FINAL REVIEW FOR PSI OHIO INSURANCE EXAM

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FINAL REVIEW FOR PSI OHIO INSURANCE EXAM

Qs and Ans - Expert- Explanation - ing score -21 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which organization safeguards the insured against the financial failure of an insurance company?

Answer:

Life, Accident, Health and Hospital Guaranty Association Question 2: An example of endodontic treatment is a1. filling2. bridge3. root canal4. crown

Answer:

root canal:

Endodontics is the branch of dentistry dealing with diseases of the dental pulp. Root canals would be an example.Question 3: In a rollover, trustee is required to hold what percentage to cover taxes due

Answer:

20% Question 4: In most dental plans, a deductible typically is NOT applied to1. restorative dentistry2. oral surgery3. orthodontics4. preventative and diagnostic services

Answer:

preventative and diagnostic services:

Preventative and diagnostic services are normally fully paid in most dental plans.

Question 5: premium paid by both employee and employer

Answer:

employer is taxed and employee is tax free

Question 6: What is the term for being able to pay your taxes later?

Answer:

Tax Deferred

Question 7: How many days must a rollover be deposited to another account

Answer:

60 Question 8: A common exclusion or limitation on a dental policy is1. Fluoride treatments2.X-rays3. Tooth extractions4. Endodontics

Answer:

A common exclusion or limitation on a dental policy is1. Fluoride treatments2. X-rays3. Tooth extractions4. Endodontics Question 9: Group dental plans will frequently place a limit on annual benefits in order to minimize1. adverse selection2. enrollment3. coinsurance4. administrative costs

Answer:

adverse selection:

Employer group dental expense plans limit annual benefits in an attempt to MINIMIZE adverse selection.

Question 10: managing general agent

Answer:

an agent that hires, trains, and supervises other agents within a specific geographical area

Question 11: Whom does a licensed agent represent in an insurance transaction?

Answer:

Insurer

Question 12: treaty reinsurance

Answer:

an agreement between a ceding insurer and reinsurer to underwrite certain classes of risks

Question 13: Adhesion Contract

Answer:

insurance contracts that provide legal protection for insureds when coverages are not clearly stated in the policy.Question 14: What illegal trade practice is committed by an agent who deliberately makes malicious statements about another insurance company?

Answer:

Defamation Question 15: What is an agent guilty of if they offer a cash reward to a prospect in order to buy a policy?

Answer:

Rebating Question 16: What is the term used for insurance sold by agents only to family members, relatives, and employees?

Answer:

Controlled business

Question 17: premium paid by employee

Answer:

benefit is tax free Question 18: Which action does NOT result in the denial, revocation, or suspension of an agent's license?

Answer:

Lack of competence

Question 19: Suitability consideration

Answer:

to provide product recommendations to clients based on how suitable the features and benefits are to meet their goals.

Question 20: premium paid by employer

Answer:

benefit is taxed Question 21: If an agent provides false statements about a policy's benefits to a proposed client during a sale, what offense is committed?

Answer:

Twisting