.
Why are insurance policies considered conditional contracts?
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy?
When the applicant for the policy is not the insured.
All of the following are TRUE regarding incomplete applications EXCEPT?
The incomplete application can be accepted with the missing information added later.
What is a MIB report?
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?
Fair Credit Reporting Act
All of the following are classifications of risk EXCEPT?
Non-nicotine
