Exam (elaborations)
PSI Insurance Exam.
- Course
- Institution
Exam of 27 pages for the course PSI Practice at PSI Practice (PSI Insurance Exam.)
[Show more]
Seller
Follow
EXAMQA
Reviews received
Content preview
PSI Insurance ExamWhat must the policy summary in a life insurance policy include?1. conditional
receipt and the insurer's home office address2. reserve deposits.3. the name and
address of the insurance agent or broker4. definition of replacement.
the name and address of the insurance agent or broker
Which of the following statements is CORRECT about Medicare Supplement
Insurance?1. An agent must provide an outline of coverage to an insured at the
time of policy delivery.2. If an applicant has an existing Medicare Supplement
Policy, the information does not have to be mentioned on the new application.3.
Replacement of a Medicare Supplement Policy is prohibited unless approved by
the Commissioner of Insurance.4. Duplication of Medicare Supplement coverage
is prohibited.
Duplication of Medicare Supplement coverage is prohibited.
Replacement refers to which of the following?1. replacing an existing policy with
a new one2. replacing a beneficiary3. replacing one insured with another4.
replacing the original policy with a copy
replacing an existing policy with a new one
An insured MUST present evidence of insurability and pay all overdue premiums
with interest after a policy has lapsed in order to exercise which policy
provision?1. Conversion.2. Reinstatement.3. Ownership.4. Guaranteed
Renewability.
Reinstatement.
When replacing existing life insurance, what must an agent do?1. Collect the
in-force policies and send them to the replacing company.2. Specify what
constitutes the replacement.3. Notify the producer whose policy is being
,replaced.4. Inform the applicant that the new policy face amount must be higher
than the replaced policy.
Inform the applicant that the new policy face amount must be higher than the
replaced policy.
In order for an insurer to increase the premium on a noncancelable policy, which
of the following MUST be true?1. The premium increase must be in the contract
at the time it is issued.2. The insured develops a medical condition that increases
risk.3. The insured reaches the age of 65.4. The premium increase must be in
line with current inflation rates.
The premium increase must be in the contract at the time it is issued
An agent who offers to pay the first insurance premium as an inducement for an
applicant to purchase a policy may be found guilty of1. rebating.2. twisting.3.
controlled business.4. unfair discrimination.
rebating
What is the purpose of Stranger-originated life insurance (STOLI)?1. the policy is
originated primarily or solely for the purpose of resale2. the policy is written so as
to avoid proof of insurable interest3. it is a method of insuring a person who has
been previously declined.4. it is a fraudulent policy meant for financial gain of
someone unknown to the insured.
the policy is originated primarily or solely for the purpose of resale
What is the minimum grace period for monthly accident and health insurance
policies?1. 7 days2. 10 days3. 31 days4. 90 days
31 days
An insurance agent is defined as an individual who transacts business on behalf
of1. a client.2. his/her agency.3. an insured.4. an insurance company.
an insurance company
, An employee is laid off and converts a group health plan to an individual policy. In
this situation, the new policy1. will include a probationary period.2. will exclude
preexisting conditions for 6 months.3. premium rate will be higher than the group
rate.4. requires evidence of insurability.
premium rate will be higher than the group rate
Which of the following is defined as the dollar amount beyond which the insured
no longer participates in the payment of medical expenses?1.
Deductible2. Stop Loss Limit3. Maximum Benefit4. Coinsurance
Stop Loss Limit
All of the following are characteristics of variable whole life EXCEPT 1.
the premium is level2. there is no guaranteed cash value3. there is no
guaranteed minimum death benefit.4. the agent must be licensed in both
insurance and securities.
there is no guaranteed minimum death benefit.
A group conversion option may be used in all the following instances EXCEPT1.
the termination of the master policy.2. loss of coverage due to loss of
employment.3. loss of eligibility on the part of a class of insureds.4. a
life-changing event, such as marriage, divorce, or childbirth.
a life-changing event, such as marriage, divorce, or childbirth.
All of the following are characteristics of COBRA EXCEPT 1.
qualifying events.2. notification statements.3. continuation of coverage.4. change
in medical privacy procedures.
change in medical privacy procedures.
Which of the following is TRUE of an equity-indexed annuity?1.
It is a variable annuity.2. It may decrease in value.3. It requires a securities
license to sell.4. It has a guaranteed minimum interest rate.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXAMQA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now