PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM QUESTIONS AND ANSWERS

PSI: LIFE, ACCIDENT, AND HEALTH PRACTICE EXAM QUESTIONS AND ANSWERS 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 nonforfeiture 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. Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)? - ANS The producer. What is the waiver of premium provision? - ANS 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? - ANS Committing a misdemeanor Which is a disadvantage to a flexible premium annuity? - ANS The actual amount of the annuity benefit cannot be determined in advance. What does coninsurance mean? - ANS 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? - ANS 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? - ANS 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? - ANS 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? - ANS Participating policies pay dividends while non-participating policies do not. How does the per captia rule apply to proceeds from a life insurance policy? - ANS The proceeds are divided equally among living primary beneficiaries. How does a noncancelable policy differ from a guaranteed renewable policy? - ANS 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? - ANS Mode What is the return of premium rider? - ANS 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? - ANS 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: - ANS 2 year period All of the following are required signatures on a life insurance application EXCEPT? - ANS The minor in a juvenile policy.