FREE PSI Exam Questions and Answers
Which of the following criteria must be met by a policy in order to AVOID being labeled as a MEC?
The 7-Pay Test is a requirement set forth by the Affordable Care Act (ACA) to determine whether a health insurance policy is considered a MEC policy.
A policy that is classified as MEC meets the minimum coverage requirements under the ACA and satisfies the individual mandate to have health insurance or pay a penalty.
Generally, speaking, only which of the following types of injuries are covered by short-term disability insurance?
Short-term disability insurance generally only covers non-occupational injuries or illnesses. This means that the injury or illness must not have occurred as a result of the individual's job or work environment.
General property taxes on real estate that pay for government operations are called:
General real estate taxes, commonly known as ad valorem taxes, are based on property value (ad valorem is Latin for "according to value"). Specific, involuntary statutory liens. Government agencies and localities charge them.
Which of the following requires a covered employee to consent to a pay cut so that the money can be used to pay for medical costs?
A Flexible Spending Account (FSA) is a type of benefit plan in which a covered employee agrees to a reduction in compensation so that the amount can be used to cover qualified medical expenses on a pre-tax basis.
A mechanic's lien may be filed by a:
Workers and suppliers of materials for real estate improvements are protected by a mechanic's lien, a type of specialized, non-voluntary lien.
Which lien is voluntary and specific?
A borrower gives a lender a mortgage lien (sometimes termed a deed of trust lien) on real estate as security for a real estate loan.
When a real estate sales agreement is signed, but before title officially transfers, the agreement is in the following state:
When the terms of a contract have not yet been carried out, the contract is said to be "executory."
How much is the annual real estate tax on a $135,000 property assessed at $47,250 with an equalization factor of 125% and a 2.5% tax rate?
$47,250 × 1.25 × 0.025 = $1,477 (annual real estate tax)
The interest on a $60,000 loan was $412.50 of last month's loan payment. What is the interest rate per year?
$412.50 x 12 = $4,950 (annual interest amount)
$4,950 / $60,000 (loan balance) = 8.25% (00825) interest
The following choices are all exempt from forfeiture: EXCEPT
The cash dividend option is not a nonforfeiture option. Nonforfeiture options are the choices that a policyholder has in the event that they decide to surrender their life insurance policy before it reaches maturity, or they are unable to continue making premium payments.
The purpose of nonforfeiture options is to provide some value to the policyholder in the event that they are unable to continue with the policy, rather than forfeit all premiums paid.
All of the following ARE NOT CONSIDERED AS PART OF A CONSUMER REPORT USED TO DETERMINE INSURANCE ELIGIBILITY
A medical underwriting exam is a physical examination or medical questionnaire that is used by an insurance company to evaluate an individual's health status and determine their eligibility for coverage.
The purpose of a medical underwriting exam is to assess the risk of insuring an individual and to determine the appropriate premium rates for the policy.
Subject to appropriate exclusions, a document that protects against hidden risk such forgeries and title problems is called:
Owner's title insurance shields you against unknown risks. It makes it less risky to buy a property with a long legal history that you might not know everything about. Although such "hidden risks" are uncommon, they still occur and thus need to be insured against.
The buyers got a loan with a 75% loan-to-value (LTV) ratio. The term was 30 Years, and the interest rate was 7.125%. The interest payment for the first month was $477.82. What was the property's appraisal?
$477.82 x 12 = $5,733.84 interest per year
$5,733.84 / 7.125% = $80,475
$80,475 / 75% = $107,300
Which of the following changes the Social Security Act so that group health insurance takes precedence over Medicare?
TEFRA was a significant change to the way that Medicare interacts with employer-sponsored health plans and helped to reduce the financial burden on the Medicare program.
Among these, which is a general lien?
Judgement is the answer. The debtor's real and personal possessions are both subject to a general, involuntary equitable lien known as a judgment.
Which kind of life insurance has prices based on the insured's current age but can be renewed annually without a needed medical exam?
Renewable term life insurance policies provide coverage for a specific term or period of time, typically ranging from one to thirty years.
At the end of the term, the policyholder has the option to renew the policy for another term without the need for a medical examination. However, the premium rates for the renewed policy will be based on the insured's current age, which may result in higher premiums than the initial term.