PSI NY Life, Accident & Health Exam – Test with
Verified Answers (2025 Edition)test bank with
complete solution.
Which policy provision permits the policy owner to take a specified
number of days to examine the contract, and allows for cancellation and a
full refund if the policy owner rejects the terms or costs? ~CORRECT
ANSWER~Free Look
When will a policy pay on a UCR basis? ~CORRECT ANSWER~When
particular benefits are not listed on a payment schedule
Which type of rider reimburses health and social service expenses incurred
in a convalescent or nursing home facility? ~CORRECT ANSWER~long
term care rider
Which of the following is exempted from the incontestability provision in
insurance policies? ~CORRECT ANSWER~Fraudulent misstatements
What does first dollar coverage mean? ~CORRECT ANSWER~As soon as
covered medical expenses are incurred, the policy begins to pay
,What is the waiver of premium provision? ~CORRECT ANSWER~In a
long term care contract, the premium is waived after the insured has been
confined for a specific period of time
According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
~CORRECT ANSWER~for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? ~CORRECT
ANSWER~the actual amount of the annuity benefit cannot be determined
in advance
When a policy or certificate containing an accelerated benefit provision is
applied for or delivered, the producer is responsible for providing that
applicant a summary of coverage that includes all of the following EXCEPT
~CORRECT ANSWER~a detailed and comprehensive summary of the
accelerated benefit
which one of the following represents an advantage of obtaining a policy
loan versus a withdrawal? ~CORRECT ANSWER~the loan is not taxed
while a withdrawal is taxed for amounts above the contract cost basis
How does a noncancelable policy differ from a guaranteed renewable
policy? ~CORRECT ANSWER~with the non cancelable policy the insurer
may increase premiums only based on the terms of the policy
,What does it mean if a health policy is conditionally renewable?
~CORRECT ANSWER~Insurer may elect NOT to renew only under the
conditions specified in the policy
When the suicide clause is inserted in a life insurance contract, death by
suicide is not covered during the policy's initial: ~CORRECT ANSWER~2
year period
What does coinsurance mean? ~CORRECT ANSWER~The insurer and the
insured share expenses over the deductible.
Which of the following must be given to the insurer within 20 days after
occurrence or commencement of any loss covered by the policy, or as soon
thereafter as is reasonably possible? ~CORRECT ANSWER~Notice of
claim
The right to change the beneficiary or dispose of the policy or its benefits in
any manner one chooses is reserved to the policy owner UNLESS which of
the following is true? ~CORRECT ANSWER~The policy owner has named
an irrevocable beneficiary
Which of the following refers to how often a premium is paid?
~CORRECT ANSWER~Mode
, All of the following are common exclusions from loss found in disability
income policies EXCEPT for that incurred while ~CORRECT
ANSWER~Committing a misdemeanor
At which point are contractual death benefit settlement options determined
and by whom are they determined? ~CORRECT ANSWER~At the time
the policy is purchased by the owner of the policy
All of the following are ownership rights EXCEPT ~CORRECT
ANSWER~Switching the policy from one insured to another
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
Verified Answers (2025 Edition)test bank with
complete solution.
Which policy provision permits the policy owner to take a specified
number of days to examine the contract, and allows for cancellation and a
full refund if the policy owner rejects the terms or costs? ~CORRECT
ANSWER~Free Look
When will a policy pay on a UCR basis? ~CORRECT ANSWER~When
particular benefits are not listed on a payment schedule
Which type of rider reimburses health and social service expenses incurred
in a convalescent or nursing home facility? ~CORRECT ANSWER~long
term care rider
Which of the following is exempted from the incontestability provision in
insurance policies? ~CORRECT ANSWER~Fraudulent misstatements
What does first dollar coverage mean? ~CORRECT ANSWER~As soon as
covered medical expenses are incurred, the policy begins to pay
,What is the waiver of premium provision? ~CORRECT ANSWER~In a
long term care contract, the premium is waived after the insured has been
confined for a specific period of time
According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
~CORRECT ANSWER~for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? ~CORRECT
ANSWER~the actual amount of the annuity benefit cannot be determined
in advance
When a policy or certificate containing an accelerated benefit provision is
applied for or delivered, the producer is responsible for providing that
applicant a summary of coverage that includes all of the following EXCEPT
~CORRECT ANSWER~a detailed and comprehensive summary of the
accelerated benefit
which one of the following represents an advantage of obtaining a policy
loan versus a withdrawal? ~CORRECT ANSWER~the loan is not taxed
while a withdrawal is taxed for amounts above the contract cost basis
How does a noncancelable policy differ from a guaranteed renewable
policy? ~CORRECT ANSWER~with the non cancelable policy the insurer
may increase premiums only based on the terms of the policy
,What does it mean if a health policy is conditionally renewable?
~CORRECT ANSWER~Insurer may elect NOT to renew only under the
conditions specified in the policy
When the suicide clause is inserted in a life insurance contract, death by
suicide is not covered during the policy's initial: ~CORRECT ANSWER~2
year period
What does coinsurance mean? ~CORRECT ANSWER~The insurer and the
insured share expenses over the deductible.
Which of the following must be given to the insurer within 20 days after
occurrence or commencement of any loss covered by the policy, or as soon
thereafter as is reasonably possible? ~CORRECT ANSWER~Notice of
claim
The right to change the beneficiary or dispose of the policy or its benefits in
any manner one chooses is reserved to the policy owner UNLESS which of
the following is true? ~CORRECT ANSWER~The policy owner has named
an irrevocable beneficiary
Which of the following refers to how often a premium is paid?
~CORRECT ANSWER~Mode
, All of the following are common exclusions from loss found in disability
income policies EXCEPT for that incurred while ~CORRECT
ANSWER~Committing a misdemeanor
At which point are contractual death benefit settlement options determined
and by whom are they determined? ~CORRECT ANSWER~At the time
the policy is purchased by the owner of the policy
All of the following are ownership rights EXCEPT ~CORRECT
ANSWER~Switching the policy from one insured to another
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
