PSI - NY Life, Accident and Health Practice Exam
17-55, Just my cards + 199+ 75 (TEST) (LOT) 525+
Quizzes & Correct Ans/ Newly Updated.
All of the following are requirements to qualify for Social Security disability benefits EXCEPT when -
Answer: unable to work in occupation in which the worker was trained or educated
How long after being entitled to disability benefits will an individual be eligible to receive Medicare
benefits? - Answer: 2 years
Which of the following amends the Social Security Act to make Medicare secondary to group health
plans? - Answer: TEFRA
Which of the following is TRUE of a point of service plan? - Answer: A patient's care is coordinated by an
in-network primary care physician.
A group conversion option may be used in all the following instances EXCEPT - Answer: a life-changing
event, such as marriage, divorce, or childbirth
Which problem was universal life insurance designed to address? - Answer: low interest rates during
periods of high inflation
Page 1 of 110
,Compared to basic hospital, medical and surgical policies, which type of insurance provides broader
coverage, fewer gaps, higher individual benefits, and higher policy maximums? - Answer: major medical
insurance
Current assumption whole life policies are sensitive to which of the following? - Answer: interest rates
Which is the major reason why long term care insurance is becoming increasingly important? - Answer:
As life expectancy increases, the chances of needing long term care also increase
Which of the following is defined as the dollar amount beyond which the insured no longer participates
in payment of medical expenses? - Answer: Stop Loss Limit
Which is the primary purpose of Health Reimbursement Accounts (HRAs)? - Answer: To assist covered
employees with the payment of medical expenses on a high deductible plan funded through pre-tax
contributions.
States generally define a true "group" for insurance as requiring a minimum of how many participants? -
Answer: 10
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in
the event of a disability? - Answer: When there is a buy-sell agreement funded with life insurance to
buyout the interest of a deceased owner or partner.
Which type of life policy can be continued year after year without a required medical examination but
rates are dependent on the insured's current age? - Answer: renewable term
Which of the following is true about a decreasing term life policy? - Answer: The face amount reaches
zero at policy expiration.
Which of the following is TRUE of the limited pay whole life policy? - Answer: Coverage continues after
the policy is paid-up.
Page 2 of 110
,Which of the following is a characteristic of Preferred Provider Organizations (PPOs)? - Answer:
prearranged costs for services rendered
All of the following are characteristics of variable whole life EXCEPT - Answer: there is no guaranteed
minimum death benefit.
Which of the following policy types is considered double indemnity? - Answer: accidental death
Which of the following lists the three common types of permanent individual life insurance? - Answer:
Variable Life, Whole Life, Universal Life
Which of the following is TRUE for a flexible premium annuity? - Answer: The purchaser has the option
to vary the amount of each premium payment falling between a minimum and maximum amount.
Which type of annuity covers two or more annuitants and provides monthly income only until the first
annuitant dies? - Answer: Joint Life Annuity
Which of the following coverage types pays a monthly cash benefit following the elimination period for
total disability due to accident or sickness? - Answer: Disability income insurance
In which of the following does a covered employee agree to a reduction in compensation so the amount
can be used to cover medical expenses? - Answer: Flexible Spending Account (FSA)
Which of the following is covered by a dread disease policy? - Answer: illnesses that do not occur
frequently but incur significant costs when they do occur
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? -
Answer: Free Look
Page 3 of 110
, When will a policy pay on a UCR basis? - 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? - Answer: long term care rider
Which of the following is exempted from the incontestability provision in insurance policies? - Answer:
Fraudulent misstatements
What does first dollar coverage mean? - Answer: As soon as covered medical expenses are incurred, the
policy begins to pay
What is the waiver of premium provision? - 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 - Answer: for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? - 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 - 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? -
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? - Answer: with the non
cancelable policy the insurer may increase premiums only based on the terms of the policy
Page 4 of 110
17-55, Just my cards + 199+ 75 (TEST) (LOT) 525+
Quizzes & Correct Ans/ Newly Updated.
All of the following are requirements to qualify for Social Security disability benefits EXCEPT when -
Answer: unable to work in occupation in which the worker was trained or educated
How long after being entitled to disability benefits will an individual be eligible to receive Medicare
benefits? - Answer: 2 years
Which of the following amends the Social Security Act to make Medicare secondary to group health
plans? - Answer: TEFRA
Which of the following is TRUE of a point of service plan? - Answer: A patient's care is coordinated by an
in-network primary care physician.
A group conversion option may be used in all the following instances EXCEPT - Answer: a life-changing
event, such as marriage, divorce, or childbirth
Which problem was universal life insurance designed to address? - Answer: low interest rates during
periods of high inflation
Page 1 of 110
,Compared to basic hospital, medical and surgical policies, which type of insurance provides broader
coverage, fewer gaps, higher individual benefits, and higher policy maximums? - Answer: major medical
insurance
Current assumption whole life policies are sensitive to which of the following? - Answer: interest rates
Which is the major reason why long term care insurance is becoming increasingly important? - Answer:
As life expectancy increases, the chances of needing long term care also increase
Which of the following is defined as the dollar amount beyond which the insured no longer participates
in payment of medical expenses? - Answer: Stop Loss Limit
Which is the primary purpose of Health Reimbursement Accounts (HRAs)? - Answer: To assist covered
employees with the payment of medical expenses on a high deductible plan funded through pre-tax
contributions.
States generally define a true "group" for insurance as requiring a minimum of how many participants? -
Answer: 10
When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in
the event of a disability? - Answer: When there is a buy-sell agreement funded with life insurance to
buyout the interest of a deceased owner or partner.
Which type of life policy can be continued year after year without a required medical examination but
rates are dependent on the insured's current age? - Answer: renewable term
Which of the following is true about a decreasing term life policy? - Answer: The face amount reaches
zero at policy expiration.
Which of the following is TRUE of the limited pay whole life policy? - Answer: Coverage continues after
the policy is paid-up.
Page 2 of 110
,Which of the following is a characteristic of Preferred Provider Organizations (PPOs)? - Answer:
prearranged costs for services rendered
All of the following are characteristics of variable whole life EXCEPT - Answer: there is no guaranteed
minimum death benefit.
Which of the following policy types is considered double indemnity? - Answer: accidental death
Which of the following lists the three common types of permanent individual life insurance? - Answer:
Variable Life, Whole Life, Universal Life
Which of the following is TRUE for a flexible premium annuity? - Answer: The purchaser has the option
to vary the amount of each premium payment falling between a minimum and maximum amount.
Which type of annuity covers two or more annuitants and provides monthly income only until the first
annuitant dies? - Answer: Joint Life Annuity
Which of the following coverage types pays a monthly cash benefit following the elimination period for
total disability due to accident or sickness? - Answer: Disability income insurance
In which of the following does a covered employee agree to a reduction in compensation so the amount
can be used to cover medical expenses? - Answer: Flexible Spending Account (FSA)
Which of the following is covered by a dread disease policy? - Answer: illnesses that do not occur
frequently but incur significant costs when they do occur
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? -
Answer: Free Look
Page 3 of 110
, When will a policy pay on a UCR basis? - 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? - Answer: long term care rider
Which of the following is exempted from the incontestability provision in insurance policies? - Answer:
Fraudulent misstatements
What does first dollar coverage mean? - Answer: As soon as covered medical expenses are incurred, the
policy begins to pay
What is the waiver of premium provision? - 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 - Answer: for claims involving periodic payments
Which is a disadvantage to a flexible premium annuity? - 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 - 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? -
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? - Answer: with the non
cancelable policy the insurer may increase premiums only based on the terms of the policy
Page 4 of 110
