R05 PMI features and plan types: free practice questions

1. Question 1 of 5

   What does private medical insurance provide cover against?

   Option A: The cost of long-term residential careOption B: The costs of private medical treatmentOption C: Loss of earnings through sicknessOption D: Death during the policy term

   Show answer

   The answer is B: The costs of private medical treatment

   PMI covers the costs of private medical treatment, generally with a consultant and hospital of the patient's choice.

   Why the other options are wrong

   A

   Residential care costs are covered by long-term care products.

   C

   Loss of earnings is covered by income protection.

   D

   Death during the term is covered by life assurance.

2. Question 2 of 5

   What is the main distinction between acute and chronic conditions?

   Option A: Acute conditions start quickly and usually respond to treatment; chronic ones persistOption B: Acute conditions are always life-threatening, while chronic conditions are notOption C: Acute conditions are treated only by GPs, chronic ones only by consultantsOption D: Chronic conditions only affect older people, while acute ones affect anyone

   Show answer

   The answer is A: Acute conditions start quickly and usually respond to treatment; chronic ones persist

   Acute conditions start quickly and can usually be cured with short treatment, such as an appendix removal. Chronic conditions, such as asthma, are long-lasting and usually incurable.

   Why the other options are wrong

   B

   Acute conditions aren't always life-threatening.

   C

   Acute conditions are often treated by specialists, not just GPs.

   D

   Chronic conditions can affect people of any age.

3. Question 3 of 5

   Which statement about the ABI Statement of Best Practice for sales of PMI is correct?

   Option A: It applies only to group schemes, not to individual policiesOption B: Compliance is voluntary, but members who comply must do so in fullOption C: It is a legal requirement enforced by the FCA on all PMI sellersOption D: It sets maximum premiums

   Show answer

   The answer is B: Compliance is voluntary, but members who comply must do so in full

   The 2017 Statement is voluntary for ABI members, but firms that comply are expected to comply in full. It covers common definitions, mandated information and plain language explanations.

   Why the other options are wrong

   A

   It isn't limited to group schemes.

   C

   It isn't a legal requirement; it's voluntary for ABI members.

   D

   It doesn't set premiums.

4. Question 4 of 5

   Which cancer treatment is a PMI insurer LEAST likely to fund in full?

   Option A: Licensed chemotherapy approved for the patient's conditionOption B: Diagnostic scans to confirm the cancerOption C: Radiotherapy as part of eligible treatmentOption D: Experimental drugs not approved by NICE or licensed in Europe

   Show answer

   The answer is D: Experimental drugs not approved by NICE or licensed in Europe

   Most policies do not pay for all cancer care. Experimental treatment or drugs that are unlicensed or not NICE-approved are likely to be excluded or only partly covered.

   Why the other options are wrong

   A

   Licensed chemotherapy approved for the condition is usually covered.

   B

   Diagnostic scans to confirm the cancer are usually covered.

   C

   Radiotherapy as part of eligible treatment is usually covered.

5. Question 5 of 5

   Which feature is most typical of a basic or budget PMI plan?

   Option A: Cash for nights spent as an NHS patient, plus cover for travel abroadOption B: Home nursing and private ambulances included as standard benefitsOption C: Cover mostly limited to accommodation, drugs, dressings and doctors' feesOption D: Cover for dental treatment and alternative medicine as standard

   Show answer

   The answer is C: Cover mostly limited to accommodation, drugs, dressings and doctors' fees

   Budget plans keep costs low with restricted cover and limits. Outpatient treatment, home nursing and ambulances may be excluded or restricted, and hospital choice may be limited.

   Why the other options are wrong

   A

   Cash for NHS stays plus travel cover goes beyond a budget plan.

   B

   Home nursing and private ambulances are typical of comprehensive plans.

   D

   Dental and alternative medicine are extras on comprehensive plans.

R0 Exam Prep is an independent revision tool. It is not produced, endorsed by or affiliated with the Chartered Insurance Institute (CII). Questions and explanations are original. Use it alongside the official study text. About R0 Exam Prep