PSI LIFE INSURANCE EXAM LATEST 2024/2025 REAL EXAM 200+ QUESTIONS AND CORRECT ANSWERS, Exams of Nursing

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PSI LIFE INSURANCE

EXAM LATEST 2024 /2025 REAL

EXAM 200+ QUESTIONS AND

CORRECT ANSWERS/GRADED A+

The widower of an agent was issued a temporary license 30 days ago. How much longer can he legally serve under the license? ANSWER- 150 days Gross Premium - ANSWER Mortality-Interest+Expense Cease and desist order - ANSWER The Insurance Department has received complaints about a particular producer regarding policy-selling conduct. What can be issued that would legally force the producer to stop Creditor is the policyowner - ANSWER Which of the following is TRUE about credit life insurance Prevent overutilization and malingering - ANSWER Under a disability income policy, the insurer does not pay a monthly benefit that is equal to the insured's previous income. The reason for paying a benefit amount that is less than the insured's income is to The insured's estate - ANSWER A 40-year-old man buys a whole life policy and names his wife as his only beneficiary. His

wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to Express and implied - ANSWER Which of the following are the authorities that an agent can hold The insurer can increase the policy premium on an individual basis - ANSWER Which of the following are the is not a feature of a guarnteed renewable provision insuring clause - ANSWER The section of a health policy that states the cause of eligible loss under which an insured is assumed to be disabled is the Life income with period certain - ANSWER Which life insurance settlement option gurantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary Continuation provision - ANSWER Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to change premium amounts Lump sum - ANSWER What is the other term for the cash payment settlement option

Payment of claims - ANSWER Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner No later than 1 year from the time of purchase - ANSWER Your client uses 50,000 in inheritance money to purchase a single premium immediate annuity. How soon can he begin receiving income payments The insureds medical history - ANSWER Which of the following are generally not considered when underwriting group insurance 25% - ANSWER The limit on controlled business is $25,000 - ANSWER Andy the producer violates the Insurance Code very intentionally in order to substantially increase his commissions. How much would he likely be penalized? The insurer may terminate the contract only at renewal for certain conditions - ANSWER Which of the following is NOT a feature of a noncancellable policy Pay-in-Period - ANSWER Which of the following is another term for the accumulation period of annuity? The insurer can increase the policy premium on an individual basis - ANSWER Which of the following is NOT a feature of a guaranteed renewable provision?

Insuring Clause - ANSWER The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the: Prospective Review - ANSWER What would a physician utilize if he/she wanted to know if a treatment is covered under an insured's plan plan and at what rate it will be paid? 25% - ANSWER The limit on controlled business is The capital amount in a lump sum - ANSWER An insured loses her left arm in an accident that is covered by her Accidental Death and Dismemberment policy. What kind of benefit will she most likely receive from this policy? Annually Renewable Term - ANSWER All other factors being equal the least expensive first-year premium payment is found in? Entire Contract Clause - ANSWER The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is contained in the contract is the Fixed-Period Installments - ANSWER All of the following are dividend option except It has the highest amount of insurance protection - ANSWER What is the benefit of choosing extended term as a non forfeiture option?

That its policies are covered by a state Curranty Association - ANSWER Which of the following is NOT to be included in an insurance company's advertisement 8am until 9pm - ANSWER According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls? The insured was in compliance with the policy requirements regarding claims - ANSWER An insured submitted a notice of claim to the insurer , but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand written letter to the insurer. Which of the following would be true? A statement of good healh - ANSWER When the policy premium wasn't submitted with the application, what should the agent obtain from the insured upon policy delivery Attending Physician Statement - ANSWER An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require Insurers are barred from requesting HIV testing - ANSWER Which of the following statements regarding HIV testing for life insurance purposes is not true the performance of the policy portfolio - ANSWER Which of the following determines the cash value of a variable life policy

Antibiotics - ANSWER Which of the following hospice expenses would not be covered in a cost-containment setting Must be informed of the source of the report - ANSWER Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report Respond to the consumer's complaint - ANSWER Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency Target Premium - ANSWER Which of the following would help prevent a universal life policy from lapsing 12 - ANSWER A licensed life producer has completed 12 of his continuing education hours for this period. How much more will he have to finish An anually renewable term policy with a cash value account - ANSWER A Universal life insurance policy is best described as Return the application to the applicant for a signature - ANSWER If an agent fails to obtain an applicant's signature on the application the agent must First premium has been paid and the application has been approved - ANSWER Health coverage becomes effective when the

The benefits will be corodinated - ANSWER A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid It has the highest amount of insurance protection - ANSWER What is the benefit of choosing extended term as a nonforfeiture option 150 days - ANSWER The widower of an agent was issued a temporary license 30 days ago. How much longer can he legally serve under this license The period of time during which accumulated money is converted into income payments - ANSWER Which off the following best describes what the annuity period is may not be declined soley for HIV - ANSWER Which of the following is true about the requirements regarding HIV exams A presentation of nonguaranteed elements of a policy - ANSWER The term illustration in a life insurance policy refers to Level term - ANSWER A policy will pay the death benefit if the insured dies during the 20-year premium paying period and nothing if death occurs after the 20-year period. What type of policy is this?

