PSI INSURANCE EXAM (OH LIFE,
ACCIDENT, AND HEALTH ) 100%
VERIFIED.
Question : Under the misstatement of age or gender
provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?
Correct answer: Benefits are adjusted to an amount that
the premium would have purchased at the correct age or gender.
Question : Which of the following must be given to the
insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as thereafter as is reasonably possible?
Correct answer: Notice of claim.
Question : When will a policy pay on a UCR basis?
Correct answer: When particular benefits are not listed
on a payment schedule.
Question : All of the following are non-forfeiture options
EXCEPT
Correct answer: Cash dividend option.
Question : What happens when the lifetime maximum
benefit limit has been reached?
Correct answer: The insured will pay all of the
remaining medial costs for as long as the policy is in force.
Question : Whose responsibility is it to make sure that
the company is notified of a death claim at the earliest possible opportunity (in most cases)?
Correct answer: The producer.
Question : What is the waiver of premium provision?
Correct answer: In a long term care contract, the
premium is waived after the insured has been confined for a specific period of time.
Question : All of the following are common exclusions
from loss found in disability income policies EXCEPT for that incurred while?
Correct answer: Committing a misdemeanor
Question : Which is a disadvantage to a flexible
premium annuity?
Correct answer: The actual amount of the annuity benefit
cannot be determined in advance.
Question : What does coninsurance mean?
Correct answer: The insurer and the insured share
expenses over the deductible.
Question : Under normal conditions which of the
following is TRUE for proof of loss when a single loss is claimed?
Correct answer: The insured has 90 days from the date of
loss to provide proof of loss.
Question : Which one of the following represents an
advantage of obtaining a policy loan versus a withdrawal?
Correct answer: The loan is not taxed while a withdrawal
is taxed for amounts above the contract cost basis.
Question : All of the following statements define
preexisting conditions EXCEPT?
Correct answer: Any chronic health condition that
presents symptoms and which was unknown at the time of application.
Question : Which is the difference between participating
and non-participating?
Correct answer: Participating policies pay dividends
while non-participating policies do not.
Question : How does the per captia rule apply to
proceeds from a life insurance policy?
Correct answer: The proceeds are divided equally among
living primary beneficiaries.
Question : How does a noncancelable policy differ from
a guaranteed renewable policy?
Correct answer: With the noncancelable policy the
insurer may increase premiums only based on the terms of the policy.
Question : Which of the following refers to how often a
premium is paid?
Correct answer: Mode
Question : What is the return of premium rider?
Correct answer: An increasing amount of term insurance
that always equals the total of premiums paid up to the current point.
Question : What does first dollar coverage mean?
Correct answer: As soon as covered medical expenses
are incurred, the policy begins to pay.