PSI NY Life, Accident & Health Practice Exam 2026
|Actual Questions with Verified Answers – NYS
Insurance Licensing 17-55 Test Prep | Instant
Download Pdf
Introduction
This comprehensive practice exam is designed to help candidates prepare for the PSI - NY
Life, Accident and Health Insurance Licensing Exam (Series 17-55) . The actual exam
consists of 150 scored questions with a 2.5-hour time limit and requires a passing score
of 70% . To qualify, candidates must complete a 40-hour pre-licensing course approved
by the New York Department of Financial Services . This guide covers key topics including
Life Insurance Policies, Health and Disability Policies, Policy Provisions and Riders, New
York Insurance Laws and Regulations, Annuities, Medicare, and Tax Considerations .
All answers are presented in bold italics with detailed rationales following each response.
Section 1: Licensing, Definitions & Regulations (Questions 1-20)
Q1. According to NY Insurance Law §2101(k), an "insurance producer" includes all of
the following EXCEPT:
A) An insurance agent
B) An insurance broker
C) A clerical employee who does not receive commissions
D) A reinsurance intermediary
Answer: C – A clerical employee who does not receive commissions
Explanation: NY Insurance Law §2101(k) defines an insurance producer as an agent,
broker, reinsurance intermediary, excess lines broker, or any other person required to be
licensed to sell, solicit, or negotiate insurance. Clerical employees who do not receive
commissions are specifically excluded from this definition .
Q2. Under NY law, "negotiate" or "negotiation" means:
,A) Exchanging a contract of insurance for money
B) Attempting to sell insurance or urging a person to apply
C) Conferring directly with a purchaser about substantive benefits, terms, or conditions of an
insurance contract
D) Adjusting claims on behalf of an insurer
Answer: C – Conferring directly with a purchaser about substantive benefits, terms,
or conditions
Explanation: NY Insurance Law §2101(m) defines negotiation as the act of conferring
directly with or offering advice directly to a purchaser or prospective purchaser concerning
any of the substantive benefits, terms, or conditions of the contract .
Q3. The minimum age requirement for an individual applying for an insurance license
in New York is:
A) 16 years
B) 18 years
C) 21 years
D) 25 years
Answer: B – 18 years
Explanation: Under NY Insurance Law §2103(d-i), every individual applicant for a
license must be 18 years of age or older at the time of license issuance .
Q4. When a licensed insurance agent moves from another state to New York, how
many days do they have to apply for a resident license without retaking the
examination?
A) 30 days
B) 60 days
C) 90 days
D) 120 days
Answer: C – 90 days
Explanation: According to NY Insurance Law §2103(g)(11), an individual licensed in
another state that moves to New York must make an application within 90 days of
establishing legal residence to become a resident licensee. No prelicensing education or
examination is required for lines previously held .
,Q5. What is the continuing education (CE) requirement for licensed agents in New
York?
A) 10 credits biennially
B) 15 credits per biennial licensing period
C) 20 credits annually
D) No CE requirement
Answer: B – 15 credits per biennial licensing period
Explanation: Resident licensees including agents, brokers, consultants, and public
adjusters must complete 15 credits of approved continuing education during each biennial
licensing period as a condition of renewal .
Q6. Licensees must notify the Superintendent of a change of address within:
A) 10 days
B) 30 days
C) 60 days
D) 90 days
Answer: B – 30 days
Explanation: Under NY Insurance Law §2134, licensees must inform the
Superintendent of a change of business or residence address within 30 days of the change .
Q7. What specific new procedures does the USA Patriot Act require of insurance
companies?
A) Background checks on all clients
B) Establish an anti-money laundering program
C) Fingerprinting all applicants
D) Require two forms of identification
Answer: B – Establish an anti-money laundering program
Explanation: The USA Patriot Act requires insurance companies to establish anti-
money laundering programs to detect and prevent financial crimes .
Q8. Obtaining consumer information reports under false pretenses is prosecutable
by which of the following?
, A) New York Department of State
B) Fair Credit Reporting Act
C) HIPAA
D) Gramm-Leach-Bliley Act
Answer: B – Fair Credit Reporting Act
Explanation: The Fair Credit Reporting Act (FCRA) prohibits obtaining consumer
information reports under false pretenses and provides for prosecution of violations .
Q9. What is a MIB report?
A) A financial credit check on the applicant
B) Medical information on an applicant for assessing life or health insurance risk
C) A criminal background check
D) A driving record report
Answer: B – Medical information on an applicant for assessing life or health
insurance risk
Explanation: The Medical Information Bureau (MIB) is a membership corporation that
maintains medical information on applicants for assessing life or health insurance risk,
helping insurers detect fraud and misrepresentation .
Q10. How do warranties differ from representations?
A) A warranty is believed to be true; a representation is guaranteed
B) A warranty is guaranteed to be true; a representation is believed to be true to the best of
one's knowledge
C) They are legally the same
D) Warranties apply only to health insurance
Answer: B – A warranty is guaranteed to be true; a representation is believed to be
true to the best of one's knowledge
Explanation: A warranty is a statement guaranteed to be true, and if false, can void the
contract. A representation is a statement believed to be true to the best of one's knowledge
and does not carry the same legal guarantee .
Q11. When does insurable interest come into play in a life insurance policy?
