PSI life accident and health Study Guide Questions and Correct Answers
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Course
NU1426
Institution
NU1426
PSI life, accident, and health Study Guide Questions and Correct Answers
How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits?
A. immediately
B. 1 year
C. 2 years
D. At age 65
What is the return of premium rider?
A. an increasing ...
PSI life, accident, and health Study Guide
Questions and Correct Answers
1). How long after being entitled to disability benefits will an individual be eligible to receive
medicare benefits?
a. immediately
b. 1 year
c. 2 years
d. at age 65
Ans: 2 years
2). What is the return of premium rider?
a. an increasing amount of term insurance that always equals the total of premiums paid up
to the current point
b. a provision that allows the insured to cancel the policy in the first two years and have
premiums refunded
c. an increasing amount of term insurance that equals the cash value of the policy at any
point in time
d. a provision that states the insurer must return any premiums paid during the free-look
period
Ans: an increasing amount of term insurance that always equals the total of premiums
paid up to the current point
3). In a home healthcare benefit, all of the following are eligible expenses except
a. intermittent part-time nursing care;
b. physical, occupational, or speech therapy;
c. blood transfusions
d. medical social services;
Ans: blood transfusions
4). All of the following are classifications of risk except
a. substandard
b. preferred
c. declined
d. non-nicotine
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, Ans: non-nicotine
5). Which of the following is exempted from the incontestability provision in insurance
policies?
a. fraudulent misstatements
b. pre-existing conditions
c. change in health
d. changes in the insurance code
Ans: fraudulent misstatements
6). A group conversion option may be used in all the following instances except
a. the termination of the master policy.
b. loss of coverage due to loss of employment.
c. loss of eligibility on the part of a class of insureds.
d. a life-changing event, such as marriage, divorce, or childbirth.
Ans: a life-changing event, such as marriage, divorce, or childbirth.
7). Which of the following is characteristic of a non-qualified plan?
a. defined vesting schedule
b. plan established by the employer
c. plan does not meet federal guidelines for tax benefits
d. employer contributions are deductible business expenses
Ans: plan does not meet federal guidelines for tax benefits
8). What does it mean if a health policy is conditionally renewable?
a. insurer may elect not to renew based on the health of the insured.
b. insurer may elect not to renew for any reason only on the policy anniversary or premium
due date.
c. insurer may elect not to renew only under conditions specified in the policy.
d. insurer may elect not to review if the insured exceeds the maximum number of claims.
Ans: Insurer may elect NOT to renew only under conditions specified in the policy.
9). Which of the following is true of an equity-indexed annuity?
a. it is a variable annuity.
b. it may decrease in value.
c. it requires a securities license to sell.
d. it has a guaranteed minimum interest rate.
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, Ans: It has a guaranteed minimum interest rate
10). During which period of a disability income policy is coverage effective but during which no
benefits will be paid under the policy?
a. benefit period
b. elimination period
c. grace period
d. probationary period
Ans: probationary period
11). What specific new procedures does the usa patriot act require of insurance companies?
a. establish an anti-money laundering program
b. investigate applicants for potential terrorist links
c. report large transactions by charitable organizations
d. to take action against employees for failure to implement the act.
Ans: Establish an anti-money laundering program
12). A consumer report used to determine eligibility for insurance may include all of the
following except
a. character.
b. reputation.
c. credit information.
d. medical underwriting exam.
Ans: medical underwriting exam.
13). All of the following are true regarding incomplete applications except
a. the underwriting department will return the application to the agent.
b. the applicant will have to wait additional time before coverage begins.
c. there will be a delay in the underwriting process.
d. the incomplete application can be accepted with the missing information added later.
Ans: the incomplete application can be accepted with the missing information added
later.
14). Compared to basic hospital, medical and surgical policies, which type of insurance provides
broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?
a. medicaid insurance
b. major medical insurance
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