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PSI Insurance Exam questions with correct answers.
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PSI Insurance Exam questions with correct answers.
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PSI Insurance Exam questions with correct answersWhat 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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