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PSI Life, Accident, Health Practice Exam Questions
AND ANSWERS| GRADED A|(210 QUESTIONS)
Question 1: Under the misstatement of age or gender provision,
what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
CORRECT answer: Benefits are adjusted to an amount that the
premium would have purchased at the CORRECT age or gender.
Question 2: Which of the following must be given to the insurer
within 20 days after occurrence or commencement of any loss covered by the policy, or as thereafter as is reasonably possible?
CORRECT answer: Notice of claim.
Question 3: When will a policy pay on a UCR basis?
CORRECT answer: When particular benefits are not listed on a
payment schedule.
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Question 4: All of the following are non-forfeiture options
EXCEPT
CORRECT answer: Cash dividend option.
Question 5: What happens when the lifetime maximum benefit
limit has been reached?
CORRECT answer: The insured will pay all of the remaining
medial costs for as long as the policy is in force.
Question 6: Whose responsibility is it to make sure that the
company is notified of a death claim at the earliest possible opportunity (in most cases)?
CORRECT answer: The producer.
Question 7: What is the waiver of premium provision?
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CORRECT answer: In a long term care contract, the premium is
waived after the insured has been confined for a specific period of time.
Question 8: All of the following are common exclusions from
loss found in disability income policies EXCEPT for that incurred while?
CORRECT answer: Committing a misdemeanor
Question 9: Which is a disadvantage to a flexible premium
annuity?
CORRECT answer: The actual amount of the annuity benefit
cannot be determined in advance.
Question 10: What does coinsurance mean?
CORRECT answer: The insurer and the insured share expenses
over the deductible.
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Question 11: Under normal conditions which of the following is
TRUE for proof of loss when a single loss is claimed?
CORRECT answer: The insured has 90 days from the date of
loss to provide proof of loss.
Question 12: Which one of the following represents an
advantage of obtaining a policy loan versus a withdrawal?
CORRECT answer: The loan is not taxed while a withdrawal is
taxed for amounts above the contract cost basis.
Question 13: All of the following statements define preexisting
conditions EXCEPT?
CORRECT answer: Any chronic health condition that presents
symptoms and which was unknown at the time of application.
Question 14: Which is the difference between participating and
non-participating?