Exam Questions Answers

PSI Life, Accident, Health Practice Exam Questions & Answers

Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans?

• The insurer is able to cancel, or deny renewal of an existing policy, based

solely on the health of the insured.

• There is no restriction for benefits after the coverage has been in effect for six

months when involving a preexisting condition.

• The coverage for a loss from an illness or disease is treated differently than

for a loss resulting from an injury due to an accident.

• The coverage for a spouse cannot be terminated for any reason, including for

nonpayment of premiums.

Answer:

• There is no restriction for benefits after the coverage has been in effect for

six months when involving a preexisting condition.

How is the insurance commissioner chosen?

• Elected by the people.
• Appointed by the Governor
• Selected by a vote in the House and the Senate.
• Randomly selected from a list of qualified candidates.

Answer:

• Elected by the people.

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An insurance agent is a person who transacts all of the following types of

insurance EXCEPT:

• annuities.
• homeowners.
• auto insurance.
• life insurance.

Answer:

• life insurance.

The California Legislature declared all of the following when creating the

Healthy Families Program EXCEPT:

• that most uninsured children come from low-income families.
• lack of educational resources for children and their parents leads to

increased medical expenses.

• that lack of insurance coverage for children results in reduced access to

medical services.

• when a child is seriously ill or injured, the costs of needed medical care can

force families into financial ruin.

Answer:

• lack of educational resources for children and their parents leads to

increased medical expenses.

Which of the following BEST defines the general concept of the 24-hour care plan?

• It integrates worker’s compensation medical care with the care provided by

group health insurance.

• It provides immediate medical care from any source for injuries on which

occur on the job. 2 / 4

• It permits non job related injuries to be treated through the worker?s

compensation program.

• It pays any medical bill from a job related injury for services within the first

24 hours of the injury.

Answer:

• It integrates workers compensation medical care with the care provided by

group health insurance.

How does an "admitted" person differ from an "non-admitted" person, as it pertains to insurance?

• An "admitted" person has admitted to a crime or fraud, while a "non-

admitted" person has not.

• An "admitted" person has been granted admission to an insurance

association, while a "nonadmitted" person has not been accepted.

• An "admitted" person has been admitted to an accreditation program, while a

"nonadmitted" person has yet to earn the credits.

• An "admitted" person has the right to transact insurance business within the

state, while a "nonadmitted" person is not entitled to this action.

Answer:

• An "admitted" person has the right to transact insurance business within

the state, while a "nonadmitted" person is not entitled to this action.

When may a licensee surrender for cancellation any license under which they are permitted to act?

• upon renewal of the license
• within 60 days of renewal of their license
• at any time
• when they no longer have any clients with policies in force

Answer: 3 / 4

• at any time

When does a disability policy become incontestable as to the statements contained in the application?

• After this policy been in force for a period of one year during the lifetime of

the insured.

• After this policy been in force for a period of two years during the lifetime of

the insured.

• When the company has confirmed all of the statements and issued a binding

contract.

• Two years after the date of the application when a conditional receipt has

been issued.

Answer:

• After this policy been in force for a period of two years during the lifetime of

the insured.

Which statement describes the intent of the California Financial Information Privacy Act?

• It enables and authorizes the Gramm-Leach-Bliley Act into California legal

system.

• It permits civil lawsuits against financial institutions who violate the Gramm-

Leach-Bliley Act.

• It provides greater privacy protections than those provided in the federal

Gramm-Leach-Bliley Act.

• It permits greater flexibility to financial institutions than privacy protections

enacted in Gramm-Leach-Bliley Act.

Answer:

• It provides greater privacy protections than those provided in the federal

Gramm-Leach-Bliley Act.

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