PSI - NY Life, Accident
And Health
What is the primary purpose of life insurance?
A) To provide financial protection to the insured during their lifetime
B) To create an investment portfolio for the policyholder
C) To provide financial protection to beneficiaries in case of the insured’s death
D) To guarantee a loan for the insured
,Answer: C) To provide financial protection to beneficiaries in case of the insured’s
death
Which type of life insurance policy provides coverage for a specific period and has no
cash value?
A) Whole Life
B) Universal Life
C) Term Life
D) Variable Life
Answer: C) Term Life
What happens if an insured stops paying premiums on a whole life policy?
A) The policy is immediately canceled
B) The policy remains active due to nonforfeiture options
C) The insurer takes legal action
D) The insured receives a full refund of all premiums paid
Answer: B) The policy remains active due to nonforfeiture options
Accident & Health Insurance Questions
What is the purpose of the incontestability clause in a health insurance policy?
A) To allow the insured to contest claim denials
,B) To prevent the insurer from denying claims due to misstatements after a certain
period
C) To allow the insurer to cancel a policy at any time
D) To provide coverage for pre-existing conditions
Answer: B) To prevent the insurer from denying claims due to misstatements after a
certain period
Which type of health insurance policy pays a fixed amount per day for
hospitalization?
A) Major Medical Insurance
B) Hospital Indemnity Insurance
C) Long-Term Care Insurance
D) Medicare Supplement
Answer: B) Hospital Indemnity Insurance
What is the purpose of the Coordination of Benefits (COB) provision in health
insurance?
A) To ensure the insured can claim benefits from multiple policies
B) To determine which insurer pays first when an individual is covered by more than
one policy
, C) To allow the insured to select their preferred insurer
D) To cancel duplicate insurance coverage
Answer: B) To determine which insurer pays first when an individual is covered by
more than one policy
General Insurance Concepts
Which of the following is considered an element of a legal insurance contract?
A) Warranty
B) Indemnity
C) Consideration
D) Estoppel
Answer: C) Consideration
What is the primary role of an insurance underwriter?
A) To process claims
B) To determine the probability of a loss occurring and set premiums accordingly
C) To market and sell insurance policies
D) To represent clients in legal disputes
Answer: B) To determine the probability of a loss occurring and set premiums
accordingly
And Health
What is the primary purpose of life insurance?
A) To provide financial protection to the insured during their lifetime
B) To create an investment portfolio for the policyholder
C) To provide financial protection to beneficiaries in case of the insured’s death
D) To guarantee a loan for the insured
,Answer: C) To provide financial protection to beneficiaries in case of the insured’s
death
Which type of life insurance policy provides coverage for a specific period and has no
cash value?
A) Whole Life
B) Universal Life
C) Term Life
D) Variable Life
Answer: C) Term Life
What happens if an insured stops paying premiums on a whole life policy?
A) The policy is immediately canceled
B) The policy remains active due to nonforfeiture options
C) The insurer takes legal action
D) The insured receives a full refund of all premiums paid
Answer: B) The policy remains active due to nonforfeiture options
Accident & Health Insurance Questions
What is the purpose of the incontestability clause in a health insurance policy?
A) To allow the insured to contest claim denials
,B) To prevent the insurer from denying claims due to misstatements after a certain
period
C) To allow the insurer to cancel a policy at any time
D) To provide coverage for pre-existing conditions
Answer: B) To prevent the insurer from denying claims due to misstatements after a
certain period
Which type of health insurance policy pays a fixed amount per day for
hospitalization?
A) Major Medical Insurance
B) Hospital Indemnity Insurance
C) Long-Term Care Insurance
D) Medicare Supplement
Answer: B) Hospital Indemnity Insurance
What is the purpose of the Coordination of Benefits (COB) provision in health
insurance?
A) To ensure the insured can claim benefits from multiple policies
B) To determine which insurer pays first when an individual is covered by more than
one policy
, C) To allow the insured to select their preferred insurer
D) To cancel duplicate insurance coverage
Answer: B) To determine which insurer pays first when an individual is covered by
more than one policy
General Insurance Concepts
Which of the following is considered an element of a legal insurance contract?
A) Warranty
B) Indemnity
C) Consideration
D) Estoppel
Answer: C) Consideration
What is the primary role of an insurance underwriter?
A) To process claims
B) To determine the probability of a loss occurring and set premiums accordingly
C) To market and sell insurance policies
D) To represent clients in legal disputes
Answer: B) To determine the probability of a loss occurring and set premiums
accordingly
