PSI Life, Accident, and Health Insurance Practice Questions & Answers

Which of the following is TRUE of an equity-indexed annuity? - answer-It has a guaranteed minimum interest rate Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? - answer-major medical insurance Which of the following is TRUE for a flexible premium annuity? - answer-The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount Which problem was universal life insurance designed to address? - answer-low interest rates during periods of high inflation When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability? - answer-When there is a buy-sell agreement funded with disability insurance to buyout the interest of a deceased owner or partner A group conversion option may be used in all the following instances EXCEPT - answer-a life-changing event, such as marriage, divorce, or childbirth Which of the following policy types is considered double indemnity? - answer-accidental death Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age? - answer-Renewable term