1|Page
PSI - NY LIFE, ACCIDENT AND HEALTH
PRACTICE EXAM 17-55|COMPREHENSIVE
Q&A FOR CERTIFICATION SUCCESS 2026
All of the following are TRUE regarding incomplete applications EXCEPT - correct-
answer -The incomplete application can be accepted with the missing information
added later
A consumer report used to determine eligibility for insurance may include all of
the following EXCEPT - correct-answer -Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT
- correct-answer -The minor in a juvenile policy
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Why are insurance policies considered conditional contracts? - correct-answer -
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - correct-
answer -when the applicant for the policy is not the insured
Which of the following occurs immediately after the application is submitted and
the initial premium paid? - correct-answer -the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - correct-answer -Fair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)? - correct-
answer -the policy is originated primarily or solely for the purpose of resale
, 3|Page
All of the following are classifications of risk EXCEPT - correct-answer -non-
nicotine
What specific new procedures does the USA Patriot Act require of insurance
companies? - correct-answer -Establish an anti-money laundering program
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? - correct-answer -The applicant and possibly the agent
initial any changes made.
What is a MIB report? - correct-answer -medical information on an applicant for
assessing life or health insurance risk
PSI - NY LIFE, ACCIDENT AND HEALTH
PRACTICE EXAM 17-55|COMPREHENSIVE
Q&A FOR CERTIFICATION SUCCESS 2026
All of the following are TRUE regarding incomplete applications EXCEPT - correct-
answer -The incomplete application can be accepted with the missing information
added later
A consumer report used to determine eligibility for insurance may include all of
the following EXCEPT - correct-answer -Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT
- correct-answer -The minor in a juvenile policy
,2|Page
Why are insurance policies considered conditional contracts? - correct-answer -
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - correct-
answer -when the applicant for the policy is not the insured
Which of the following occurs immediately after the application is submitted and
the initial premium paid? - correct-answer -the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - correct-answer -Fair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)? - correct-
answer -the policy is originated primarily or solely for the purpose of resale
, 3|Page
All of the following are classifications of risk EXCEPT - correct-answer -non-
nicotine
What specific new procedures does the USA Patriot Act require of insurance
companies? - correct-answer -Establish an anti-money laundering program
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? - correct-answer -The applicant and possibly the agent
initial any changes made.
What is a MIB report? - correct-answer -medical information on an applicant for
assessing life or health insurance risk