Calls baed form outside of the US - ANSWER Which of the following would NOT be considered an exception to the National Do Not Call List? Revocable beneficiary - ANSWER A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the They are available for an additional premium - ANSWER Which of the following is true regarding optional benefits with long-term care policies Insurer's executive officer - ANSWER Which of the following entities has the authority to make changes to an insurance policy Installments for a long period - ANSWER Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be 150 days - ANSWER The widower of an agent was issued a temporary license 30 days ago. How much longer can he legally serve under the license? She can appear in the advertisement under the condition that her connection to the company is discussed - ANSWER The human resources director of an insurance company loves the policy she has with the company. She's personable and the

company wants to use her in a new investment. Which of the following statements pertaining to the scenario is true? Obtain a list of all life insurance policies that will be replaced - ANSWER During replacement of life insurance, a replacing insurer must do which of the following? Life income with period certain - ANSWER The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called Grace Period - ANSWER The automatic premium is activated at the end of the Surrender charge - ANSWER After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is the percentage called? A presentation of nonguaranteed elements of a policy - ANSWER The term "illustration" in a life insurance policy refers to They earn lower interest rates than fixed annuites - ANSWER Which of the following is NOT true regarding Equity Indexed Annuities? The completed application is submitted - ANSWER In insurance, an offer is usually made when

Human life value approach - ANSWER Which of the following methods of calculating the amount of life insurance needed takes into account the insured;s wages years until retirement and inflation? Attending physician - ANSWER Occasional visits by which of the following medical professions will NOT be covered under LTCs home health care? SEP's are suitable for large companies - ANSWER Which of the following statements concerning a Simplified Employee Pension plan is INCORRECT Routine and preventive maintenance - ANSWER Which of the following components of dental insurance does not require the payment of a deductible 10 hours - ANSWER A producer has completed 40 hours of continuing education this licensing period. How many credit hours may be carried over to the next licensing period 3 days - ANSWER Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained Experience rating - ANSWER What type of group rating uses the actual experience of the group as a factor in developing the rates

life income with period certain - ANSWER The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called Defamation - ANSWER Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance Change any incorrect statement on the application by personally initiating next to the corrected statement - ANSWER All of the following are duties and responsibilities of producers at the time of application EXCEPT Misrepresentation - ANSWER On its advertisement, a company claims that it has funds in its possession that are in fact, not available for the payment of losses or claims. The company is guilty of Consideration clause - ANSWER An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions In an institutional setting - ANSWER In which of the following locations would skilled care most likely be provided If the applicant is a smoker - ANSWER Which of the following applicants could the insurer charge a higher rate of

premium and not violate regulations regarding unfair discrimination Extended Term - ANSWER Which nonforfeiture option has the highest amount of insurance protection A statement that is sufficiently clear to identify the insured and the nature of the claim - ANSWER Under the mandatory uniform provision Notice of claim, The first notice of injury or sickness covered under an accident and health policy must contain Commissioner must be notified within 30 days - ANSWER If an insurance company cancels a producer's appointment the 18months - ANSWER To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previuos group plan is defined as the frequency and the amount of the premium payment - ANSWER The mode of premium payment Transfer of all ownership rights in a policy - ANSWER An absolute assignment is a Charge a higher premium - ANSWER If an applicant for a life insurance policy is found to be a standard risk, the insurance company is most likely to

Expenses - ANSWER The factor aded to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called Increase benefit levels without prociding proof of insurability - ANSWER Guarantee of insurability option in long-term care policies allows the insured to Revocable - ANSWER An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of her rights of ownership. The insurer should haved named her husband as conditional - ANSWER When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is Fixed period installments - ANSWER All of the following are dividend options exept is not considered - ANSWER In health insurance, if a doctor charges 50 dollars more than what the insurance company considers usual, customary and reasonable, the extra cost When the premium is paid at the time of application - ANSWER When is the insurability conditionally receipt given implied - ANSWER Which authority is not stated in an agent's contract but is required for the agent to conduct business

