Exam (elaborations)
PSI Insurance Exam OH Life, Accident, and Health
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- PSI Practice
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- PSI Practice
PSI Insurance Exam OH Life, Accident, and Health
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PSI Insurance Exam OH Life, Accident,and Health
What is it called when a life insurance policy pays a multiple of the coverage
amount when certain types of accidents occur? - CORRECT ANSWER-multiple
indemnity
Upon the issuance of a conditional receipt for a renewal when the premium is
paid AFTER the time granted by the insurer, what is the maximum amount of
time for reinstatement of the policy? - CORRECT ANSWER-30 days
Which of the following statements regarding a pure life annuity payout option is
correct? - CORRECT ANSWER-This option provides the highest monthly
income.
Which of the following does not apply to the time limit on certain defenses
provision in health insurance policies? - CORRECT ANSWER-fraudulent
misstatements
If an individual is insured by both their own health insurance policy and their
spouse's policy, which policy pays first in the event of an illness? - CORRECT
ANSWER-The individual's policy pays first, the spouse's policy pays the
remaining up to coverage amount.
When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - CORRECT ANSWER-when the
taxpayer's unreimbursed medical expenses exceed 7.5% of adjusted gross
income during a taxable year
When the suicide clause is inserted in a life insurance contract, death by suicide
is not covered during the policy's initial - CORRECT ANSWER-2 year period.
Which of the following is a characteristic of Health Maintenance Organizations
(HMOs)? - CORRECT ANSWER-preventive care
,The life insurance policy will not be truly effective until all of the following occur
EXCEPT - CORRECT ANSWER-the producer has explained the policy to the
client.
Under which situation must insurable interest exist between the applicant and
insured at the time of application? - CORRECT ANSWER-when a third-party
applicant names themselves beneficiary
Which of the following is a distinguishing feature of a variable life insurance
policy? - CORRECT ANSWER-The cash value earnings are based on the
performance of the separate account.
The person who receives the benefit of an annuity is known as the - CORRECT
ANSWER-annuitant.
Which of the following is an example of a premium payment mode? - CORRECT
ANSWER-annual premium payment
How do most disability policies handle the case of a recurrent disability occurring
at least 90 days after the first claim? - CORRECT ANSWER-it must be handled
as a new claim for a new period of disability, requiring a new elimination period.
Which of the following is true for most comprehensive dental policies? -
CORRECT ANSWER-Routine care is provided without coinsurance or
deductibles.
Under a Medicare Supplement Policy, preexisting conditions CANNOT be
excluded after how many months from the effective date of the policy? -
CORRECT ANSWER-6 months
What does an application for insurance contractually represent for the insured? -
CORRECT ANSWER-an offer
Which of the following is exempted from the incontestability provision in
insurance policies? - CORRECT ANSWER-fraudulent misstatements
, Which of the following may be thought of as a time deductible rather than a dollar
deductible in a disability income policy because benefits are not payable during
that time? - CORRECT ANSWER-elimination period
How long after being entitled to Social Security disability benefits will an
individual be eligible to receive Medicare benefits? - CORRECT ANSWER-2
years
If a policy is determined to be a Modified Endowment Contract (MEC), funds
received under the policy will be - CORRECT ANSWER-considered taxable
income first.
Which type of annuity attempts to offset inflation by providing a benefit linked to
an underlying investment account? - CORRECT ANSWER-variable
What is a MIB report? - CORRECT ANSWER-medical information on an
applicant for assessing life or health insurance risk
Group Life Policies typically include which of the following provisions? -
CORRECT ANSWER-conversion privilege
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? - CORRECT
ANSWER-The individual's policy pays first, the spouse's policy pays the
remaining up to coverage amount.
The feature of a Life Insurance Policy stating that the policy will NOT cover
certain risks is known as - CORRECT ANSWER-exclusion.
The primary purpose of Health Reimbursement Accounts (HRAs) is to assist -
CORRECT ANSWER-covered employees with the payment of medical expenses
on a high deductible plan funded through pre-tax contributions.
What type of insurance should a company purchase if it wants to insure the life of
its CEO? - CORRECT ANSWER-key person insurance
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