A) When the applicant is also the insured
B) When the applicant for the policy is not the insured
|Actual Questions with Verified Answers – NYS
Insurance Licensing 17-55 Test Prep | Instant
Download Pdf
Introduction
This comprehensive practice exam is designed to help candidates prepare for the PSI - NY
Life, Accident and Health Insurance Licensing Exam (Series 17-55) . The actual exam
consists of 150 scored questions with a 2.5-hour time limit and requires a passing score
of 70% . To qualify, candidates must complete a 40-hour pre-licensing course approved
by the New York Department of Financial Services . This guide covers key topics including
Life Insurance Policies, Health and Disability Policies, Policy Provisions and Riders, New
York Insurance Laws and Regulations, Annuities, Medicare, and Tax Considerations .
All answers are presented in bold italics with detailed rationales following each response.
Section 1: Licensing, Definitions & Regulations (Questions 1-20)
Q1. According to NY Insurance Law §2101(k), an "insurance producer" includes all of
the following EXCEPT:
A) An insurance agent
B) An insurance broker
C) A clerical employee who does not receive commissions
D) A reinsurance intermediary
Answer: C – A clerical employee who does not receive commissions
Explanation: NY Insurance Law §2101(k) defines an insurance producer as an agent,
broker, reinsurance intermediary, excess lines broker, or any other person required to be
licensed to sell, solicit, or negotiate insurance. Clerical employees who do not receive
commissions are specifically excluded from this definition .
Q2. Under NY law, "negotiate" or "negotiation" means:
,A) Exchanging a contract of insurance for money
B) Attempting to sell insurance or urging a person to apply
C) Conferring directly with a purchaser about substantive benefits, terms, or conditions of an
insurance contract
D) Adjusting claims on behalf of an insurer
Answer: C – Conferring directly with a purchaser about substantive benefits, terms,
or conditions
Explanation: NY Insurance Law §2101(m) defines negotiation as the act of conferring
directly with or offering advice directly to a purchaser or prospective purchaser concerning
any of the substantive benefits, terms, or conditions of the contract .
Q3. The minimum age requirement for an individual applying for an insurance license
in New York is:
A) 16 years
B) 18 years
C) 21 years
D) 25 years
Answer: B – 18 years
Explanation: Under NY Insurance Law §2103(d-i), every individual applicant for a
license must be 18 years of age or older at the time of license issuance .
Q4. When a licensed insurance agent moves from another state to New York, how
many days do they have to apply for a resident license without retaking the
examination?
A) 30 days
B) 60 days
C) 90 days
D) 120 days
Answer: C – 90 days
Explanation: According to NY Insurance Law §2103(g)(11), an individual licensed in
another state that moves to New York must make an application within 90 days of
establishing legal residence to become a resident licensee. No prelicensing education or
examination is required for lines previously held .
,Q5. What is the continuing education (CE) requirement for licensed agents in New
York?
A) 10 credits biennially
B) 15 credits per biennial licensing period
C) 20 credits annually
D) No CE requirement
Answer: B – 15 credits per biennial licensing period
Explanation: Resident licensees including agents, brokers, consultants, and public
adjusters must complete 15 credits of approved continuing education during each biennial
licensing period as a condition of renewal .
Q6. Licensees must notify the Superintendent of a change of address within:
A) 10 days
B) 30 days
C) 60 days
D) 90 days
Answer: B – 30 days
Explanation: Under NY Insurance Law §2134, licensees must inform the
Superintendent of a change of business or residence address within 30 days of the change .
Q7. What specific new procedures does the USA Patriot Act require of insurance
companies?
A) Background checks on all clients
B) Establish an anti-money laundering program
C) Fingerprinting all applicants
D) Require two forms of identification
Answer: B – Establish an anti-money laundering program
Explanation: The USA Patriot Act requires insurance companies to establish anti-
money laundering programs to detect and prevent financial crimes .
Q8. Obtaining consumer information reports under false pretenses is prosecutable
by which of the following?
, A) New York Department of State
B) Fair Credit Reporting Act
C) HIPAA
D) Gramm-Leach-Bliley Act
Answer: B – Fair Credit Reporting Act
Explanation: The Fair Credit Reporting Act (FCRA) prohibits obtaining consumer
information reports under false pretenses and provides for prosecution of violations .
Q9. What is a MIB report?
A) A financial credit check on the applicant
B) Medical information on an applicant for assessing life or health insurance risk
C) A criminal background check
D) A driving record report
Answer: B – Medical information on an applicant for assessing life or health
insurance risk
Explanation: The Medical Information Bureau (MIB) is a membership corporation that
maintains medical information on applicants for assessing life or health insurance risk,
helping insurers detect fraud and misrepresentation .
Q10. How do warranties differ from representations?
A) A warranty is believed to be true; a representation is guaranteed
B) A warranty is guaranteed to be true; a representation is believed to be true to the best of
one's knowledge
C) They are legally the same
D) Warranties apply only to health insurance
Answer: B – A warranty is guaranteed to be true; a representation is believed to be
true to the best of one's knowledge
Explanation: A warranty is a statement guaranteed to be true, and if false, can void the
contract. A representation is a statement believed to be true to the best of one's knowledge
and does not carry the same legal guarantee .
Q11. When does insurable interest come into play in a life insurance policy?
A) When the applicant is also the insured
B) When the applicant for the policy is not the insured