Attained age - ANSWER An employee quits his job and converts his group policy to an individual policy the premium on his individual policy will be based on his Long term care - ANSWER Which type of care is not covered by Medicare Single life - ANSWER Which settlement option provides a single beneficiary with income for the rest of their life Without receiving written consent from an insurance reguraly authority - ANSWER Federal law makes any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance commerce Favorable tax treatment - ANSWER What is the advantage of having an annuity A minor son of the insured - ANSWER Which of the following named beneficiaries would not be able to receive the dearth benefits directly from the insurer in the event of a death It pays for the physicians services, diagnostic test, and physical therapy - ANSWER Which of the following statements concerning Medicare plan B is right MEWA's are groups of 3 employees - ANSWER All of the following describe a MEWA except An index standard & poor 500 - ANSWER The equity in an equity index annuity is linked to

They have a guaranteed minimum interest rate - ANSWER Which of the following is true for both equity index annuities and fixed annuities Payment is limited to a certain period of time - ANSWER Which of the following applies to partial disability benefits Concealment - ANSWER An applicant knowingly fails to communicate info that would help the underwriter make a sound decision regarding coverage Gatekeeper - ANSWER Which of the following is another name for a primary care physician in an HMO Issuing sales material wth exaggerated statements about policy benefits - ANSWER Which of the following best describes a misrepresentation The loss must be catastrophic - ANSWER Which of the following is not a characteristic of an insurable risk They allow several small employers purchase less expensive insurance - ANSWER Which of the following is true regarding 's Both the principal and interest will be liquidated over a selected period of time - ANSWER Which of the following best describes fixed period settlement option

Held or transmitted in any form - ANSWER Under the privacy rule of HIPAA, protected info includes all individually identifiable info Coverage ends and the policy can not be reinstated - ANSWER What happens when a policy is surrendered for its cash value The commissioner - ANSWER Which if the following entities has the power to cease and desist order The premiums are invested in the insurers general account - ANSWER All of the following are true about variable products except Concealment - ANSWER What term best describes the act of withholding material information that Within 30 days - ANSWER If a resident producer or solicitor has a change of residential or business address, how soon must the licensee be notified Fixed amount - ANSWER When a policyholder makes a dollar amount in which the installment are to be paid they have chosen which settlement option National origin - ANSWER All of the following are factors that an underwrter could use to select and classify risk except Automatic premium loan - ANSWER A policyowner fails to pay the premium due on his whole life policy atter the grace period has passed, but the policy remains in force

Backdating policies to secure a lower premium for the insured - ANSWER Which of the following would not be considered a misrepresentation on the part of the insurer Joint life with Term certain - ANSWER Elijah and Murray are to receive the proceeds of a life insurance policy jointly until the first one dies. If either should die within a specified time than the other one then the other will receive benefits for that specified time. Within 1 year of the revocation - ANSWER A producers license has been revoked for a violation of the insurance code. When can the person renew their license 10yrs - ANSWER Any licensed person whose activities affect interstate commerce and who knowingly makes false Spendthrift provision - ANSWER When a life policy stipulates that the beneficiary will receive payments in specified installments for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installment Absolute and collateral - ANSWER The two types of assignments are At the time of the application - ANSWER When must an insurance company present an outline of coverage to an applicant for a Medicare settlement option

Domestic - ANSWER Which of the following best describes an insurance company that has been formed under the laws of the state Within 90 days or as soon as reasonably as possible - ANSWER How soon following the occurrence of a covered loss must an insured submit written proof of such loss Remain on the group health insurance plan and defer eligibility for Medicare until retirement - ANSWER When an employee is still employed upon reaching age 65 and eligibility for Medicare Commission - ANSWER Any payment to a producer from an insurer that is contingent on the side of an insurance policy 3 - ANSWER Under SIMPLE plans, participating employees may defer up to a specified amount each year Fraud - ANSWER An insurance company assures its new policyholder that their premium costs will not increase for a period of at least five yrs. However due to increasing financial strain, they plain to raise premium costs for all insureds by 10% pver the next two years If he recieves a deferred commission from insurance that he transacted while he was licensed - ANSWER Bill made his living as an insurance producer at one time but is no longer licensed. Under which of the following circumstances would it be acceptable for him to accept commission

Creditor requiring that a debtor buys insurance from a certain insured - ANSWER Which of the following is not allowed in credit life insurance he must submit proof of insurability - ANSWER If an employee wants to enter the group outside of the open enrollment to reduce adverse selection Installments for a fixed period - ANSWER Under which of the following annuity options does the annuitant select the time peirod for the benefits Fiduciary responsibility - ANSWER The requirement that agents not commingle insurance monies with their own funds is known as Certificate of Authority - ANSWER What certification must an insurer receive before it can transact insurance in Louisiana Insurer's executive officer - ANSWER Which of the following entities has the authority to make changes to an insurance policy The insurer will return a percentage of the premiums paid - ANSWER Regarding the return of premium option for LTC policies what happens to the premium if the policy lapses 3% - ANSWER An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guarenteed minimum iterest is set at 3%. During an economic downswing, the investments only drew 2.5%

