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PSI EXAM QUESTIONS WITH CORRECT ANSWERS
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PSI EXAM QUESTIONS WITH CORRECT ANSWERS
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PSI EXAM QUESTIONS WITH CORRECTANSWERS
Which type of annuity covers two or more annuitants and provides monthly income only
until the first annuitant dies? - Answer-Joint life annuity
Which of the following is TRUE of an equity-indexed annuity? - Answer-It has a
guaranteed minimum interest rate
Which is the primary purpose of Health Reimbursement Accounts (HRAs)? - Answer-To
assist covered employees with the payment of medical expenses on a high deductible
plan funded through pre-tax contributions
A group conversion option may be used in all the following instances EXCEPT -
Answer-A life changing event, such as marriage, divorce, or childbirth
In which of the following does a covered employee agree to a reduction in
compensation so that the amount can be used to cover medical expenses? - Answer-
Flexible Spending Account (FSA)
Which problem was Universal Life insurance designed to address? - Answer-Low
interest rates during periods of high inflation
Which of the following policy types is considered double indemnity? - Answer-Accidental
death and dismemberment (AD&D)
Which insurance plans are commonly offered through the worksite (employer-
sponsored) EXCEPT? - Answer-Medicare
Which of the following is covered by a dread disease policy? - Answer-Illnesses that do
not occur frequently, but incur significant costs when they do occur
Which of the following lists the three common types of permanent individual life
insurance? - Answer-Variable Life, Whole Life, Universal Life
Which of the following coverage types pays a monthly cash benefit following the
elimination period for total disability due to accident or sickness? - Answer-Disability
income insurance
All of the following are characteristics of variable whole life EXCEPT - Answer-There is
no guaranteed minimum deaht benefit
Which of the following is TRUE for a flexible premium annuity? - Answer-The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount
, Which type of life policy can be continued year after year without a required medical
exam but rates are dependent on the insured's CURRENT age? - Answer-Renewable
term
Which of the following is TRUE of the limited-pay whole life policy? - Answer-Coverage
continues after the policy is paid-up
Which is the major reason by LTC insurance is becoming increasingly important? -
Answer-As life expectancy increases, the chances of needing LTC also increases
A basic vision care package includes all of the following EXCEPT - Answer-Safety
glasses
Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - Answer-Major medical insurance
Which of the following is a characteristic of Preferred Provider Organizations (PPOs)? -
Answer-Prearranged costs for services rendered
Which of the following is the most common method to supplement Medicare coverage?
- Answer-Coverage offered by private insurers
Which of the following is true about a decreasing term life policy? - Answer-The face
amount reaches zero at policy expiration
Which of the following is TRUE of a point-of-service (POS) plan? - Answer-A patient's
care is coordinate by an in-network primary care physician (PCP)
Which of the following is defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - Answer-Stop-Loss Limit
In order for an insurer to increase the premium on a non-cancelable policy, which of the
following MUST be true? - Answer-The premium increase must be in the contract at the
time it is issued
Under normal conditions which of the following is TRUE for proof of loss when a single
loss is claimed? - Answer-The insured has 90 days from the date of loss to provide
proof of loss
All of the following are features of the spendthrift clause EXCEPT - Answer-The
beneficiary may encumber the proceeds
What is the primary advantage for obtaining a reinstatement of a policy rather than
obtaining a new one? - Answer-Insured's original issue age is used
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