CA PSI SITE INSURANCE LIFE DEATH AND
ACCIDENT OR SICKNESS EXAM LATEST 2025
WITH REAL QUESTIONS AND WELL-VERIFIED
CORRECT ANSWERS | ALREADY GRADED A+ |
GUARANTEED PASS | CA PSI INSURANCE EXAM
FINAL 2025 [NEW]
When the suicide clause is inserted in a life insurance contract, death by suicide is
not covered during the policy's initial: - ANSWER- 2 year period
Lists the three common types of permanent individuals life insurance? - ANSWER- Variable Life, Whole life , Universal Life
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 characteristic of a non-qualified plan? - ANSWER- plan does not meet federal guidelines for tax benefits
what type of insurance should a company purchase if it wants to insure the life of its CEO - ANSWER- key person insurance
All of the following are tax qualified retirement plan except - ANSWER- section 529 plan
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A consumer report used to determine eligibility - ANSWER- medical underwriting exam
Which type of receipt makes the insurer liable for the risk from the date of application, regardless of the applicant's insurability? - ANSWER- Binding receipt
When does insurable interest come into play in a life insurance policy? - ANSWER- when the applicant for the policy is not the insured
which is a primary difference between individual and group health insurance - ANSWER- Individual insurance requires evidence of insurability.
In a Level term life policy, which always remains constant? - ANSWER- death benefit
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? - ANSWER- insuring clause
In a home healthcare benefit, all of the following are eligible expenses EXCEPT - ANSWER- blood transfusions
in noncontributory plans, which percentage of eligible members must participate? -
ANSWER- 1
How are issues of ambiguity usually resolved because insurance contracts are contracts of adhesion? - ANSWER- In favor of the insured because the insurance company drafts the language in the contract.
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Why is the accidental death benefit referred to as double indemnity? - ANSWER- It provides twice the face value in the policy for death due to accident.
which types of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility - ANSWER- long term care rider
What term describes the concept that the insurer and the insured share in the cost of medical expenses, with the insurer bearing the greater share? - ANSWER- Coinsurance
A provision stating that persons with health insurance and their insurers will share
covered losses in an agreed proportion is called: - ANSWER- Coinsurance
Many major medical policies include a provision whereby when expenses reach a certain dollar amount the insured no longer shares in the cost of expenses; the
insurer pay 100% of remaining covered charges. This is referred to as: -
ANSWER- Stop loss limit
Which of the following is NOT an example of cost sharing in a health insurance policy? - ANSWER- Coordination
On a major medical policy when two or three family members have satisfied the
deductible for the entire family, this is referred to as: - ANSWER- Family
deductible
When medical expense policies do not state specific dollar benefit amounts, but instead base payments upon the charges for like services in the same geographical area, benefits are designated as which of the following? - ANSWER- Usual, customary, and reasonable charges.
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A health maintenance organization (HMO) plan contains costs by promoting: -
ANSWER- Preventive Care
In HMO's, the use of a primary care physician is common as part of the: -
ANSWER- Gatekeepers System
Under an HMO, when physicians receive a flat monthly payment from the HMO for every member without regard to actual services provided by the physician, this
is known as: - ANSWER- Capitation Fee
HMO's are required to provide for all of the following except: - ANSWER-
Prescription Drugs
Waiver of Premium Rider: - ANSWER- allows insured to waiver premium during
a period of total disability
Who would be considered a claimant on a disability income policy? - ANSWER- Insured
An insured's disability income policy defines total disability as the "insured's inability to perform the duties of any occupation for which he or she is reasonably qualified by education, training, or experience." This definition is known as the: - ANSWER- "Any Occupation" definition and is more restrictive than other definitions
Own Occupation: - ANSWER- Defines total disability as the insured's inability to perform any/all of the duties of their OWN occupation as a result of sickness or accident
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