PSI - NY Life, Accident and Health Practice Exam 17-
55 Latest recent & frequently tested with questions
and verified accurate solutions (detailed & elaborated)
GRADED A+
,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 ans:Free Look
When will a policy pay on a UCR basis? - correct ans: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 ans:long term care rider
Which of the following is exempted from the incontestability provision in insurance policies? - correct
ans:Fraudulent misstatements
What does first dollar coverage mean? - correct ans:As soon as covered medical expenses are incurred,
the policy begins to pay
What is the waiver of premium provision? - correct ans: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 ans:for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? - correct ans: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 ans: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 ans: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 ans: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 ans: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 ans:2 year period
What does coinsurance mean? - correct ans: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 ans: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 ans:The policy owner has
named an irrevocable beneficiary
Which of the following refers to how often a premium is paid? - correct ans:Mode
All of the following are common exclusions from loss found in disability income policies EXCEPT for that
incurred while - correct ans:Committing a misdemeanor
At which point are contractual death benefit settlement options determined and by whom are they
determined? - correct ans:At the time the policy is purchased by the owner of the policy
All of the following are ownership rights EXCEPT - correct ans:Switching the policy from one insured to
another
All of the following are TRUE regarding incomplete applications EXCEPT - correct ans: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 ans:Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT - correct ans:The
minor in a juvenile policy
Why are insurance policies considered conditional contracts? - correct ans: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 ans: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 ans:the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by which of the
following? - correct ans:Fair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)? - correct ans:the policy is originated
primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT - correct ans:non-nicotine
What specific new procedures does the USA Patriot Act require of insurance companies? - correct
ans: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 ans:The
applicant and possibly the agent initial any changes made.
What is a MIB report? - correct ans:medical information on an applicant for assessing life or health
insurance risk
55 Latest recent & frequently tested with questions
and verified accurate solutions (detailed & elaborated)
GRADED A+
,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 ans:Free Look
When will a policy pay on a UCR basis? - correct ans: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 ans:long term care rider
Which of the following is exempted from the incontestability provision in insurance policies? - correct
ans:Fraudulent misstatements
What does first dollar coverage mean? - correct ans:As soon as covered medical expenses are incurred,
the policy begins to pay
What is the waiver of premium provision? - correct ans: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 ans:for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? - correct ans: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 ans: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 ans: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 ans: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 ans: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 ans:2 year period
What does coinsurance mean? - correct ans: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 ans: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 ans:The policy owner has
named an irrevocable beneficiary
Which of the following refers to how often a premium is paid? - correct ans:Mode
All of the following are common exclusions from loss found in disability income policies EXCEPT for that
incurred while - correct ans:Committing a misdemeanor
At which point are contractual death benefit settlement options determined and by whom are they
determined? - correct ans:At the time the policy is purchased by the owner of the policy
All of the following are ownership rights EXCEPT - correct ans:Switching the policy from one insured to
another
All of the following are TRUE regarding incomplete applications EXCEPT - correct ans: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 ans:Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT - correct ans:The
minor in a juvenile policy
Why are insurance policies considered conditional contracts? - correct ans: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 ans: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 ans:the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by which of the
following? - correct ans:Fair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)? - correct ans:the policy is originated
primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT - correct ans:non-nicotine
What specific new procedures does the USA Patriot Act require of insurance companies? - correct
ans: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 ans:The
applicant and possibly the agent initial any changes made.
What is a MIB report? - correct ans:medical information on an applicant for assessing life or health
insurance risk
