PSI NY LIFE ACCIDENT AND HEALTH ACTUAL EXAM 17-55 |
100% Correct Verified Answers | 2026/2027 Update | Pass
Guaranteed - A+ Graded
[SECTION 1: NY SPECIFIC REGULATIONS & STATUTES (Q1-12)
Q1. Under NY Insurance Law § 3203, what is the grace period for a whole life insurance
policy after the first premium has been paid?
A. 10 days
B. 21 days
C. 31 days [CORRECT]
D. 60 days
Rationale: NY Insurance Law § 3203(a)(1) mandates a 31-day grace period for all life
insurance policies (except single premium or variable policies with insufficient cash
value, which receive 61 days). The 10-day rule (A) applies to the free-look period for
replacement policies, not grace periods. The 60-day rule (D) applies to certain health
policies under NY law. This is a common PSI trap—confusing grace periods with
free-look periods.
Q2. A NY resident purchases a life insurance policy and receives a replacement notice.
Under NY Insurance Law Article 32, how many days does the applicant have to return
the policy for a full refund of all premiums paid?
A. 10 days
B. 15 days
C. 30 days
,D. 31 days [CORRECT]
Rationale: NY Insurance Law § 3219 provides a 30-day free-look period (often referred
to as 31 days in practice, including the day of delivery) for life insurance policies issued
as replacements. For non-replacement policies, the free-look period is 10 days. The
question specifies "replacement notice," triggering the longer 30/31-day window.
Distractor A (10 days) is the standard free-look for non-replacement policies—a classic
PSI trap.
Q3. Under NY Insurance Law § 7801 et seq., which of the following is a requirement for
a viatical settlement provider to be licensed in New York?
A. The provider must be a licensed life insurance agent for at least 5 years
B. The provider must maintain a surety bond or letter of credit in an amount determined
by the Superintendent [CORRECT]
C. The provider may only purchase policies from insureds with a life expectancy
exceeding 24 months
D. The provider is exempt from licensing if purchasing fewer than 10 policies annually
Rationale: NY Insurance Law Article 78 requires viatical settlement providers to
maintain a surety bond or letter of credit as determined by the Superintendent of
Financial Services. The provider does not need to be an agent (A). Viatical settlements
specifically involve insureds with life expectancies of 24 months or less (C is
backwards—this describes life settlements, not viatical). There is no small-volume
exemption (D). This tests NY-specific viatical settlement regulations.
Q4. Under NY Insurance Law, what is the maximum premium an insurer can charge for
state continuation coverage (mini-COBRA) under § 4305?
A. 100% of the group premium
B. 102% of the applicable premium [CORRECT]
, C. 150% of the group premium during the first 18 months
D. 125% of the applicable premium for the full 36 months
Rationale: NY Insurance Law § 4305(e) and related provisions cap the premium for
state continuation coverage at 102% of the applicable premium (100% of cost + 2%
administrative fee). The 150% rate (C) applies only during disability extensions under
federal COBRA, not NY mini-COBRA. This is a common PSI trap—confusing federal
COBRA premium rules with NY state continuation rules.
Q5. A NY employer with 15 employees terminates an employee. Under NY Law 4305,
how many months of continuation coverage is the terminated employee eligible for?
A. 18 months
B. 24 months
C. 29 months
D. 36 months [CORRECT]
Rationale: NY Law 4305 provides up to 36 months of continuation coverage for all
qualified beneficiaries under fully insured plans, regardless of employer size. For
employers subject to federal COBRA (20+ employees), the employee first gets 18
months federal COBRA, then an additional 18 months of NY state continuation to reach
36 months total. For smaller employers not subject to federal COBRA, NY law provides
the full 36 months directly. Federal COBRA alone provides only 18 months (A), and 29
months (C) is the federal disability extension. This tests the critical NY vs federal
COBRA distinction.
Q6. Under NY Insurance Law, which of the following is a mandated benefit that must be
included in all individual and small group health insurance policies issued in NY?
