PSI Life, Accident, and Health Practice Exam with complete solutions 2023, Exams of Nursing

Download PSI Life, Accident, and Health Practice Exam with complete solutions 2023 and more Exams Nursing in PDF only on Docsity! 1 1 PSI Life, Accident, and Health Practice Exam with complete solutions 2023 A group conversion option may be used in all the following instances EXCEPT - ANSWER-a life-changing event, such as marriage, divorce, or childbirth. 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. All of the following are characteristics of variable whole life EXCEPT - ANSWER-there is no guaranteed minimum death benefit. When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability? - ANSWER-When there is a buy-sell agreement funded with life insurance to buyout the interest of a deceased owner or partner. Which of the following is TRUE of a point of service plan? - ANSWER-A patient's care is coordinated by an in-network primary care physician. 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 insuran Which of the following is TRUE of an equity-indexed annuity? - ANSWER-It has a guaranteed minimum interest rate. All of the following are characteristics of COBRA EXCEPT - ANSWER-change in medical privacy procedures. In which of the following does a covered employee agree to a reduction in compensation so 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 A basic vision care package includes all of the following EXCEPT - ANSWER-safety glasses Which of the following is the most common method to supplement Medicare coverage? - ANSWER-Coverage offered by private insurers 2 2 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. 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 States generally define a true "group" for insurance as requiring a minimum of how many participants? - ANSWER-10 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 Which is the major reason why long term care insurance is becoming increasingly important? - ANSWER-As life expectancy increases, the chances of needing long term care also increase Which of the following is TRUE of the limited pay whole life policy? - ANSWER- Coverage continues after the policy is paid-up. 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 is true about a decreasing term life policy? - ANSWER-The face amount reaches zero at policy expiration. Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age? - ANSWER- renewable term Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies? - ANSWER-Joint Life What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one? - ANSWER-insured original issue age is used At which point are contractual death benefit settlement options determined and by whom? - ANSWER-At the time the policy is purchased by the owner of the policy What does it mean if a health policy is conditionally renewable? - ANSWER-Insurer may elect NOT to renew only under conditions specified in the policy. 5 5 All of the following are classifications of risk EXCEPT - ANSWER-non-nicotine Which of the following was specifically designed to address STOLI and IOLI practices? - ANSWER-NCOIL Act A consumer report used to determine eligibility for insurance may include all of the following EXCEPT - ANSWER-medical underwriting exam. Obtaining consumer information reports under false pretenses is prosecutable by which of the following? - ANSWER-Fair Credit Reporting Act All of the following are TRUE regarding incomplete applications EXCEPT - ANSWER- the incomplete application can be accepted with the missing information added later. Why is rehabilitation considered worthy of federal help under workers' compensation? - ANSWER-it reduces insurance losses and helps regain the worker's dignity The group conversion option is allowed for all of the following EXCEPT - ANSWER- during the annual benefits enrollment period. For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following? - ANSWER-age Managed care plans increase efficiency by all of the following means EXCEPT - ANSWER-transferring the management of costs to the insureds. In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness? - ANSWER-The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount. 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 plans EXCEPT - ANSWER-Section 529 plan. Short term disability insurance generally only covers injuries due to which of the following? - ANSWER-Non-occupational injuries Which of the following is characteristic of a nonqualified plan? - ANSWER-plan does not meet federal guidelines for tax benefits Under which situation must insurable interest exist between the applicant and insured at the time of application? - ANSWER-When a third-party applicant names themselves beneficiary. 6 6 When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax? - ANSWER-when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs? - ANSWER-It is financially insufficient to cover end of life expenses. In noncontributory plans, which percentage of eligible members must participate? - ANSWER-100% Which of the following amends the Social Security Act to make Medicare secondary to group health plans? - ANSWER-TEFRA In a home healthcare benefit, all of the following are eligible expenses EXCEPT - ANSWER-blood transfusions How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits? - ANSWER-2 years All of the following are requirements to qualify for Social Security disability benefits EXCEPT when - ANSWER-unable to work in occupation in which the worker was trained or educated