PSI ACCIDENT AND HEALTH (Business
Insurance) NY PRACTICE EXAM QUESTIONS
AND ANSWERS COMPLETE RATED A.
A limited payment whole life policy provides
- Protection for 20 years
- Lifetime protection
- Protection for more than one person
- Discounted premiums
Verified Answer -Lifetime protection
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible
of $25. How much will she have to pay if she, not having met any of her
deductible, visits the doctor and receives a bill for $125?
- 25
- 50
-75
-100
Verified Answer -50
Which of these is NOT considered to be a risk factor in life insurance
underwriting
- Number of kids
- Health History
- Hobbies
,- Occupation
Verified Answer -# of kids
A master contract and certificate of coverage can be found in which type
of policy?
-Long term
-Medicaid
- Group
- Medicare
Verified Answer -Group
A guaranteed issue insurance policy as no
- Initial premium requirement
- Incontestable period
- Waiting period
- Medical underwriting
Verified Answer -- Medical underwriting
Guaranteed issue insurance - That means regardless of your health, you
cannot be declined or turned down. However, guaranteed issue life
insurance generally offers low death benefit options with higher than
normal premiums.
What types of life insurance are normally used for key employee
indemnification?
- Term, whole and universal life insurance
- Increasing term insurance
,- Joint, credit, and group life insurance
- Adjustable, permeant and limited pay life insurance
Verified Answer -- Term, whole and universal life insurance
Key employee indemnification- this is an insurance policy purchased by a
business to compensate that business for financial losses that would arise
from the death or long-term disability of important company employees
What is the nonforfeiture value of an annuity before annuitization?
-All premiums paid
- All premiums paid plus interest
- All premiums paid minus any withdrawals and surrender charges
- All premiums paid, plus interest, minus any withdrawals and surrender
charges.
Verified Answer -All premiums paid, plus interest, minus any withdrawals
and surrender charges.
Annuitization is the process of converting an annuity investment into a
series of periodic income payments. Annuities may be annuitized for a
specific period or for the life of the annuitant. ... Annuitants can arrange
for beneficiaries to receive a portion of the annuity balance upon their
death.
Which of these is NOT considered to be a common life insurance
nonforfeiture option
- Cash surrender
- Extended term insurance
- Reduced pain up insurance
-Life income annuity
Verified Answer -Life income annuity
, Life insurance policyholders can select one of four nonforfeiture benefit
options: the cash surrender value, extended term insurance, loan value,
and paid-up insurance
A life settlement intermediary is a
- Association which maintains a facility that displays offers and
counteroffers for purchases or sellers of life settlement contacts
- Person who, for a fee, solicits or negotiates a life settlement contract
between a policy owner and a life settlement provider
- Person who enters into a life settlement contract with the policy owner.
- Association which maintains a facility that displays offerers and
counteroffers for purchases or sellers of life settlement contract.
- Policy owner who sells his/her life insurance police to a third party
Verified Answer -Association which maintains a facility that displays
offerers and counteroffers for purchases or sellers of life settlement
contract.
In regards to a life insurance contract which of the following statements
is not true regrinding the concept of insurable interest
- Indivduals are assumed to have insurance interest in themselves
- Insurable interest is established by a court of law
- Insurable interest can be established sufficiently by sentimental
attachment alone
- Insurable interest must exist at the time of the application
Verified Answer -Insurable interest can be established sufficiently by
sentimental attachment alone
Which type of life. insurance offers flexible premiums a flexible health
benefit and the choice of how the cash value will be invested
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