Payments stop after the first death among the annuitants - ANSWER Which of the following is not true about a joint and survivor annuity benefit option limited pay whole life - ANSWER Your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at age 65what would be the right policy for the client Refund the premiums paid - ANSWER An insured committed suicide one year after his life insurance policy was issued 9800 - ANSWER An insured had a 10,000 term life policy. The annual premium of 200 was due on Feb 1 however the insured failed to pay the premium He died Feb 28 A university sports team - ANSWER Which of the following groups would probable be covered by blanket insurance To help the insured understand all aspects of the contrtact - ANSWER Why should the producer personally deliver the policy when the first premium has already been paid They earn lower interest rates than fixed annuities - ANSWER Which of the following is not true regarding Equity Indexed Annuities Full benefits - ANSWER An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job.

Reduction of Premium - ANSWER The policyowner pays for her life insurance annually. Until now she has collected a nontaxable dividend check each year Amounts payable under the policy will reflect the insured's correct age - ANSWER When an insured purchased her disability income policy she misstated her age to the agent She told the agent that she was 30 years old when she was 37 It is solely a federally administrated program - ANSWER Which of the following is incorrect concerning Medicaid Within 30 Days - ANSWER If a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the Commissioner Warranty - ANSWER Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract 1000 - ANSWER A producer didn't realize that he had committed an act in violation of the insurance code, How much would he probably be penalized Number of hours worked per week - ANSWER A 55-year-old employee has worked part-time for his new employer for 3 months now but has not been offered health insurance 8am-9pm - ANSWER According to the telemarketing sales rules what are the permissible hours for telemarketing calls

The insured's medical history - ANSWER Which of the following are generally not considered when underwriting group insurance 5 months - ANSWER What is the elimination period for Social Security disability benefits Medicare Part A - ANSWER To sign up for a Medicare prescription drug plan individuals must first be enrolled in Annuitant - ANSWER When an annuity is written whose life expectancy is taken into account The consumer's associates friends and neighbors provide the reports data - ANSWER In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports The benefits will be coordinated - ANSWER A husband and wife are insured under group health insurance plans at their own places of employment and as dependents under their spouses coverage Defamation - ANSWER Which of the following terms describes false statements about financial condition of any insurer that are intended to injure any person engaged in the business of insurance Concealment - ANSWER An insured intentionally did not disclose a material fact on an application for insurance

Per stripes - ANSWER What type of beneficiary designation allows the benefit to pass from deceased primary beneficiary to the beneficiary's heirs, instead of splitting the benefit a life-changing event, such as marriage, divorce, or childbirth. - ANSWER A group conversion option may be used in all the following instances EXCEPT Coverage offered by private insurers - ANSWER Which of the following is the most common method to supplement Medicare coverage Medicare - ANSWER Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT A patient's care is coordinated by an in-network primary care physician - ANSWER Which of the following is TRUE of a point of service plan Buyers often think they are getting broader coverage than they actually purchase - ANSWER What is the major reason that insurance regulators are often critical of dread disease insurance policies portability - ANSWER Which of the following is considered the major advantage of HIPAA Long term care insurance - ANSWER In which type of insurance is individually purchased coverage commonly more economical than group offered coverage

hospitalization insurance - ANSWER Which of the following, by definition, provides benefits for expenses incurred as a result of in-hospital medical treatment and surgery as well as certain outpatient expenses such as doctor's visits, laboratory tests, and diagnostic services Business overhead expense disability insurance - ANSWER Which type of coverage pays the operating costs of a small business when the owner becomes disabled Disability income insurance - ANSWER Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness safety glasses - ANSWER A basic vision care package includes all of the following EXCEPT Health Savings Account (HSA) - ANSWER Which plan is most commonly paired with a High Deductible Health Plan Individual insurance requires evidence of insurability. - ANSWER Which is a primary difference between individual and group health insurance prearranged costs for services rendered - ANSWER Which of the following is a characteristic of Preferred Provider Organizations (PPOs)

The insured has 90 days from the date of loss to provide proof of loss - ANSWER Under normal conditions which of the following is TRUE for proof of loss when a single loss is claimed insured original issue age is used - ANSWER What is the primary advantage for obtaining a reinstatement of a policy rather than obtaining a new one It lists specific conditions in the contract that are excluded from the contract - ANSWER What is an impairment rider it must be handled as a new claim for a new period of disability, requiring a new elimination period. - ANSWER How do most disability policies handle the case of a recurrent disability occurring at least 90 days after the first claim Insurer may elect NOT to renew for any reason only on the policy anniversary or premium due date. - ANSWER What does it mean if a health policy is optionally renewable notice of claim - ANSWER 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 soon thereafter as is reasonably possible A copayment is a set dollar amount, while coinsurance is set as a percentage - ANSWER What is the difference between copayment and coinsurance