PSI Insurance Exam 4

Question 1

A health insurance policy that requires the insured to use network providers except in emergencies is a:

Accepted Answer

HMO

Answer

HMOs (Health Maintenance Organizations) generally require members to receive care from network providers and have a primary care physician as gatekeeper.

Question 2

Under an auto policy, which coverage pays for damage to the insured's own vehicle caused by hitting another car?

Accepted Answer

Collision

Answer

Collision coverage pays for damage to the insured's vehicle resulting from a collision with another vehicle or object.

Question 3

Which life insurance rider waives premium payments if the insured becomes totally disabled?

Accepted Answer

Waiver of premium rider

Answer

The waiver of premium rider keeps the life policy in force without premium payments if the insured suffers total disability as defined in the policy.

Question 4

An insurer's legal right to recover from a negligent third party the amount paid to an insured claimant is called:

Accepted Answer

Subrogation

Answer

Subrogation allows the insurer to 'step into the shoes' of the insured and sue the responsible party to recover claim payments made.

Question 5

A long-term care policy that allows unused benefits to be carried forward to extend the benefit period is using which feature?

Accepted Answer

Pooled benefits

Answer

Pooled benefits allow the total benefit pool to be drawn upon flexibly, so unused daily benefits effectively extend the total coverage period.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI Insurance Exam 4