A. Cosmetic surgery coverage
B. Infertility treatment coverage [CORRECT]
100% Correct Verified Answers | 2026/2027 Update | Pass
Guaranteed - A+ Graded
[SECTION 1: NY SPECIFIC REGULATIONS & STATUTES (Q1-12)
Q1. Under NY Insurance Law § 3203, what is the grace period for a whole life insurance
policy after the first premium has been paid?
A. 10 days
B. 21 days
C. 31 days [CORRECT]
D. 60 days
Rationale: NY Insurance Law § 3203(a)(1) mandates a 31-day grace period for all life
insurance policies (except single premium or variable policies with insufficient cash
value, which receive 61 days). The 10-day rule (A) applies to the free-look period for
replacement policies, not grace periods. The 60-day rule (D) applies to certain health
policies under NY law. This is a common PSI trap—confusing grace periods with
free-look periods.
Q2. A NY resident purchases a life insurance policy and receives a replacement notice.
Under NY Insurance Law Article 32, how many days does the applicant have to return
the policy for a full refund of all premiums paid?
A. 10 days
B. 15 days
C. 30 days
,D. 31 days [CORRECT]
Rationale: NY Insurance Law § 3219 provides a 30-day free-look period (often referred
to as 31 days in practice, including the day of delivery) for life insurance policies issued
as replacements. For non-replacement policies, the free-look period is 10 days. The
question specifies "replacement notice," triggering the longer 30/31-day window.
Distractor A (10 days) is the standard free-look for non-replacement policies—a classic
PSI trap.
Q3. Under NY Insurance Law § 7801 et seq., which of the following is a requirement for
a viatical settlement provider to be licensed in New York?
A. The provider must be a licensed life insurance agent for at least 5 years
B. The provider must maintain a surety bond or letter of credit in an amount determined
by the Superintendent [CORRECT]
C. The provider may only purchase policies from insureds with a life expectancy
exceeding 24 months
D. The provider is exempt from licensing if purchasing fewer than 10 policies annually
Rationale: NY Insurance Law Article 78 requires viatical settlement providers to
maintain a surety bond or letter of credit as determined by the Superintendent of
Financial Services. The provider does not need to be an agent (A). Viatical settlements
specifically involve insureds with life expectancies of 24 months or less (C is
backwards—this describes life settlements, not viatical). There is no small-volume
exemption (D). This tests NY-specific viatical settlement regulations.
Q4. Under NY Insurance Law, what is the maximum premium an insurer can charge for
state continuation coverage (mini-COBRA) under § 4305?
A. 100% of the group premium
B. 102% of the applicable premium [CORRECT]
, C. 150% of the group premium during the first 18 months
D. 125% of the applicable premium for the full 36 months
Rationale: NY Insurance Law § 4305(e) and related provisions cap the premium for
state continuation coverage at 102% of the applicable premium (100% of cost + 2%
administrative fee). The 150% rate (C) applies only during disability extensions under
federal COBRA, not NY mini-COBRA. This is a common PSI trap—confusing federal
COBRA premium rules with NY state continuation rules.
Q5. A NY employer with 15 employees terminates an employee. Under NY Law 4305,
how many months of continuation coverage is the terminated employee eligible for?
A. 18 months
B. 24 months
C. 29 months
D. 36 months [CORRECT]
Rationale: NY Law 4305 provides up to 36 months of continuation coverage for all
qualified beneficiaries under fully insured plans, regardless of employer size. For
employers subject to federal COBRA (20+ employees), the employee first gets 18
months federal COBRA, then an additional 18 months of NY state continuation to reach
36 months total. For smaller employers not subject to federal COBRA, NY law provides
the full 36 months directly. Federal COBRA alone provides only 18 months (A), and 29
months (C) is the federal disability extension. This tests the critical NY vs federal
COBRA distinction.
Q6. Under NY Insurance Law, which of the following is a mandated benefit that must be
included in all individual and small group health insurance policies issued in NY?
A. Cosmetic surgery coverage
B. Infertility treatment coverage [CORRECT]
