PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE EXAM

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PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE EXAM

17-55 Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -75 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 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.Question 2: What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?

Answer:

The applicant and possibly the agent initial any changes made.

Question 3: 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.Question 4: 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

Question 5: A consumer report used to determine eligibility for insurance may include all of the following EXCEPT

Answer:

Medical underwriting exam

Question 6: Which of the following is true about a decreasing term life policy?

Answer:

The face amount reaches zero at policy expiration.

Question 7: When will a policy pay on a UCR basis?

Answer:

When particular benefits are not listed on a payment schedule Question 8: 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?

Answer:

Notice of claim Question 9: At which point are contractual death benefit settlement options determined and by whom are they determined?

Answer:

At the time the policy is purchased by the owner of the policy Question 10: What type of insurance should a company purchase if it wants to insure the life of its CEO?

Answer:

key person insurance Question 11: The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policy owner UNLESS which of the following is true?

Answer:

The policy owner has named an irrevocable beneficiary

Question 12: Which of the following occurs immediately after the application is submitted and the initial premium paid?

Answer:

the underwriting process begins

Question 13: What is the waiver of premium provision?

Answer:

In a long term care contract, the premium is waived after the insured has been confined for a specific period of time Question 14: 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 Question 15: All of the following are characteristics of variable whole life EXCEPT

Answer:

there is no guaranteed minimum death benefit.Question 16: When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing that applicant a summary of coverage that includes all of the following EXCEPT

Answer:

a detailed and comprehensive summary of the accelerated benefit Question 17: Which of the following lists the three common types of permanent individual life insurance?

Answer:

Variable Life, Whole Life, Universal Life

Question 18: All of the following are tax qualified retirement plans EXCEPT

Answer:

Section 529 plan.

Question 19: According to the Time Payment of Claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT

Answer:

for claims involving periodic payments

Question 20: What is a MIB report?

Answer:

medical information on an applicant for assessing life or health insurance risk Question 21: Managed care plans increase efficiency by all of the following means EXCEPT

Answer:

transferring the management of costs to the insureds.Question 22: 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 Question 23: 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.Question 24: 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) Question 25: Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

Answer:

Fair Credit Reporting Act