CA PSI-LIFE, ACCIDENT, AND HEALTH OR SICKNESS
PRACTICE EXAM 1 STUDY MATERIALS QUESTION
AND ANSWERS (VERIFIED ANSWERS)
1. **Which of the following is TRUE of a Point of Service plan?**
- A) A patient's care is coordinated by an in-network primary care physician.
- B) A patient's care is coordinated by any physician.
- C) There are no network restrictions for physicians.
- D) The plan only covers emergency care.
**Answer:** A) A patient's care is coordinated by an in-network primary care physician.
2. **In a Level term life policy, which always remains constant?**
- A) Death benefit
- B) Premiums
- C) Cash value
- D) Coverage period
**Answer:** A) Death benefit
3. **Which part of an insurance contract contains the promise to pay losses covered by the policy in
exchange for the insured’s premium and compliance with policy terms?**
,ESTUDY
- A) Exclusions
- B) Insuring clause
- C) Conditions
- D) Definitions
**Answer:** B) Insuring clause
4. **In a home healthcare benefit, all of the following are eligible expenses EXCEPT:**
- A) Home nursing care
- B) Physical therapy
- C) Blood transfusions
- D) Home health aide services
**Answer:** C) Blood transfusions
5. **In noncontributory plans, which percentage of eligible members must participate?**
- A) 75%
- B) 100%
- C) 50%
- D) 1%
**Answer:** B) 100%
6. **How are issues of ambiguity usually resolved because insurance contracts are contracts of
adhesion?**
- A) In favor of the insurer because the insurer drafts the language.
, ESTUDY
- B) In favor of the insured because the insurance company drafts the language in the contract.
- C) In favor of the courts.
- D) In favor of the state regulations.
**Answer:** B) In favor of the insured because the insurance company drafts the language in the
contract.
7. **Why is the accidental death benefit referred to as double indemnity?**
- A) It provides twice the face value in the policy for death due to accident.
- B) It covers two types of accidental deaths.
- C) It provides double the premium paid if death occurs.
- D) It covers accidental injuries only.
**Answer:** A) It provides twice the face value in the policy for death due to accident.
8. **Which types of rider reimburses health and social service expenses incurred in a convalescent or
nursing home facility?**
- A) Long term care rider
- B) Accidental death rider
- C) Disability rider
- D) Critical illness rider
**Answer:** A) Long term care rider
9. **All life insurance and health insurance contracts contain all of the following EXCEPT:**
- A) Insuring clause
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