PSI Insurance Exam (OH, Life, Accidents, and Health) 100%Verified.
What is it called when a life insurance policy pays a multiple of the coverage
... [Show More] 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 answerannuitant.
Which of the following is an example of a premium payment mode? - Correct answerannual 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 answerRoutine 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. [Show Less]